Vietnam holds positive outlook for 2024: Savills exec

By Quang Minh
Fri, May 31, 2024 | 8:24 am GMT+7

Vietnam’s economy is looking bright this year, driven by robust foreign investment, particularly in high-tech industries, an executive from property service firm Savills Vietnam has said.

“Vietnam's economic outlook for 2024 is positive, with forecast GDP growth of 5.5% to 6.5%, placing the country among the top 20 fastest-growing economies globally,” Troy Griffiths, deputy managing director of Savills Vietnam, said in a note released Thursday.

  Troy Griffiths, deputy managing director of Savills Vietnam. Photo courtesy of the company.

Troy Griffiths, deputy managing director of Savills Vietnam. Photo courtesy of the company.

The Asian Development Bank, International Monetary Fund and World Bank, have projected Vietnam’s GDP growth at 5.5%-6.5% this year. According to the IMF, Vietnam is forecast to become one of the fastest-growing economies in the world in 2024, joining peers such as Macao, India, and the Philippines.

The country’s Q1 GDP expanded 5.66% year-on-year, higher than the growth rate posted in the first quarters of the 2020-2023 period. Registered foreign direct investment (FDI) in Q1 was $6.17 billion, up 13.4% year-on-year. Of the figure, newly registered FDI climbed 57.9% to $4.77 billion.

FDI inflow has continued to improve since then. FDI commitments in January-May went up 2% year-on-year to $11.07 billion, government data showed. Of the total, $7.94 billion was pledged for 1,227 newly-registered projects, up 50.8% and 27.5% year-on-year, respectively.

FDI inflows reflect robust growth, with newly registered FDI increasing strongly, “highlighting sound investor confidence and a vibrant industrial sector”, Griffiths emphasized.

He noted that semiconductor chips will likely draw in notable investment in 2024, and Vietnam will benefit from the U.S. Science and CHIPS Act, which includes $500 million for improving semiconductor training, cybersecurity, and business climates globally.

Lam Research, a leading U.S. semiconductor manufacturer, plans to develop a factory with an investment of $1-$2 billion in the Southeast Asian country.

In the industrial sector, Gelex Group and Frasers Property are collaborating to create industrial parks which adhere to LEED standards. They recently started the Industrial Center Yen My Project in the northern province of Hung Yen, which will offer 159,000 square meters of versatile industrial facilities. Additionally, their Industrial Center Dong Mai in Quang Ninh province involves a 71,000 sq m ready-built factory, set to be completed by Q4/2024.

Becamex IDC Corp recently signed an investment agreement with and Sembcorp Development Vietnam Co., Ltd. to develop an industrial park in Binh Thuan province which covers 5,000 ha and has a total investment of $817.4 million.

Vietnam’s tourism industry is recovering, with Asia-Pacific tourist numbers expected to return to 2019 levels by 2025. Vietnam is seeing a rise in its popularity as a wedding destination venue, particularly from India.

Several hospitality real estate projects resumed construction in Q1, including the Flex Home Apartment development (within the Libera Nha Trang project) by Masterise Homes and KDI Holdings with 300 condotels. Q1/2024 saw the launch of new residential developments, including the 877-ha mega project Vinhomes Royal Island in Hai Phong and Gamuda Land’s 3.7-ha Eaton Park Ho Chi Minh City.

Social housing has been prioritized and the government is supporting development with an updated legal framework and favorable interest rates.

Currently, 129 projects with a combined 114,934 social housing units are under construction. Many investors plan to deploy social housing projects, which can be lucrative if the right economies of scale are achieved.

Strong demand from foreign manufacturing and IT enterprises will continue to support office performance in Hanoi and Ho Chi Minh City. By the end of 2026, Grade A and B office supply in Ho Chi Minh City is forecast to rise by 200,000 sq m, an increase of 20% compared to current stock. Hanoi is expected to welcome an additional 220,000 sq m, an increase of 13%.

Comments (0)
  • Read More
Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

May saw a more stable picture in terms of U.S. tariff policies than April, helping lead to a renewed expansion in output and improved business confidence, says Andrew Harker, economics director at S&P Global Market Intelligence.

Economy - Mon, June 2, 2025 | 9:18 am GMT+7

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

The Ministry of Industry and Trade (MoIT) has proposed building two inter-regional renewable energy service and industry hubs in the country.

Economy - Mon, June 2, 2025 | 8:00 am GMT+7

Investors advised to take profits from stocks having risen sharply

Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

Finance - Sun, June 1, 2025 | 8:10 pm GMT+7

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

Companies - Sun, June 1, 2025 | 1:14 pm GMT+7

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.

Companies - Sun, June 1, 2025 | 10:29 am GMT+7

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.

Industries - Sun, June 1, 2025 | 8:00 am GMT+7

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.

Companies - Sat, May 31, 2025 | 11:09 pm GMT+7

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Billionaire Pham Nhat Vuong has registered to transfer more than 48 million Vingroup (VIC) shares to the newly-established VinSpeed that registered to build the North-South high-speed railway project.

Companies - Sat, May 31, 2025 | 7:14 pm GMT+7

Two investors propose $65 mln wind power project in central Vietnam

Two investors propose $65 mln wind power project in central Vietnam

A consortium of Quang Tri Renewable Energy Investment JSC and Win Power Holding Pte Ltd, and Nam Binh Wind Power JSC have submitted an application to implement a 48-megawatt wind power plant in the central province of Quang Tri.

Energy - Sat, May 31, 2025 | 3:10 pm GMT+7

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

The central city of Danang is calling for investment in an LNG and LPG terminal project worth over VND5.43 trillion ($208.7 million).

Infrastructure - Sat, May 31, 2025 | 10:52 am GMT+7

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), has dismissed social media allegations of selling diseased pork, calling them fabricated and false.

Companies - Sat, May 31, 2025 | 8:54 am GMT+7

Oman Investment Authority to expand investment fund in Vietnam

Oman Investment Authority to expand investment fund in Vietnam

Prime Minister Pham Minh Chinh has proposed Oman to enlarge the Vietnam-Oman Investment Fund (VOI) to $1 billion to better cater for the Southeast Asian country's investment needs.

Economy - Fri, May 30, 2025 | 11:26 pm GMT+7

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Retail giant Aeon will develop a 2-hectare mall in the Mekong Delta province of Tien Giang, with an estimated investment of VND1.16 trillion ($44.6 million).

Industries - Fri, May 30, 2025 | 4:44 pm GMT+7

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

Vietnamese businesses have experienced exponentially higher cost increases than the global average and are expecting additional short-term costs due to trade uncertainty. But many survey respondents (76%) think trade uncertainty has encouraged their business to evolve and explore new opportunities, write HSBC analysts.

Consulting - Fri, May 30, 2025 | 2:41 pm GMT+7

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

After five months of operating a virtual storefront on Alibaba’s B2B e-commerce platform, Sukavina Co., Ltd., a Binh Duong province-based manufacturer of metal tables, chairs, and beds, secured its first international order, marking a significant milestone in the company’s eight-year journey to global markets.

Companies - Fri, May 30, 2025 | 2:37 pm GMT+7

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

TTC AgriS (Thanh Thanh Cong-Bien Hoa JSC or AgriS) and International Finance Corporation (IFC) - a member of the World Bank Group - has signed an MoU to strengthen sustainable development governance in alignment with global standards.

Companies - Fri, May 30, 2025 | 2:30 pm GMT+7