“Trends in Cash Flow into Real Estate in 2020” was the main theme of the annual Vietnam Real Estate Forum hosted by Vietnam Economic Times on December 19 in Hanoi with the participation of State management agencies, experts in the fields of economics, finance, and real estate, and enterprises operating in these fields.
According to the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment, FDI capital into real ranks second, accounting for nearly 30 per of the total. Analysts added that Vietnam’s real estate sector attracting foreign investment would help standardize the market.
Ms. Nguyen Hong Van, Hanoi Market Manager at JLL Vietnam, told the gathering that free trade agreements (FTAs) were a good sign for capital inflows into Vietnam. “The industrial real estate market is forecast to be a heated segment, attracting much attention from enterprises,” she said. “Many companies want to cut costs and move factories to Southeast Asia and the price of land for industrial real estate is still cheap in Vietnam, so the segment still has a great deal of potential to develop in the future.”
Economist Le Xuan Nghia said any impacts on the real estate market in 2020 would be positive because the global economy and global trade could recover. “In recent years, global trade has plummeted but will recover by 2020 and impact on investment inflows,” he explained.
According to an analysis by economist Can Van Luc, Chief Economist at BIDV, capital flows into the real estate market in 2019 and 2020 have been and will be positive.
Dr. Tran Kim Chung, Deputy Director of the Central Institute for Economic Management (CIEM), said Vietnam’s real estate market is in a transition stage of development in the 2018-2021 period, and is entering a stage of financialization. “However, it is important to pay attention to three factors that will affect the market: slow disbursement of public investment; securities not developing sufficiently to drive the real estate market; and private investment in infrastructure being a positive sign in the long-term, determining the development of the real estate market,” he said.