ASEAN KEY DESTINATIONS
Property sector FDI rises in 2014
Viet Nam will welcome a wave of foreign direct investment (FDI) capital in the real estate tourism sector.
Bui Ngoc Suong, acting chairman of the Viet Nam Tourism Property Association (VnTPA), told online newspaper bizlive.vn that real estate tourism has been a special sector. Developers have to invest in both property and high-quality services.
Statistics from the Ministry of Planning and Investment showed that the country attracted US$6.85 billion in FDI in the first half of the year.
The FDI poured into the property sector was $692.3 million, a 65 per cent increase year over year, and accounting for 10 per cent of the total.
Suong said FDI in the sector was mainly from international tourism groups and tour operators, such as from Russia, Japan and South Korea.
For example, the central Khanh Hoa Province received two FDI tourism projects, namely the $300 million Alma and $89 million Flowers.
Sharing his opinion, Robert McIntosh, Executive Director, CBRE Hotels, Asia Pacific, said Viet Nam had received big investment projects in the hotel and tourism sector since the middle of last year.
He said this meant that foreign investors were attracted by the investment opportunities in Viet Nam.
However, the country's tourism industry had relied on the potential of its long and beautiful coastline, but had not done enough to help its development, he said.
He added that the sector needed synchronised investment while ensuring transparency on information, policies and the business environment.
Vietnamese enterprises should promote joint-venture models in the sector to learn from the management and operational experiences of foreign investors. This could help Viet Nam's tourism sector to join the industry's global network.
CBRE's survey based on views and prospects of private investment in Viet Nam showed that the property, tourism and hotel sector comes second in attracting investors, after the retail, food and beverage sector.
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