Vietnam's Real Estate Sector Sees Breakthrough with $5 Billion Investment in 2007

Vietnam's real estate sector experienced a significant surge in investment in 2007, with a total of $5 billion in committed capital, accounting for 24.6% of the country's foreign investment. This growth positioned real estate as the second-largest sector in the country, after industrial production. The Ministry of Planning and Investment's Department for Foreign Investment reported that the majority of these projects focused on Hanoi and Ho Chi Minh City, catering to the increasing demand for housing and office spaces.

Key Takeaways:

• The total committed capital in Vietnam's real estate sector in 2007 was $5 billion, representing 24.6% of the country's foreign investment.
• Real estate investment surpassed industrial production, becoming the second-largest sector in the country.
• Hanoi and Ho Chi Minh City were the primary locations for real estate projects, driven by increasing demands for housing and office spaces.
• Notable projects in Hanoi included the Hanoi Landmark Tower, a $1 billion development by Keangnam group, and a luxury hotel project by Riviera group, costing $500 million.
• Other notable projects in Ho Chi Minh City included Asiana Plaza, Avalon Saigon Apartments, and Indochine Park Tower.
• Vietnam's real estate market attracted investment from foreign enterprises, including those from the US, South Korea, Australia, China, and Singapore.
• India's TATA group plans to develop properties for office leasing in Thu Thiem district, Ho Chi Minh City.
• The Prime Minister has assigned the Construction Ministry to establish a business group on urban and housing development to regulate the real estate market.

Statistics:

• Total committed capital in Vietnam's real estate sector in 2007: $5 billion
• Foreign investment in real estate sector as a percentage of total foreign investment: 24.6%
• Total industrial production: approximately $9 billion
• Investment in building hotels and trade centers in Hanoi: nearly $2 billion
• Hanoi Landmark Tower project: $1 billion
• Luxury hotel project by Riviera group: $500 million
• Upgrade project for Yen So park: estimated investment capital of nearly $2 billion

Sources:

• "Hanoi, Jan 2 Asia Pulse"
• Ministry of Planning and Investment's Department for Foreign Investment
• Director of the Hanoi Planning and Investment Department, Trieu Dinh Phuc
• General Secretary of the Ho Chi Minh City Real Estate Association, Do Thi Loan
• CEO of the Capital Land Group, Chen Lian Pang
• Construction Ministry
• Vietnam News Agency (VNA)