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Real estate segments benefit from surging FDI inflow in production
Despite a modest influx of foreign direct investment (FDI) in the real estate sector since early 2024, Savills Vietnam sees a silver lining in the surge of FDI into high-tech manufacturing.
The latest data from the General Statistics Office (GSO) revealed that total registered FDI in Vietnam reached 24.78 billion USD as of late September, marking an annual increase of 11.6%.
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At Phu My 3 Specialised Industrial Park. |
The southern region has been a magnet for FDI, particularly cities and provinces with robust infrastructure, a stable workforce supply, and proactive investment promotion, such as Ho Chi Minh City, Ba Ria-Vung Tau, Binh Duong, Dong Nai, and Ninh Thuan provinces.
Economists attributed this trend to companies seeking to diversify their supply chains or relocate production lines from China, where labour and production costs have become less competitive. Vietnam's strategic location in the heart of Southeast Asia makes it an attractive alternative.
Experts from Savills Vietnam said this shift brings substantial investment capital, enhances production capacity, creates quality jobs, and develops supporting industries. Consequently, Vietnam is evolving from a low-cost investment destination into a hi-tech manufacturing hub with greater value-added production.
The surge in FDI within the manufacturing sector is having a ripple effect on various real estate segments, including offices, serviced apartments and industrial properties, as demand continues to grow.
Alex Crane, Executive Director of Knight Frank Vietnam, noted that the continued development and leasing of ready-built factories is a positive sign.“This provides tenants with more options as they consider Vietnam a suitable destination for investment or business expansion”, he said.
Vietnam has so far attracted 3,500 foreign direct investment (FDI) projects in the garment - textile industry with a combined value of 37 billion USD, according to the Vietnam Textile and Apparel Association (VITAS).
About 14.15 billion USD worth of foreign direct investment (FDI) was disbursed in the first eight months of this year, up 8% year-on-year, marking the highest for an eight-month period over the past five years, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Foreign direct investment (FDI) from China has continued to flow into Vietnam, according to the Ministry of Planning and Investment.
Attracting foreign direct investment (FDI) has been one of the bright spots in Vietnam’s economic landscape in the first half of the year. Alongside the continued increase in new investments, many ongoing projects in Vietnam are also expanding their production scales, contributing to the overall capacity enhancement of the economy.
With positive results seen in the first half of this year, foreign direct investment (FDI) inflow in 2024 is hoped to hit 40 billion USD in the whole year, contributing to boosting the country’s growth.
The inflow of foreign direct investment (FDI) in Vietnam has come with many projects using green and clean modern technologies. This is also the orientation of Vietnam’s foreign investment cooperation in this new period.
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