Vietnam will remain one of Southeast Asia’s top industrial real estate investment destinations for the next 10 years and beyond, experts said at a recent conference in Ho Chi Minh (HCM) City.
President and co-founder of Gaw Capital Partners, Kenny Gaw, recently spoke on the sidelines of the conference “Industrial Real Estate: Filling in and Filling up” and said Vietnam is expected to continue to climb the value chain due to its stable growth, export-oriented economy, highly skilled workforce and strategic location.
“With favorable incentives, competitive labor costs, a stable political environment, positive economic outlook and free trade agreements, Vietnam has also been favored by foreign investors leaving China.
“In addition, Vietnam experiences a golden population structure, with 60 percent of the population very young, productive and hard-working,” he said, according to the Vietnam News Agency.
Gaw said Vietnam, which is involved in the Trans-Pacific Partnership negotiations, has a strategic geographical location in the heart of Southeast Asia, which is home to several large and vibrant economies.
“The imminent evolution of industrial real estate in Vietnam will provide the basis for attracting additional foreign direct investment,” he added.
It added that economists, meanwhile, have expressed confidence that the Vietnamese economy will recover this year.
Although the fourth wave of outbreak has had a major impact on the manufacturing sector in Vietnam’s commercial hub, HCM City, the country remains a popular destination for foreign investment.
In the first two months of this year, Vietnam received $2.1 billion in new foreign investment and paid $1.6 billion in government investment for increases of 6.8 percent and 4.2 percent respectively from the same period last year.