Vietnam real estate still has many positive signs

Accordingly, despite facing many difficulties, the interest of foreign investors in the Vietnamese market in general and real estate in particular is still recorded to grow.

Data from the Foreign Investment Agency shows that as of December 20, 2023, the total registered foreign direct investment (FDI) capital in Vietnam reached nearly 36.61 billion USD, up 32.1% over the same period; both new projects and newly registered capital increased sharply. This is a very noteworthy point.

Fitch Ratings recently upgraded Vietnam's long-term sovereign credit rating to BB+ (from BB), with a stable outlook. In 2024, Vietnam's GDP growth is expected to reach 6 - 6.5%, thanks to stable FDI and the government's efforts to remove difficulties in the real estate sector, increase public investment and timely economic policies to stimulate growth.

In the fourth quarter of 2023, the market recorded a large amount of investment in real estate. The largest beverage manufacturer in Korea, HiteJinro, invested in a factory of more than 8.2 hectares, worth more than 100 million USD in Thai Binh. In addition, Deli Group Limited Company (Deli Group) from China invested 270 million USD, using a land area of about 21.2 hectares in Dai An Industrial Park expansion in Hai Duong . Hyosung Group (Korea) will build a factory producing carbon fibers and materials with a total investment of about 720 million USD in Phu My II Industrial Park, Ba Ria-Vung Tau.

Bất động sản Việt Nam vẫn có nhiều tín hiệu đáng mừng- Ảnh 1. — Vietnam's real estate market is still assessed to have many positive signals.

In the retail sector, the market also recorded vibrant activities from foreign investors. In September 2023, Lotte officially opened Lotte Mall West Lake Hanoi with an area of over ^354,000m2 . At the same time, THISO opened the third Emart supermarket in Ho Chi Minh City and plans to invest in the northern region after purchasing a 2.4-hectare land plot in the west of West Lake (Hanoi).

In the office segment, 85% of fast-growing companies in Vietnam are committed to environmental, social and governance goals. This is also a factor that leads to an increase in demand for green offices in the market. By 2026, Ho Chi Minh City is expected to welcome 300,000m2 ^of new Grade A offices such as The Nexus project or VP Bank Saigon Tower. Furthermore, more than 80% of the city's future Grade A and Grade B supply will be green. In Hanoi, from now until 2026, 15 new projects will provide more than 389,770m2 ^of office space. Grade A offices are expected to account for 86% of future supply. Typical projects include Grand Terra, Taisei Square Hanoi, Tien Bo Plaza, 27-29 Ly Thai To and projects in the Starlake area. Green office space will account for 18% of future office floor space in Hanoi.

In the last months of 2023, many major investors have launched new housing products, including The Privia project in Ho Chi Minh City, Canopy Residences and Lumière Evergreen projects in Hanoi. The next phases of Akari City and Glory Height projects also launched new products.

"The good news is that the market has recently received the approval of important laws, including the Real Estate Business Law (amended), the Housing Law (amended) and the Land Law (amended). The approval of these laws can be seen as a positive signal for the investment market next year, boosting investor confidence. The Vietnamese market with real demand for housing as well as confidence in the office and industrial real estate sectors will be the key to the start of a new cycle this year. However, we still need to wait for the sub-law documents to be able to observe clearer changes," said Mr. Matthew Powell, Director of Savills Hanoi.

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