Real estate sector attracts nearly $2.4 bln in FDI in Q1

The Ministry of Construction’s report on housing and the real estate market for Q1/2025 indicates that, by the end of March 2025, total registered foreign direct investment (FDI) in Vietnam reached nearly $10.98 billion, marking a 34.7% increase compared to the same period last year.

Disbursed capital amounted to approximately $4.96 billion, up 7.2% year-on-year. Of this, newly registered capital accounted for $7.11 billion, up 49.2%; adjusted capital reached $1.68 billion, showing a slight increase of 4.2%. Notably, disbursed FDI was estimated at $4.96 billion, a 7.2% increase.

The real estate sector ranked second, after the manufacturing and processing sector, attracting more than $2.39 billion in total investment, accounting for 21.8% of total registered FDI—an increase of 44.1% year-on-year.

The ministry explained that Vietnam's real estate market has become increasingly "attractive" to foreign investors due to the country’s strategic geographic location at the heart of Southeast Asia, its proximity to major markets such as China, Japan, South Korea, and ASEAN, and its young, dynamic workforce with strong learning adaptability and technological proficiency—all at lower labor costs compared to many countries in the region.

Furthermore, investors have positively assessed Vietnam’s consistent efforts to improve the Investment Law and Enterprise Law to support foreign investors. As a result, numerous industrial parks and export processing zones now offer tax incentives, long-term land leases, and increasingly streamlined, digitized administrative procedures.

"The FDI inflows into Vietnam’s real estate sector in Q1/2025 have achieved remarkable results in both growth rate and investment quality. This is a positive signal reflecting international investors' confidence in Vietnam’s market while serving as a crucial driver for the recovery and development of urban, industrial, and tourism infrastructure," the ministry stated.