Foreigners pour total of US$11.5 bil into construction
Since the Foreign Investment Law was passed in 1987, Vietnam's construction sector has received US$11.5 billion for 1,196 foreign direct investment (FDI) projects. The law was passed a year after Doi Moi (Renewal) policy was announced in 1986.
The sector has come third in attracting FDI capital nationwide, accounting for 6.5% of the projects and 4.5% of investment capital.
The average capital for a construction project in the 29 years since 1987 has been US$9.64 million, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
The Republic of Korea was the leader with 587 projects, worth US$2.4 billion. This accounted for 49% of the nation's total construction projects and 20.9% of investment capital.
Singapore ranked second with 101 projects totalling US$1.9 billion, followed by Taiwan with 109 projects worth US$1.5 billion.
Other large foreign construction investors included Japan, Malaysia, British Virgin Islands and Hong Kong.
HCM City was the city that attracted the most FDI for construction. It has more than 377 projects and US$3 billion investment capital, accounting for 31.5% of projects and 26.5% of investment capital.
Hanoi was second, attracting US$2 billion in capital for 527 projects, accounting for 44% of projects and 17% of investment capital.
The northern city of Haiphong was third with 18 projects and US$1 billion in capital, accounting for 1.5% of projects and 9% of investment capital.
Other provinces involved included the southern province of Ba Ria - Vung Tau, Binh Duong, Dong Nai and the northern province of Quang Ninh.
In term of investment forms, 49% of construction projects in Vietnam are 100% foreign invested projects, 43% are joint ventures, and the rest involve joint stock companies and business co-operation contracts.
The capital inflow was expected to rise in the near future as new open economic policies take effect, especially the revision of laws involving construction, investment and enterprises, said FIA.
These revisions would create more favourable conditions for foreign investors to join Vietnamese construction and real estate market, added the agency.