Industrial real estate is one of Southeast Asia’s hottest segments as firms seek new hubs outside of China. Perhaps no country in the region has benefitted from this as much as Vietnam.
Companies from a multitude of industries have chosen Vietnam because of its convenient location, strong growth, export-oriented economy and skilled workforce. This has seen the country’s industrial real estate sector take off with further expansion predicted.
“With favorable incentives, competitive labor costs, a stable political environment, a positive economic outlook and free trade agreements, Vietnam has also become favored by foreign investors moving out of China,” Kenny Gaw, President and Co-founder of Gaw Capital Partners, told Vietnam News Agency during a recent conference. “Furthermore, Vietnam is experiencing a golden population structure, with 60 percent of its population very young, productive and hardworking.”
He added that Vietnam’s upcoming industrial real estate evolution will be the foundation for attracting additional foreign direct investment.
Investors drawn to Southeast Asia
Most investors take a favorable review towards Asia Pacific real estate, although there could be a shift of interests in sectors and asset classes this year. A survey from CBRE found that 59 percent of those surveyed intended to buy more properties in 2022.
Logistics is the preferred sector for property investment this year. However, CBRE adds that demand here could weaken due to investors exploring whether or not growth recorded during the COVID-19 pandemic can be sustained.
“Despite the spread of new variants of COVID-19 leading to a resurgence of infections in many markets over the course of 2021, investment sentiment towards Asia Pacific real estate remains positive, with respondents from Singapore, Korea, Japan and Australia the most optimistic,” the CBRE 2022 Asia Pacific Investor Intentions Survey explained.
Keep Reading: Investment sentiment towards Asia Pacific real estate remains positive