Vietnam a low-risk, attractive destination for investors: Savills

By Bao Long
Tue, August 16, 2022 | 3:53 pm GMT+7
The Cat Linh-Ha Dong train line in Hanoi. Photo by The Investor/Trong Hieu.

The Cat Linh-Ha Dong train line in Hanoi. Photo by The Investor/Trong Hieu.

Vietnam, on a competitive basis versus China, other parts of Southeast Asia or India, offers a relative low-risk environment to do business, according to top Savills executives.

“I think that has played out very well and we’re going to continue to see technology companies and other U.S. businesses putting down strong roots in Vietnam,” said Dominic Harding, senior vice president of Savills.

“They’ve come in, and they’ve tested the water hill. They’ve seen it as an attractive place to do business with a good talent base for staff and growing a strong business, and good on sales side and demand side. It’s obviously a great growing market for them to be operating in. Now we’re seeing their continued investment and continued growth in the long term,” he noted in an update on Vietnam Monday.

Dominic Harding, Savills senior vice president. Photo courtesy of the company.

Dominic Harding, Savills senior vice president. Photo courtesy of the company.

Harding said it is going to be a positive story for Vietnam’s real estate market, with continued demand for quality office space with good amenities and good environments for people to work in. “I think one of the great stories about Vietnam is its robustness on a global scale. Many years of good growth and we’re continuing to see that.”

Vietnam’s government has a good track record right now of keeping inflation at a reasonable rate, according to Harding.

The country's consumer price index in the first seven months of the year rose 2.54% on average against the same period last year. The World Bank on August 8 put Vietnam's inflation forecast at 3.8% in 2022 due to higher prices of energy, lower than the State Bank goal of 4%.

“I think the way that Vietnam, certainly from my outside perspective, reacted to Covid and has gone through the various pandemic stages has left a very positive impact on the international environment. When you compare it to other parts of the region that are stricter and coming out slower, that’s definitely giving people the confidence to invest in the long term in Vietnam.”

Christopher Marriott, Savills CEO, Southeast Asia, said the expansion of the supply chain and manufacturing is being driven by “China plus One” where Chinese companies have been asked to expand their manufacturing and supply chain to at least one country outside China and the demand from multinationals to expand or create a more robust supply chain in Southeast Asia.

Vietnam will potentially benefit from this, he said. “Vietnam has a very strong work ethic and a very highly educated labor force. We've already seen certainly up in places like Hanoi and Ho Chi Minh City high-end manufacturing in the technology, and electronics marketplace. With that growth of what I would call a base industry and a high-grade base industry in technology and electronics, it attracts investors.”

Christopher Marriott, Savills CEO, Southeast Asia. Photo courtesy of the company.

Christopher Marriott, Savills CEO, Southeast Asia. Photo courtesy of the company.

Marriott noted that one of the big advantages that Vietnam has at the moment is that it really has the top end of manufacturing.

“We’re seeing raw products in Indonesia. We’re seeing automobiles and agriculture in Thailand, but in Vietnam waltzing is the electronics industry. The technology industry is being driven by a highly educated labor force and the strength of that labor force.

“It is cost-effective now to manufacture in Vietnam and the logistics of both importing and exporting those goods. Importing rural products and exporting goods is starting to improve with the logistics networks. I think there’s a solid investment argument for institutional investors, developers, and international developers to invest in Vietnam.”

He added: “In places like Singapore, all the prices have risen like in China. The cost of executing business, and the ability to import and export have become more difficult. All that business needs is to go somewhere. And I think Vietnam is very well placed to capture some of that demand and obviously increase in demand, especially after a post-Covid period.”

Marriott said investments in Asia-Pacific have shifted toward manufacturing, logistics, and the data center marketplace. With the growth of e-commerce, the expansion of supply chains, and diversification of the supply chain, there have been developments in the manufacturing and business part in Southeast Asia.

“Institutional investors and developers really focus on markets where there's a growth of manufacturing and logistics. In addition, there’s been a growth in the technology side both with e-commerce and general technology, and that is driving demand for data centers to handle the technology traffic,” he added.

The World Bank on August 8 upped its Vietnam GDP growth estimate to 7.5% for the year, much higher than the 5.8% it forecast early June. Investment management firm VinaCapital expects the country’s GDP to grow at least 10% in the third quarter and 7.5% the whole year.

Comments (0)
  • Read More
Real estate developer Phat Dat’s “geographical edge” from HCMC expansion: From strategic core to new growth driver

Real estate developer Phat Dat’s “geographical edge” from HCMC expansion: From strategic core to new growth driver

The merger of Binh Duong and Ba Ria-Vung Tau into Ho Chi Minh City is ushering in a new chapter for the southern real estate market, and Phat Dat Real Estate Development Corporation is seen as one of the top beneficiaries poised to capitalize on this timely opportunity.

Real Estate - Sun, August 10, 2025 | 2:02 pm GMT+7

Vietnam’s garment, wooden furniture exports to US likely to slow: official

Vietnam’s garment, wooden furniture exports to US likely to slow: official

From now until late 2025, and possibly into the first half of 2026, some Vietnamese exports to the U.S may struggle to sustain the rapid growth seen in the first six months of this year, said Vu Ba Phu, director of the Trade Promotion Agency under the Ministry of Industry and Trade.

