An industrial park in Bac Ninh province (Photo: VNA) Speakingon the sidelines of the “Industrial Real Estate: Filling in and Filling up”conference on March 9, Kenny Gaw, president and co-founder of Gaw CapitalPartners, an equity fund management company, told Viet Nam News: “Vietnam isexpected to continue moving up the value chain thanks to its stable growth, export-orientedeconomy, a highly skilled workforce and strategic location.”
“Withfavourable incentives, competitive labour costs, a stable politicalenvironment, a positive economic outlook and free trade agreements, Vietnam hasalso become favoured by foreign investors moving out of China.”
Furthermore,Vietnam is experiencing a golden population structure, with 60 percent of itspopulation very young, productive and hardworking.
Italso boasts a strategic geographical location in the heart of Southeast Asia,which is home to several large and vibrant economies, he said.
Itis particularly involved in the Trans-Pacific Partnership negotiations, Gawnoted.
“Vietnam’supcoming industrial property evolution will be the foundation for attractingadditional foreign direct investments,” he added.
Thenation’s economic growth, accompanied by the boom in modern retail trends likee-commerce and waves of foreign investment in manufacturing facilities in Vietnam,demand for high-quality industrial property will continue to rise, conferenceparticipants said.
Theestablishment of new industrial zones and key industrial projects beginningoperations early this year augur well for the sector.
Bouncing back
Economists,meanwhile, have expressed confidence that the Vietnamese economy will bounceback this year.
Thoughthe fourth wave of outbreak has profoundly impacted the manufacturing sector inHCM City, Vietnam’s commercial hub, the country remains a popular foreigninvestment destination.
FDIshould pick up this year as countries reopen around the world and learn toadapt to new normal conditions.
“Theincreasing number of large-scale FDI projects expanding investment capitalshows foreign firms are feeling settled with the overall economic recoveryinitiated since late last year,” Gaw said.
Henoted that “Vietnam has excelled in reeling in the big fish in electronics,footwear, and clothing in recent decades. Productive labour costs, reliableinfrastructure, and a smooth bureaucratic process have drawn the attention ofmajor brands such as Samsung, Foxconn, Nike, Adidas, Gap, Levis, Luxshare,Pegatron.”
Mai HuuTin, president of U&I Investment Corporation and a member of the PrivateSector Development Committee, said the industrial real estate sector isconsidered a bright spot this year.
Thosein the industrial park business benefit from increased demand and rentals, hesaid.
However,with the country facing a number of environmental challenges, industrial estatedevelopers will have to focus on green growth, several experts said at theconference.
Theysaid Vietnam needed to conduct a comprehensive review of available resources,particularly land, as well as energy capacity, to make the most of foreigninvestments.
Italso needs to improve human resources, build supporting industries and givepreference to FDI projects that use modern technology.
In the first two months of this year, Vietnam received 2.1 billion USD worthof new foreign investment and disbursed 1.6 billion USD in public investmentfor respective increases of 6.8 percent and a 4.2 percent over the same periodlast year./.
VNA
