The Vietnamese real estate sector attracted a total of USD343.7 million of foreign direct investment (FDI) in the first quarter of this year.

According to the Ministry of Planning and Investment, the figure accounted for 4.4% of the country’s total FDI capital in the first-three month period and represented an increase of 34.4% against USD239.8 million of the same period of last year.

The Vietnamese real estate sector attracted a total of USD343.7 million of FDI in the first quarter of this year.

With the figure, the property sector ranked the second among sectors in FDI attracting between January and March this year.

Nguyen Manh Ha, Deputy Chairman of the Vietnam National Real Estate Association, said that FDI foreign investors have shown greater interest in the Vietnamese real estate sector.

Last year, the sector lured about USD1.3 billion, accounting for 10% of total FDI poured into the country. The Vietnam National Real Estate Association has predicted that the market will become busier.

Among localities, Ho Chi Minh City pulled in the highest number of FDI projects in the real estate, with investment accounting for 40.9% of the country’s total in 2016.

Experts said that the property sector would be more transparent and open in 2017 as the government has further simplified administrative procedures and tightened policies on land planning.

Meanwhile, mergers and acquisitions in the local real estate market are forecasted to jump in 2017 as foreign investors look for local partners due to many factors the country’s fast-growing economy, accelerated urbanisation and expanding middle-class population with higher incomes.