US – CHINA TRADE WAR AND VIETNAM REAL ESTATE MARKET
With the situation of the US-China trade war becoming tense and complicated, many people worry that the real estate market and Vietnam’s economy generally will suffer badly. However, many specialists have analyzed and identified many great opportunities besides the challenges.
In the first 11 months of 2018, the total FDI in Vietnam reached $ 30.8 billion, equaling 93.2% of the same period of 2017. In which, the manufacturing sector attracted the most with FDI accounted for $ 14.2 billion. Second place is the real estate, accounting for $ 6.5 billion. In addition, the retail market has become attractive with $ 3.1 billion.
The figures show that Vietnam is a promised land for foreign investors, especially investors in Japan, Korea, Singapore … The obvious reason is Vietnam has a stable politics and sustaining the speed of development. In addition, China is a major market, accounting for one-sixth of the global market, attracting large numbers of foreign investors. But as the largest global trade war between the United States and China occurs, the huge foreign investment flow has shifted to other neighboring countries. In particular, Vietnam is the most potential market in the region.
From these it can offer many great opportunities for the Vietnam real estate market:
- Industrial Real Estate:
Attracting foreign economy raises the demand for industrial real estate. The characteristic of real estate is the need for infrastructure connection. As a result, the edge of big cities are strongly attracted by the large tracts of land and the convenience for transportation. The coastal provinces of Ho Chi Minh City is a clearly demonstration. Recently, Dong Nai, Binh Duong, Ba Ria Vung Tau, Long An have become the destination of lots of foreign investors, especially China. In the near future, infrastructure development projects deployed and finalized by HCMC People’s Committee which will bring more positive impacts to the real estate market.
2. Real estate office segment:
With the same scenario as the industrial real estate, the office sector will achieve high growth due to the large demand from businesses. Leading the trend are the Grade A and Grade B office centers. Compared with the common ground, the cost of renting office in Vietnam is relatively modest, while many neighboring countries have expensive prices. Thanks to the great potential as mentioned, many investors have turned to “delicious piece of cake” called office real estate.
- Resort real estate:
Resort real estate also grasp the great opportunity. According to the statistics of the Vietnam National Administration of Tourism, in the first 10 months of 2018, the number of international visitors to Vietnam reached nearly 13 million, up 22.4% over the same period in 2017. Vietnam also ranked in the Top 10 countries The fastest tourism growth in the world, according to the World Tourism Organization.
With this rapid growth, the type of resort real estate business has exploded. This is also considered as the investment channel is profitable and fast that attracts both domestic and foreign investors.