Foreign investment continues to rise into real-estate projects
HA NOI (VNS)- While the domestic property market continues to stagnate, statistics show that foreign direct investment (FDI) into real-estate projects is on the rise. According to statistics from the Ministry of Planning and Investment, Among the 18 sectors that drew foreign investments, real estate ranked second with a total of $588.11 million, making up 4.7 per cent of the country's total FDI. Mananufacturing and processing industries followed. By August, about 400 FDI property deals were concluded, worth a total of $48.23 billion. According to Savills Viet Savills said that Japanese investors were showing greater interests in Vietnamese property, expecting that it will become a medium and long–term destination for their money. Real estate company CBRE Viet Nam forecast that many huge foreign investors would seek business opportunities in the property market by the end of the year. However, there are some concerns at the massive increase of FDI into the country's property market. Reports say many foreign investors register for real estate projects, but left them fallow for years due to failure to mobilise capital from domestic sources. A property expert, Nguyen Mai, said some investors in real estate projects with registered capital of up to billions of dollars only poured parts of the amount into construction, then sold the unfinished shells to rotate capitals. He urged better management of FDI inflow into the country to ensure its efficiency. The Government recently issued Resolution 103/NQ-CP, aiming to enhance the efficiency of FDI into the country, especially the use of land for FDI enterprises. This means that localities are responsible for inspecting and classifying FDI projects that use land inefficiently. Ministries and authorities have also been asked to complete regulations on land, housing, site clearance and compensation to ensure transparency in land management and encourage both foreign and domestic investors. - VNS |
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Article 17
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