The Vietnamese government has identified attracting more foreign direct investment as a solution to problems troubling the real estate sector.
Resolution 02/NQ-CP on socio-economic development, passed Monday, targets resolution of problems and fair, sustainable development of the real estate market.
Apart from FDI, the resolution mentions the need to narrow the gap between real estate demand and supply as also developing suitable social and affordable housing properties.
Other overall development orientations mentioned in the resolution include the application of technological advancements; industrial sector reform with particular focus on the semiconductor industry; agricultural reform with particular focus on green and circular development; sustainable tourism growth; enhanced implementation of public investment projects; and more progress on the reform of state-owned enterprises (SOEs) as approved.
The government has also asked relevant authorities to review and update legal frameworks to facilitate sustainable growth of several sectors including corporate bonds, real estate, science-technology, energy, and human resources.
Registered foreign direct investment (FDI) in Vietnam reached $36.6 billion in 2023, up 32.1% year-on-year, the highest ever growth, according to the Ministry of Planning and Investment. FDI disbursement increased 3.5% year-on-year to $23.18 billion, the ministry reported.
The manufacturing-processing sector topped the registered FDI chart with $23.5 billion, or 64.2% of the total, up 39.9% year-on-year. Real estate sector was second with $4.67 billion, 12.7% of the total.