The Business Registration Management Agency (under the Ministry of Planning and Investment – MoPI) said, in 2015, the number of newly registered businesses in the real estate sector attained the highest growth in sectors, business sectors with an increase of 86.2 percent.
Reporting about the new registration situation of businesses, the Agency confirmed that: real estate is the sector that had the highest number of newly registered businesses with 86.2 percent, followed by businesses in agriculture, forestry and fisheries and businesses in arts and entertainment with over 50 percent.
Another noteworthy point is the number of businesses operating in real estate sector having to cease operations or dissolve due to difficulties also fell sharply compared with the general situation of a few years ago.
Specifically, nearly 9,500 businesses completed the procedures on dissolution and termination of business activities in 2015, down 0.36 percent year-on-year. However, the number of businesses operating in real estate sector falling into this situation decreased 26.8 percent compared with last year.
As per many real estate experts, the market recovery, the number of property businesses withstanding through difficult period and accelerating investment; the strong increase in number of businesses that went back to operation in real estate sector was attributed to support policies on credit loosening and policies allowing foreigners to own houses as well as the newly effective Law on Housing, Law on Investment with many mechanisms to attract investment, ownership for foreign investors in Vietnam.
Besides, the recovery of a part of real estate businesses was related to the effectiveness of foreign direct investment (FDI) attraction as well as the amount of remittances poured into the property market, helping the market to increase the supply and has more diversified housing needs.
The year 2015 witnessed the rise in attracting FDI of the real estate sector when the FDI in this sector ranked the third among sectors that attracted the highest FDI with nearly $2.4 billion (reckoning for 10.5 percent of the total FDI in Vietnam).
Also in 2015 and the following years, the policy on allowing foreigners and overseas Vietnamese to purchase and own houses in Vietnam also helped remittances into real estate to soar, and market demand to increase.
Currently, statistics show that, around $11-12 billion of remittances are transferred to Vietnam each year. The amount of remittances poured into real estate in the previous years was not lower than 10 percent. In 2015 and the following years, the money expected to be poured in here will be higher due to the impact from the above mentioned policies.
Source: Dan Tri
Key words: Real estate sector, leads, the establishment, new businesses
