As the Vietnam economy thrives while other parts of the region are slowing down, Savills expect that the market will continue to see further interest in all real estate sectors, with a focus on office and hospitality. This trend is driven by the increasing FDI and booming tourism, and more recently, industrial and logistics real estate development.
According to statistics of the Ministry of Planning and Investment, Vietnam’s newly-registered foreign direct investment (FDI) reached approximately US$35.88 billion in 2017, increasing by 44.4% year-on-year. By country, Japan has been leading with nearly US$9.11 billion, followed by Korea and Singapore at US$8.49 billion and US$5.3 billion respectively. By sector, real estate has always been among the sectors attracting the most FDI in Vietnam. This has confirmed the interest of foreign investors in investment and business opportunities in the Vietnam real estate market.
South Korea, Japan, Singapore, Taiwan and Hong Kong, all of which are member economies of the Asia-Pacific Economic Cooperation (APEC), have led the way in foreign investment. They have brought to Vietnam not only the capital but also their expertise, knowledge and global experience. Their investment expansion has played a key role in helping Vietnam become one of the fastest growing economies in the region, which proves the importance of APEC to Vietnam.
For foreign investors entering Vietnam, it is important that they can make clear comparisons between Vietnam and other countries such as Indonesia, or more developed markets like Singapore and Hong Kong. To make this comparison, transparent information is essential and becomes a key part of the decision-making process. Hence, local developers will achieve much more attractive pricing for their projects and will dramatically increase the chances of successfully closing a deal.
More than ever, opportunities are there to be grasped and acted upon strategically, with a stronger legal framework and a rapidly growing economy set to support investors in their decisions. We hope that the government will support investors by creating a healthy business environment, with clear and transparent investment policies so that the market can grow sustainably over the years to come.
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