Vietnam has attracted a total of USD6.28 billion in foreign investment in the first four months of this year, marking a 7.4% year-on-year increase and reaching the highest level for the same period in five years, according to data from the General Statistics Office.
Of this, the processing and manufacturing sector accounted for 78.5%, reaching USD 4.93 billion, while the real estate sector attracted USD 607.6 million, making up 9.7%. This trend is notable in the Asian region, with industrial real estate attracting significant capital inflows as investors shift their focus to new assets and economic sectors, according to data from CBRE.
Vietnam's gross domestic product (GDP) growth rate reached 5.1% in 2023 and aims to achieve a growth rate of 6.0-6.5% in 2024. With continued inflows of foreign investment benefiting from tax incentives, industrial real estate is expected to remain a strong growth area.
The increasingly improved transportation infrastructure and modernized services in industrial parks are supporting this trend. Many new industrial park investment projects have been approved and are beginning their next phase of implementation.
Commenting on the outlook for Vietnam's industrial market, CBRE's General Manager, Pei Zhuang, stated, "As a developing country, Vietnam is poised to become a center for many companies' global production chains. In particular, Vietnam has tremendous potential in developing the semiconductor industry due to its young workforce willing to innovate and undergo relevant training."
Vietnam's Deputy Minister of Planning and Investment, Doan Chung Zhong, indicated that Vietnam is continuously improving its legal framework, mechanisms, and policies to enhance the investment and business environment. Specifically, Vietnam has been establishing attractive investment incentive mechanisms for technology companies and enterprises, including the electronics, semiconductor, and chip industries.