Upbeat about Vietnam's residential property market

IN the first nine months of 2016, foreign direct investments (FDI) disbursed into Vietnam increased by 12 per cent year on year to US$11 billion. Singapore is the second-largest investor after South Korea. Singapore companies accounted for US$1.85 billion or 16 per cent of disbursed FDI. Over the last four years, Singapore's investment into Vietnam has increased from US$1 billion in 2012.

After the manufacturing and processing industries, the real estate sector is the second-biggest recipient of foreign investments. In the last two years, Singapore real estate companies have invested close to US$1 billion in Vietnam.

Vietnam is one of the fastest growing countries in South-east Asia. In the first half of 2016, Vietnam's gross domestic product (GDP) grew by 5.5 per cent and is expected to grow 6-6.5 per cent in 2016 to 2020. The young and educated population is a key driver of this growth. The World Bank expects Vietnam's urban population to grow by 2.4 per cent per annum until 2025, the highest in South-east Asia.