Economy - Sun, August 10, 2025 | 1:27 pm GMT+7

Vietnam port operators dock strong quarter

Vietnam port operators dock strong quarter

Many port operators in Vietnam logged strong Q2/2025 net profit, and analysts said that the sector has potential to sail further.

Companies - Sun, August 10, 2025 | 10:21 am GMT+7

Vietnam's Party chief To Lam leaves for state visit to South Korea

Vietnam's Party chief To Lam leaves for state visit to South Korea

Vietnam's Party General Secretary To Lam and his spouse Ngo Phuong Ly departed from Hanoi on Sunday morning for a four-day state visit to South Korea, at the invitation of President Lee Jae Myung.

Politics - Sun, August 10, 2025 | 9:15 am GMT+7

Japan’s Sumitomo eyes LNG power plant in central Vietnam

Japan’s Sumitomo eyes LNG power plant in central Vietnam

Sumitomo Corporation is exploring the development of an LNG-to-power plant in Vietnam’s central coastal province of Khanh Hoa, part of its push into the country’s new energy sector.

Energy - Sun, August 10, 2025 | 8:00 am GMT+7

Brazilian meatpacker JBS to build 2 plants in Vietnam

Brazilian meatpacker JBS to build 2 plants in Vietnam

Brazilian meat giant JBS S.A. will invest in two export-oriented food processing plants in Vietnam following a plan first announced in March.

Investing - Sun, August 10, 2025 | 12:28 am GMT+7

Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Despite potential short-term volatility from increased profit-taking pressure following a high-margin phase in late July, Vietnam’s benchmark VN-Index is expected to reach the 1,750-1,800 point range in 2026, according to leading broker Saigon Securities (SSI).

Finance - Sat, August 9, 2025 | 6:22 pm GMT+7

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World Investment Corporation (MWG), a leading retailer in Vietnam, plans to conduct an IPO of and list its core retail chains The Gioi Di Dong (mobile phones) and Dien May Xanh (electric and electronic home appliances) by 2030.

Companies - Sat, August 9, 2025 | 6:04 pm GMT+7

Vietnam officially grants visa-free entry to high-profile foreigners

Vietnam officially grants visa-free entry to high-profile foreigners

The Vietnamese Government has introduced a limited-term visa waiver scheme for foreign nationals who are "prioritized for the sake of the country’s socio-economic development".

Politics - Sat, August 9, 2025 | 11:32 am GMT+7

VinEnergo launches rooftop solar, battery storage projects in central Vietnam

VinEnergo launches rooftop solar, battery storage projects in central Vietnam

VinEnergo Energy Joint Stock Company has signed MoUs to install rooftop solar power systems integrated with battery energy storage systems (BESS) with the VinFast automobile plant and two battery factories in the central province of Ha Tinh.

Companies - Sat, August 9, 2025 | 10:21 am GMT+7

Indonesia doubles lithium imports to boost EV battery production

Indonesia doubles lithium imports to boost EV battery production

Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realize its ambition of becoming a global EV manufacturing hub.

Southeast Asia - Sat, August 9, 2025 | 10:18 am GMT+7

Optimism rises for Thailand’s economy after US tariff cut

Optimism rises for Thailand’s economy after US tariff cut

Thailand’s private sector has lifted its 2025 GDP growth forecast to 1.8-2.2%, up from the previous 1.5-2%, following the U.S. decision to reduce import tariffs on Thai goods from 36% to 19%.

Southeast Asia - Sat, August 9, 2025 | 10:16 am GMT+7

Foreign investors make up 4.27% of Vietnamese G-bonds trading value in July

Foreign investors make up 4.27% of Vietnamese G-bonds trading value in July

Foreign investors accounted for 4.27% of the total trading value of Vietnamese government bonds (G-bonds) in July, with net buying at VND298 billion (nearly 11.4 million).

Finance - Sat, August 9, 2025 | 10:08 am GMT+7

Vietnam developer Taseco Land plans private share placement following HCMC bourse debut

Vietnam developer Taseco Land plans private share placement following HCMC bourse debut

Shortly after its listing on the Ho Chi Minh Stock Exchange (HoSE) as TAL, Taseco Land, a subsidiary of Vietnam’s conglomerate Taseco Group, is seeking shareholder approval for a private share placement targeted at professional investors.

Companies - Sat, August 9, 2025 | 8:00 am GMT+7

Vietnam aims to finalize negotiations for Ninh Thuan 1 nuclear power plant by August

Vietnam aims to finalize negotiations for Ninh Thuan 1 nuclear power plant by August

The Vietnamese government targets completing negotiations for Ninh Thuan 1 nuclear power plant in former Ninh Thuan province (now Khanh Hoa) by August 2025, and for Ninh Thuan 2 by May 2026 at the latest.

Energy - Fri, August 8, 2025 | 4:18 pm GMT+7

Software giant SAP invests $175 ml in R&D center in Vietnam

Software giant SAP invests $175 ml in R&D center in Vietnam

German software heavyweight SAP has officially launched a research & development center in Vietnam, with plans to invest more than €150 million ($175 million) over the next five years.

Industries - Fri, August 8, 2025 | 3:43 pm GMT+7