Why did FDI in real estate in the first 7 months decrease 74%?

According to the Ministry of Planning and Investment, as of July 20, 2019, FDI inflows into real estate business activities reached US $ 1.74 billion. Compared to the same period in 2018, this figure decreased by 74%.


According to the Report of Foreign Investment Department, Ministry of Planning and Investment, as of July 20, 2019, the total newly and additionally registered capital, capital contributed and shares purchased by foreign investors (foreign investment) is 20.22 billion USD, equaling 88.1% compared to the same period in 2018.


Foreign investors have invested in 19 sectors, most of which focused on processing and manufacturing industries with a total capital of 14.46 billion USD, accounting for 71.5% of total registered investment capital. Real estate business ranked second with total investment capital of 1.47 billion USD, accounting for 7.3% of total registered investment capital. Wholesale and retail field ranked third with total registered investment capital of nearly 1.1 billion USD, accounting for 5.4% of total registered investment capital.



Real estate ranked second in total FDI investment in Vietnam. (Photo: Zing).


In 7 months, 2,064 new projects were granted investment registration certificates, up 24.6% of the projects compared to the same period in 2018. The total newly registered capital of US $ 8.27 billion, equal to 62.6% compared to the same period in 2018. with the same period of 2018.


Newly registered investment capital decreased over the same period because in the first 7 months of 2018, many large projects were granted new investment registration certificates such as Smart City project in Hai Boi commune, Dong Anh, Hanoi which was invested by Japan with a total registered capital of 4.14 billion USD; the project of Poplypropylene factory and underground storage of liquefied petroleum oil was invested by Korea with a total registered capital of 1.2 billion USD in Ba Ria - Vung Tau.


Among 99 countries and territories having investment projects in Vietnam, Hong Kong leaded the way with a total investment of US $ 5.44 billion (of which US $ 3.85 billion buying shares in Vietnam Beverage Co., Ltd. in Hanoi), accounting for 26.9% of total investment. South Korea ranked second with total investment capital of 3.13 billion USD, accounting for 15.5% of total investment capital into Vietnam. China ranked third with total registered investment capital of 2.48 billion USD, accounting for 12.3% of total investment capital. Singapore and Japan ranked fourth and fifth respectively with a total registered capital of 2.3 billion USD and 2.25 billion USD.


By investment area, foreign investors have invested in 55 provinces and cities, in which Hanoi attracted the most foreign investment capital, with a total registered capital of 4.86 billion USD, accounting for 24% of total investment capital. Ho Chi Minh City ranked second with a total registered capital of 3.55 billion USD, accounting for 17.5% of total investment capital. Binh Duong ranked third, with a total registered capital of 1.73 billion USD, accounting for 8.6% of total investment capital.


According to Life & Legal