Foreign investment into real estate drops 61% five months of 2023

Quynh Nhu Wednesday | 05/31/2023 11:29

Particularly, registered FDI in real estate in the first 5 months of this year decreased sharply compared to the same period last year. Photo by Vietnambiz.

Foreign investors registered to inject $1.16 billion into the real estate sector in the first 5 months of 2023, down 61%, according to data from the Ministry of Planning and Investment.

With almost $1.16 billion in registered FDI capital, the real estate industry placed third overall and accounted for nearly 11% of all FDI capital.

At almost $10.86 billion as of May 20 (including newly registered capital, adjusted signing, and value of capital contribution and share purchase by foreign investors), foreign investment registered in Vietnam was down 7.3% from the same time the previous year.

Since April, the real estate market has dropped from second to fourth place among industries most likely to receive investment from outside. On the other hand, the banking and finance sector comes in at number two. Demand in the real estate market remains low, and capital inflows have not increased.

According to data compiled by the General Statistics Office, the number of newly incorporated real estate businesses in the first five months of 2023 was 1,744, a drop of more than 61% from the same period in 2022. There have been 554 business closures, an increase of over 30% from the previous year.