Vietnam remains good destination for investors: Savills
VOV.VN - Amid remarkable changes occurring in the global investment trend across many important real estate segments, the nation remains one of the destinations capturing great interest from investors thanks to its positive recovery capacity and the flexibility of the country’s economy, according to a recent report by Savills Vietnam.
Savills highlighted several large-scale merger and acquisition (M&A) deals taking place in the nation in the second quarter of the year, including Everland Opportunity IX’s purchasing of three hotels in Vietnam and Indonesia from Strategy Hospitality Holdings Ltd. with US$106 million.
Meanwhile, Keppel and Keppel Vietnam Fund acquired a 49% stake in two residential projects in Thu Duc city in Ho Chi Minh City, with the site consisting of an area of 11.8 hectares from Khang Dien Group with US$136 million. THT Development Co. Ltd. also transferred 1.13 hectares of land in Starlake City in Hanoi to CMC Technology Group to build an innovation centre with an investment of US$76 million.
Troy Griffiths, deputy managing director of Savills Vietnam, stated that despite short-term pressures on inflation, as well as a decline in production and export, the country’s medium-term outlook remains positive. The reduction in interest rates prescribed by the State Bank of Vietnam (SBV) has contributed to stimulating economic growth by reducing the cost of capital for borrowers and credit institutions.
FDI inflows into the nation are showing many promising opportunities. Although the total FDI has decreased, newly-registered projects and capital has increased sharply, especially in the manufacturing sector. Improvements in terms of infrastructure development, administrative reform, and investment in innovation hubs throughout the country are also contributing to making the market more attractive to international investors, said Griffiths.
The SBV has therefore lowered interest rates in support of growth, whilst FDI inflows remain sound. New regulations supporting debt restructuring will be a positive factor for real estate and will serve to boost transparency, which is positive for sustainable growth in the long term, he added.
Thomas Rooney, senior manager of Industrial Services at Savills Hanoi, said that the Purchasing Managers' Index (PMI) and the Index of Industrial Production in the country both had positive increases in the first months of the year. The market continues to record large investment deals and business activities are currently bustling. However, the present global economic situation has led to a decline in aggregate demand, with Rooney noting that the State needs to solve the problem in a timely manner and in combination with preventive measures to promote economic development.
The official stated that until the end of the year, transactions will continue to take place and the supply still be abundant. As for the supply of ready-built factories, the attraction of localities such as Hai Phong will increase in the eyes of investors as well as tenants.
Furthermore, Bac Ninh represents an ideal choice for domestic and foreign tenants, as well as investors in developing ready-built warehouses, as the province has risen to the third place in terms FDI attraction, he noted.
In general, the shift to the global supply chain has created plenty of new opportunities and also brought about certain challenges. Therefore, the Vietnamese market must grasp trends and access opportunities fully and quickly to allow it to make the best use of it and create a breakthrough, according to Savills.
