THE RELATIONSHIP BETWEEN FDI GROWTH AND PRIVATE CONDOMINIUM MARKET IN HANOI

Abstract

Since an economic reform known as “Doi Moi” in 1986, Hanoi has experienced rapid economic and social development. Consistent economic growth coupled with stable political conditions and growing foreign direct investments have been the key drivers in attracting both foreign and domestic developers to the property market, especially the private condominium sector.

This study provides a detailed analysis of the private condominium market in Hanoi, including history of the market, demand and supply analysis as well as the surge of foreign developers as a result of growth in FDI. Furthermore, correlation and multiple regression analysis were conducted with data of private condominium from the period of 2002 to 2010 to examine the linkage between FDI inflow into Hanoi and the private condominium market. The result indicated that there is a positive relationship between FDI growth and the supply of condominiums.