The shift toward e-commerce due to the COVID-19 pandemic has brought challenges to Vietnam’s retail property market, according to Savills Vietnam.

Many tourism-related firms that have borrowed from banks are facing foreclosure due to the latest outbreak of COVID-19 infections.

Vietnamese property technology (proptech) firms are attracting the attention of both foreign and domestic investors keen to grab a larger share of the country’s US$500-million market.

Hanoi’s office market is said to be more attractive than its counterparts in other Southeast Asian cities and even in the Asia-Pacific region because of cheaper rentals and greater supply, according to real estate consultants Savills Hanoi.

VOV.VN - Foreign direct investment (FDI) inflows in the Vietnamese real estate sector during the first quarter of the year reached over US$600 million through 12 projects, representing a 2.3-fold increase compared to the same period from last year, according to the Foreign Investment Agency.

Surging demand, the resolution of legal hurdles and the gradual containment of the COVID-19 pandemic make the real estate industry sanguine about 2021.

The sudden increase in demand for land, factories, and warehouses in Vietnam has pushed up rental costs at industrial parks (IPs) near major cities, according to Savills Vietnam.

The prospect of busy urban areas being created around Long Thanh International Airport in southern Dong Nai province has attracted investment in the eastern reaches of neighbouring Ho Chi Minh City, which has become appealing thanks to its connectivity, standardised planning, and ideal geographical location.

Vietnam has tremendous long-term potential to become a leading international destination like Thailand or Indonesia, according to local insiders.

Vietnam has the potential to turn itself into an international resort destination that can compete with tourism powerhouses like Thailand and Indonesia, an expert from Savills has said.