VIETNAM – Property sector ranked second among business categories that attracted Foreign Direct Investment (FDI) in the first six months of the year, according to the Foreign Investment Agency (FIA). The Vietnam real estate sector had twenty-five licensed projects during that time brought in a total investment capital of $604.8 million. This accounted for 5.3 percent of the whole FDI registered capital.

Midtown, developed by a businessman in the Cayman Islands, has been identified as the most noteworthy project with a registered capital of $225.6 million. It was the biggest project licensed in the past six months.

In recent months, merger and acquisition deals in the field have been announced.

On the other hand, Keppel Land signed a provisional investment contract to acquire 40 percent of stakes in Empire City. Said company would allot $1.2 billion to construct offices, retail area, a complex of apartments and an 86-storey tower in Thu Thiem new urban area located at HCM city.

Creed Group of Japan took part in the capital for the 11.25-hectare River City project in District 7. Twelve apartment blocks with shops, offices, and apartments would comprise the VND12 trillion worth of projects.

Meanwhile, Sakkara Group’s subsidiary Australian Sapphire JSC, announced that they seek for medium and large scale apartment, office and housing projects in Vietnam.

Singapore has flowed investments in the Vietnam real estate. They have 81 projects with a total capital of $10.9 billion or 30 percent of Singapore’s total investments in Vietnam.

Reasons for Singaporean investments are Vietnam’s real estate and tourist attractions, noted by Deputy chair of VCCI Doan Duy Khuong.

Keppel Land is considered a pioneering investor in Vietnam while CapitaLand is owned by investors of the second generation who landed in Vietnam in the early nineties. Mapletree and Semcorp are other well-known Singaporean investors in Vietnam.

As per Singaporean Real Estate Brokerage chairman Jeff Foo, the investors’ momentum was distracted due to Singapore government’s cooling measures. As a result, Singaporean investors tried to find opportunities in other markets such as Vietnam real estate, as they find new condos for sale too expensive.

Read More: Singapore property news