Singapore, Malaysia among biggest investors in Vietnam
Eight out of 10 member states of ASEAN have made investments in Vietnam with a total pledge of US$56.32 billion for 2,681 projects, the Foreign Investment Agency recently reported.
The cumulative investment figure was recorded at the end of September and was up 8.6% from a year ago.
Accounting for 59% of the total inflows, Singapore topped the list, followed by Malaysia, 24%, and Thailand, 12%, according to the agency.
Singapore's pledges rose 7.9% within a year to amount to US$33.45 billion for 1,456 projects. This made the country the third largest foreign investor in Vietnam, after the Republic Korea and Japan.
With the regional economic community AEC to be established later this year, many analysts expected a strong increase in investment inflows into Vietnam's property market, news website Saigon Times Online has reported.
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| Property projects under construction in Ho Chi Minh City. Photo: Le Quan |
The growing presence of multinationals as well as small and medium enterprises will boost demands for offices and industrial properties, it said.
As of June 30, ASEAN countries had invested more than US$16.6 billion into the local property market, making it the second biggest capital magnet only after the manufacturing sector, according to the Foreign Investment Agency.
Their 97 property projects have covered almost every segment of the market from residential to industrial segments. Most are located in Hanoi and Ho Chi Minh City.
Singaporean businesses owned nearly 80% of the total projects, and accounted for 60% the total registered capital.
Some of Singaporean property developers that have already entered Vietnam are CapitaLand, Keppel Land and Mapletree.
With 16 projects with a combined investment of US$5.5 billion, Malaysia was the second biggest investor in Vietnam's property market, the agency reported.