Although the real estate sector has suffered a fall in foreign direct investment (FDI) attraction, experts are still optimistic about its prospects of the sector, especially the industrial segment which is described as a bright spot.

The real estate sector ranks second in foreign direct investment (FDI) attraction in the first quarter of 2023 with US$766 million, accounting for 14.1% of total FDI.

Increasing foreign investment is expected to come to industrial, logistics properties in Vietnam, pushing the growth of the sector, according to insiders.

Vietnam’s industrial real estate sector has great potential for developing more projects related to data centres, cold storages and logistics, according to John Campbell, Associate Director, Head of Industrial Services at Savills Vietnam - the largest and most experienced real estate services company in the Southeast Asian nation.

Vietnam's resort real estate sector is set to see a fresh recovery as many foreign funds and investors are seeking suitable investment products, said experts from the real estate agency Savills Vietnam.

Investors from Taiwan (China) are particularly keen on Vietnam’s industrial, office and retail real estate, motivated by the country’s progress in improving the legal framework and substantial investment in key infrastructure, property consultancy Savills Vietnam said.

Vietnam’s retail market has seen positive signs of recovery, especially domestic demand, after COVID-19.

The recovery of tourism, especially its international segment, is seen to be the driving force for the hotel market to prosper, with improvements in both occupancy and room rates, said experts from the real estate agency Savills Vietnam.

Vietnam’s office market will continue to see an uptick in 2023 with quality supplies, according to real estate agency Savills Vietnam.

Vietnam’s real estate sector last year attracted an additional US$1.85 billion in foreign direct investment (FDI), retaining its second place among industries drawing FDI with combined investment of US$4.45 billion, accounting for 16.1% of the total FDI poured into the country, according to the Ministry of Construction.