Vietnam has also been attractive to foreign investors, owing to myriad factors such as its relatively low labour cost, the govern- ment s gradual relaxation of foreign restriction rules, and the various bilateral and regional trade agreements that will lead to lower trade barriers and greater market access for Vietnamese exports. Based on the latest official data, the total pledged FDI surged by --.- to USD--.-bn in ----, while estimated realised FDI grew by --.- to USD--.-bn. ...The real estate industry will also see growing foreign interest over the coming years, and we are forecasting FDI inflows to the sector to increase by an average --.- per annum over the coming five years. The relaxation of foreign property owner- ship rule in July ----, which allows foreigners and Vietnamese who are living abroad to purchase up to a maximum of --.- of an apartment building or --- landed property units (such as villas and townhouses) in an administrative division, will act as a catalyst to spur greater foreign demand for housing in the country. In combination with the improving prospects of the broader economy and the housing market, foreign real estate firms such as Singapore-based CapitaLand and Mapletree have - Business Monitor International Ltd www.bmiresearch.com ...The relaxation of foreign property owner- ship rule in July ----, which allows foreigners and Vietnamese who are living abroad to purchase up to a maximum of --.- of an apartment building or --- landed property units (such as villas and townhouses) in an administrative division, will act as a catalyst to spur greater foreign demand for housing in the country. In combination with the improving prospects of the broader economy and the housing market, foreign real estate firms such as Singapore-based CapitaLand and Mapletree have - Business Monitor International Ltd www.bmiresearch.com
...The low inflationary environment in Vietnam (we forecast Consumer Price Inflation CPI to average just -.- in ----) will provide ample room for the State Bank of Vietnam (SBV) to ease its monetary policy, but we expect apprehension regarding foreign exchange stability and strong economic growth momentum to temper the central bank s easing bias. As such, we forecast the monetary authority to cut its policy rate by a relatively shallow --bps to -.-- by end-----. ...As such, we forecast the monetary authority to cut its policy rate by a relatively shallow --bps to -.-- by end-----. Despite the ousting of pro-reform Nguyen Tan Dung, and the reap- pointment of conservative Nguyen Phu Trong to the General Secretary position during the CPV s --th National Party Congress, we believe that the upcoming leadership is unlikely to make dramatic changes to existing policies that have propelled Vietnam s rapid economic growth over the past few years. More importantly, the injection of new blood into the party will likely sustain crucial market reforms over the coming years, which will allow Vietnam to stay on course with its strong growth trajectory. ...As such, we maintain our forecast for Vietnam s real GDP growth to come in at -.- in ---- (from -.- in ----), which would make Vietnam one of the fastest growing economies in Asia. In particular, the country s manufacturing and real estate sectors will continue to benefit from greater foreign interest.
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