The real estate sector ranked second in FDI attraction in 2022 with $4.45 billion, or 16.1 per cent of the total, according to the Foreign Investment Agency at the Ministry of Planning and Investment.

It also attracted additional FDI capital of $1.85 billion, a year-on-year increase of over 70 per cent.

Many analysts believe FDI increased sharply in the property sector because investors still have trust in Vietnam’s investment environment, particularly in real estate.

With a large working-age population and many appealing policies, Vietnam remains an attractive destination for foreign investors.

Associate Professor Dinh Trong Thinh said there are still gaps in certain segments of the real estate sector, meaning that many opportunities remain in attracting FDI. Investment in infrastructure and tourism-related real estate is considered among the segments attractive to foreign investors.

However, he went on, legal issues are still an obstacle for the real estate market. If these can be addressed, the sector will draw in more FDI capital. Administrative procedures relating to land use and management also need to be simplified to improve investment conditions.