Industrial real estate to be a highlight: Analysts
Industrial real estate is expected to be a highlight in Vietnam, especially after the EU-Vietnam Free Trade Agreement comes into being, analysts have said.
Hanoi (VNA) - Industrial real estate is expected to be a highlight in Vietnam, especially after the EU-Vietnam Free Trade Agreement comesinto being, analysts have said.
FDI inreal estate fell sharply in the first quarter of this year due to the COVID-19 outbreakand made up only 3.08 percent of the total.
However,analysts said, the decline is temporary as, in fact, many foreign investors areawaiting business opportunities in the country.
Savills Vietnam Deputy Managing Director Troy Griffiths said the EVFTAdemonstrates the Vietnamese Government’s commitment to turning Vietnam into a leadingdestination in Asia’s manufacturing industry.
Bilateral trade is likely to be enhanced, triggering increases in FDI,jobs, and opportunities in all property segments, especially industrial realestate, he said.
John Campbell, Manager of Industrial Services at Savills Vietnam, saidorders from EU clients rose in anticipation of the signing of the agreement.
He explained that the EVFTA will facilitate the applicationof cutting-edge production technologies as well as personnel training,stressing that the Vietnamese Government has gradually removed business’sconcerns over feasibility, workforce shortages, and extra costs.
Industrial real estate has attracted the attention offoreign investors in Vietnam over the last three years, analysts said, due to thecountry’s economic stability and rapid urbanisation.
Vietnam is one of only a few countries worldwide to havesuccessfully contained the COVID-19 pandemic, and investors view the country anideal destination and have sought opportunities at local industrial parks andprocessing centres.
According to Su Ngoc Khuong, Senior Director of SavillsVietnam, many investors are seeking land plots with areas from 500 to 1,000 hafor industrial parks, while many producers want to expand their factories.
Given this, Hanoi, HCM City, and Long An, Binh Duong, andDong Nai provinces in the south are favourable for FDI attraction, he said.
CBRE also confirmed there is a scarcity of industrial landfor lease amid increasing demand, which has maဣde rentals soar in Hanoi and HCMCity since the beginning of this year./.
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Illustrative image (Source: internet) 
