- Foreign direct investment rose in Vietnam for seventh straight year (US$15.5 billion in 2018, cf. World Bank) as suppliers to Apple, Nintendo, Samsung build new bases
- Vietnam remains a priority for private equity fund EXS Capital (investor of SonKim Land), which has invested in an upmarket residential developer
- Analysts say industrial and residential property in the capital Hanoi and Ho Chi Minh City (HCMC) are likely to get another tailwind after the pandemic lockdown disrupted supply chains and escalated trade and political tension between China and other economic powerhouses.
“This Covid-19 outbreak is forcing many companies to re-evaluate their supply chain strategy. Vietnam is primed to benefit.”Sunny Hoang Ha, sales director at SPG Land Viet Nam, part of a group that controls Greenland Hong Kong Holdings.
“With the influx of foreign industrialists, they will need accommodation for both the foreign staff as well as local staff who might have come from other provinces. The residential segment will see an increase in demand, hence providing an uplift to prices. The thinking about ring-fencing supply chain to reduce over-reliance on one single production base will only expedite the move. Vietnam benefits from its proximity to China as well as its skilled and disciplined labour, which costs only a fraction of China’s.”Jeremy Williams, chief business officer at PropertyGuru, which operates the Batdongsan.com.vn portal.
“Many residential projects that are near Metro line stations have been selling good, but when the lines do come into operation, prices are expected to increase further”Andy Han Suk Jung, chief executive officer at SonKim Land.
“Any investment in the central business district would be a stable and good choice for the coming period”Kenny Law, an associate director for international residential business at Savills in Hong Kong.
Credit photo: Workers in the adaptor production line in a plant inside Vietnam-China Economic and Trade Cooperation Park. Photo: Cissy Zhou