News roundup: Vietnam’s property market to attract more investments, plus more news

For PropertyGuru’s real estate news roundup, Vietnam’s real estate market is widely expected to attract more investment in the near future. In other headlines, foreign direct investments (FDI) net inflows went up by 23.1 percent in March in the Philippines. Chinese President Xi Jinping said the ruling Communist Party was planning and implementing “major” reforms to be announced at the Third Plenum to be held mid-July.

Vietnam’s property market sees many driving forces for growth

Vietnam’s real estate market is widely expected to attract more investment in the near future due to many important driving forces, according to economist Can Van Luc.

In particular, Luc said, from the second quarter of this year, the real estate market has regained growth momentum due in part to amendments to real estate market laws that will effect from 1st August.

The Land Law, Housing Law, Real Estate Business Law, and Credit Institutions Law coming into effect will promote the recovery of the real estate market as corporate bonds and financial or banking activities become healthier and more sustainable, Luc said in VietnamPlus.

The Philippines’ FDI net inflows up by 23 percent in March

Foreign direct investments (FDI) net inflows went up by 23.1 percent in March this year, the Bangko Sentral ng Pilipinas (BSP) said on 10th June.

In a report, the BSP said FDI net inflows during the month reached USD686 million from USD557 million net inflows in the same month last year. “The expansion in FDI net inflows was driven mainly by nonresidents’ net investments in debt instruments, which grew by 19.0 percent year-on-year to USD465 million from USD391 million in March 2023,” the BSP said in a PNA report.

Nonresidents’ net investments in equity capital also grew by 67.1 percent from USD94 million to USD157 million.

The central bank said equity capital placements during the month mostly came from Japan, Singapore, and the United States and were invested in manufacturing, financial and insurance, and real estate industries.

China’s Xi Jinping vows more ‘market-oriented, legal and int’l business environment’

Chinese President Xi Jinping said Friday, 28th June, that the ruling Communist Party was planning and implementing “major” reforms, ahead of a closely watched political conclave expected to put economic recovery high on the agenda.

Chinese policymakers have struggled to reignite growth since the end of strict COVID-19 pandemic health curbs in late 2022. The world’s second-largest economy is beset by a debt crisis in the property sector, persistently low consumption and high youth unemployment.

According to an HKFP report, Xi has touted the promise of significant reform several times this year. The government has already enacted measures in key sectors such as real estate to address critical issues.

It was announced on Thursday, 27th June, that the delayed Third Plenum — a meeting historically watched for signals on economic policy direction — will take place in Beijing in mid-July.

The Property Report editors wrote this article. For more information, email: [email protected].