Vietnamese real estate continues to entice foreign investors
In response to recent media reports, Matthew Powell, director of Savills Hanoi, emphasized that the nation continued to record positive economic growth last year and became an ideal destination for the shift of value chains in Asia.
Furthermore, a survey conducted by Savills Vietnam revealed that foreign investment in the local real estate market faced various hurdles due to a combination of the COVID-19 pandemic and incomplete legal procedures.
Despite this, real estate remains a bright spot for FDI attraction this year, with three segments capturing the most attention from international financiers, including residential real estate, office real estate, and industrial real estate.
The representative of Savills Hanoi predicts that demand for offices will enjoy strong growth moving forward.
He notes that the country represents a crucial target market for multinational companies, especially with regard to those operating in sectors such as technology, financial services, and life insurance.
Due to domestic and international businesses tending to make use of high-quality office space, there is great potential for the development of the office segment moving forward, Powell believes.
With regard to factors which attract foreign investors to the property market, he said that the domestic investment environment has significantly improved, in addition to some advantages in relation to political stability and capital management policies, along with a high quality and dynamic workforce
Moreover, the Government also grants opportunities for foreign investors who are keen to get involved in land auctions, with this being achieved by legal barriers gradually being removed.
However, foreign financiers outline that a number of challenges continue to exists, such as the quality of investment and inadequacies in infrastructure, which has led to numerous difficulties in accessing materials and transporting products.
Powell therefore underscored the importance of forming a clear strategy and a solid financial plan for foreign investors, adding that the country is in need of solutions linked to Industry 4.0 to implement smart and high-quality projects which can draw more financiers in the future.