HCM CITY: 46.8 PERCENT OF FDI GOES TO PROPERTY SECTOR

Real estate was the most attractive sector for foreign direct investment (FDI) in Ho Chi Minh City in the first four months of the year with 164.58 million USD, or 46.8 percent of total FDI.

According to the municipal Department of Planning and Investment, the British Virgin Islands was the largest investor by pouring 71.59 million USD into the sector, accounting for 43.5 percent of realty investment. The Republic of Korea came second with 19.5 percent, followed by Japan (10 percent), Singapore (5.7 percent) and China’s Hong Kong (3.4 percent).

In the four-month period, foreign businesses bought shares and contributed capital to state-owned enterprises, with total capital mounting to 1.83 billion USD, up 30.6 percent year on year. The realty sector was the largest recipient at 24 percent of the total.

Experts said foreign cash flow to the sector will increase in the near future, especially after Chairman of the municipal People’s Committee Nguyen Thanh Phong said at the recent investment promotion forum that the city is seeking foreign investment in 29 urban development projects, including several condominium projects.

Chairman of the HCM City Real Estate Association Le Hoang Chau said foreign investment in infrastructure and urban area development improves the local transport system and speeds up urbanisation rate.

However, local authorities should work to put forth investment procedures and shorten time for land clearance so the projects can be carried out soon.

Meanwhile, Director of the municipal Department of Planning and Investment Le Thi Huynh Mai said administrative reform is a key to facilitate investments of foreigners.

Source: VIR