Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam expected to remain topflight SEA industrial realty destination: experts



Vietnam expected to remain topflight SEA industrial realty destination: experts

Content image - Phnom Penh Post
The Van Trung Industrial Park in northern Vietnam’s Bac Giang province. VIETNAM NEWS AGENCY

Vietnam expected to remain topflight SEA industrial realty destination: experts

Vietnam will remain one of the best investment destinations for industrial real estate in Southeast Asia for the next 10 years and beyond, experts said at a conference in Ho Chi Minh City last week.

Speaking on the sidelines of the “Industrial Real Estate: Filling in and Filling up” conference, Kenny Gaw, president and co-founder of Gaw Capital Partners, an equity fund management company, told Viet Nam News: “Vietnam is expected to continue moving up the value chain thanks to its stable growth, export-oriented economy, a highly skilled workforce and strategic location.”

“With favourable incentives, competitive labour costs, a stable political environment, a positive economic outlook and free trade agreements, Vietnam has also become favoured by foreign investors moving out of China.”

Furthermore, Vietnam is experiencing a golden population structure, with 60 per cent of its population very young, productive and hardworking.

It also boasts a strategic geographical location in the heart of Southeast Asia, which is home to several large and vibrant economies, he said.

It is particularly involved in Trans-Pacific Partnership negotiations, Gaw noted.

“Vietnam’s upcoming industrial property evolution will be the foundation for attracting additional foreign direct investments [FDI],” he added.

The nation’s economic growth, accompanied by the boom in modern retail trends like e-commerce and waves of foreign investment in manufacturing facilities in Vietnam, demand for high-quality industrial property will continue to rise, conference participants said.

The establishment of new industrial zones and key industrial projects beginning operations early this year augur well for the sector.

Economists, meanwhile, have expressed confidence that the Vietnamese economy will bounce back this year.

Though the fourth wave of outbreak has profoundly impacted the manufacturing sector in Ho Chi Minh City, Vietnam’s commercial hub, the country remains a popular foreign investment destination.

FDI should pick up this year as countries reopen around the world and learn to adapt to new normal conditions.

“The increasing number of large-scale FDI projects expanding investment capital shows foreign firms are feeling settled with the overall economic recovery initiated since late last year,” Gaw said.

He noted that “Vietnam has excelled in reeling in the big fish in electronics, footwear, and clothing in recent decades. Productive labour costs, reliable infrastructure, and a smooth bureaucratic process have drawn the attention of major brands such as Samsung, Foxconn, Nike, Adidas, Gap, Levis, Luxshare, Pegatron”.

Mai Huu Tin, president of U&I Investment Corp and a member of the Private Sector Development Committee, said the industrial real estate sector is considered a bright spot this year.

Those in the industrial park business benefit from increased demand and rentals, he said.

However, with the country facing a number of environmental challenges, industrial estate developers will have to focus on green growth, several experts said at the conference.

They said Vietnam needed to conduct a comprehensive review of available resources, particularly land, as well as energy capacity, to make the most of foreign investments.

It also needs to improve human resources, build supporting industries and give preference to FDI projects that use modern technology.

In the first two months of this year, Vietnam received $2.1 billion worth of new foreign investment and disbursed $1.6 billion in public investment for respective increases of 6.8 per cent and a 4.2 per cent over the same period last year.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro