Savills Vietnam: industrial property, ready-built factories remain top choice

Industrial property and ready-built factories remain the top choice of investors due to high demand, said experts from Savills Vietnam.

They said in the third quarter, the Vietnamese economy still suffered a negative impact of the fourth pandemic wave. Data from the General Statistics Office showed that the country’s gross domestic product (GDP) only moved up 1.42% annually in three quarters due to prolonged social distancing nationwide, resulting in supply chain disruptions and suspension of factories.

However, the Ministry of Planning and Investment reported that foreign direct investment in three quarters still rose by 4.4% to nearly US$22.15 billion year-on-year. Merger and acquisition deals involving real estate development were also recorded.

The northern provinces of Bac Giang and Hung Yen approved industrial parks covering 800ha and 193ha, respectively. According to the Ministry of Natural Resources and Environment, the area of industrial land will increase by 115,000ha by 2030 compared to 2020.

Several new public infrastructure projects are also underway.

Managing Director of Savills Vietnam Neil MacGregor said infrastructure investment is important to open new markets, thus meeting demand for real estate investment among the growing middle-income class in Vietnam.

He added that as economic recovery could take years, it is good time to buy quality products, especially in major cities and resort destinations.