Real Estate Industry in Vietnam
The real estate industry is a critical sector of our economy. It has a huge multiplier effect on the economy and therefore, is a big driver of economic growth. It is the second-largest employment-generating sector after agriculture, growing at a rate of about 20% per annum. The last two decades have witnessed a growth in foreign direct investments (FDI) in the real estate sector in most countries, especially who are Organization for Economic Co-Operation and Development (OECD) countries.
It is evident that FDI in the real estate industry may improve economic growth in recipient economies. FDI in real estate industry can create major inflows of funds that can enhance domestic investment to achieve a higher level of real estate development. FDI can certainly bring in the funds at reasonably cheaper rates, besides new ideas and technologies, which would enhance the efficiency of the construction industry. It can also lead to increased competition levels among the local developers, in terms of price, quality and timing.
The potential of growth and contribution of the real estate industry to the GDP is tremendous, especially in India. And in Vietnam, the real estate sector has been attracting the second-largest portion of international investment inflows among the Vietnamese economic sectors over the past years and the country is expected to remain one of the world’s most attractive markets for foreign developers in the years to come.