Despite a modest influx of foreign direct investment (FDI) into Vietnam’s real estate sector since early 2024, Savills Vietnam identifies a positive trend in the significant rise of FDI directed towards high-tech manufacturing.
Recent figures from the General Statistics Office (GSO) indicate that total registered FDI in Vietnam reached $24.78 billion by late September, reflecting an annual growth of 11.6%. The southern region, particularly cities and provinces like Ho Chi Minh City, Ba Ria-Vung Tau, Binh Duong, Dong Nai, and Ninh Thuan, has emerged as a focal point for FDI, thanks to its robust infrastructure, stable workforce, and proactive investment promotion strategies.
Economists attribute this influx to companies diversifying their supply chains and relocating production from China, where labor and production costs have become less competitive. Vietnam’s strategic positioning in Southeast Asia enhances its appeal as an alternative manufacturing hub.
Experts at Savills Vietnam emphasize that this shift not only brings substantial investment capital but also boosts production capacity, generates quality jobs, and fosters the development of supporting industries. Consequently, Vietnam is transitioning from a low-cost investment destination to a high-tech manufacturing hub with enhanced value-added production capabilities.
The increase in FDI in the manufacturing sector is positively impacting various real estate segments, including office spaces, serviced apartments, and industrial properties, as demand continues to rise.
Alex Crane, Executive Director of Knight Frank Vietnam, highlighted the ongoing development and leasing of ready-built factories as a promising trend. “This provides tenants with more options as they view Vietnam as a suitable destination for investment or business expansion,” he noted.
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