Business News

New foreign direct investment (FDI) approvals in Vietnam’s real estate sector totaled nearly US$10.98 billion in the first quarter of this year, up by 34.7% versus the year-ago period. FDI disbursements reached an estimated US$4.96 billion between January and March, an uptick of 7.2%, showed data from the Ministry of Finance.

Eleven new social housing projects were completed nationwide in the first quarter, adding 4,155 social housing units to the market, according to the Ministry of Construction. These projects account for 4.14% of the annual target set by the prime minister. In addition, construction permits were issued for eight more projects with a combined 12,650 units.

HCMC plans to develop 14 new industrial parks with a total area of 3,833 hectares from now until 2033. The HCMC Export Processing and Industrial Zones Authority (HEPZA), in coordination with Binh Chanh District, held a conference on May 9 to announce the city’s industrial park development plan for the 2021-2030 period with a vision to 2050, and investment attraction strategies for 2025.

The Government has given the nod to the establishment of a National Housing Development Fund to support the construction of social homes, worker accommodations, and affordable apartments for people who are under 35 years old. Deputy Prime Minister Ho Duc Phoc chaired a meeting on April 21 to review the proposal, which was submitted by the Ministry of Construction and other relevant ministries, reported the Vietnam News Agency (VNA).

In the first quarter of this year, industrial parks in Hải Dương, including An Phát 1, Kim Thành 2 (Phase 1), Cẩm Điền - Lương Điền, Cộng Hòa, Lai Cách, Lai Vu, Phúc Điền Expansion, Phú Thái, Gia Lộc and Đại An, attracted investment projects totalling about US$419 million. Foreign direct investment (FDI) accounted for $125 million, while domestic direct investment (DDI) reached over VNĐ6.9 trillion ($270 million), according to the Hải Dương Industrial Zones Authority.

The eco-industrial park is a special model in which businesses participate in production activities to create green products and optimise resource use. This industrial park model focuses on the connection and cooperation between businesses in the same industrial park to promote symbiotic production activities, ensuring sustainability and contributing to the sustainable development of the industrial sector as a whole.

The year 2025 is expected to mark a new development cycle in the real estate market in Vietnam. According to experts, this will be a pivotal time, underpinned by a strong recovery, especially in large cities such as Hanoi and Ho Chi Minh City. With a strengthened legal framework and strong government support, the market is set for a period of stable and sustainable growth.

Industrial land rents in southern Vietnam are projected to grow by 3-7% annually, while ready-built warehouse rents are forecast to increase by 1.8% per year, according to CBRE Vietnam.