Real estate accounts for 7.6% of Vietnam economy

Real estate industry accounted for roughly 7.62% of Vietnam’s gross domestic product (GDP) in 2019, information has been released by the Vietnam National Real Estate Association (VNREA).

Real estate sector becomes more important in Vietnam's economy. Photo: Pham Hung/Kinhtedothi

The percentage is likely 13.6% if land is included, VNREA said in a research released last week.

In terms of assets, real estate likely accounted for 20.8% of the total assets of Vietnam’s economy in 2020. The percentage is equivalent to US$205.26 billion out of the country’s total assets at US$986.82 billion in 2020.

The ratio is forecast to reach 21.2% or US$462.7 billion in 2025 and 22% or US$1.23 trillion by 2030.

The research, which is an independent scientific study, showed that real estate has impacted on 40 important economic sectors in Vietnam, mostly construction, manufacturing, tourism, lodging and restaurant, finance and banking.

In terms of job attraction, real estate is just behind tourism and manufacturing and ahead of agriculture, forestry and aquaculture.

Commenting the research, economist Vo Tri Thanh, member of the State Bank of Vietnam’s Financial and Monetary Policy Consultation Council, said it has prioritized policies that should be put into practice, greatly contributing to the healthy and sustainable development of real estate sector.

Nguyen Manh Ha, deputy head of VNREA, emphasized the role of real estate in the country’s economy, listing it the most important industry in many countries.

VNREA plans to submit the research and recommendations to the government, the Central Economic Commission, the National Assembly’s Economic Committee, the Ministry of Construction, the Ministry of Finance, the Ministry of Natural Resources and Environment, and related agencies for the long-term policy making toward real estate sector.