The Vietnam Institute of Real Estate Studies (VIRES) has said that investors in the country’s north are increasingly interested in the southern real estate market. They view the southern market as a “promised land”, especially Ho Chi Minh City and neighboring provinces. Recent large-scale projects developed by reputable investors and rising interest in general, especially from customers in the north, have boosted the real estate market in some southern provinces.
There have been many M&A deals in Vietnam’s real estate sector in the opening months of 2022, but foreign businesses continue to face barriers to involvement in regard to laws or differences in business practices.
The real estate sector accounted for the second-largest proportion of bond issuances in the second quarter, with 21.2 per cent, totaling VND28.49 trillion ($1.23 billion), up 72.8 per cent compared to the previous quarter. The sector paid the highest interest rate, at up to 7.37 per cent.
Vietnam’s stock market is one of the fastest growing in the world, but the high proportion of stocks in major industries makes retail investors cautious. The banking sector accounts for 34.55 per cent and real estate 21.39 per cent, for a total of 55.94 per cent; a ratio rarely found elsewhere. To enhance the durability of the market, it is important to diversify sectors. Production and business sectors associated with science and technology should be among those driving the market.
