Profits shaky in industrial real estate

The latest outbreak of Covid-19 in Vietnam’s key industrial clusters has had an impact on FDI inflows. According to second-quarter business results posted by industrial real estate enterprises, which are an indication of movements in foreign investment, while many are still recording substantial profits there are others that are clearly struggling. Regarding the medium-term outlook, Vietnam’s industrial real estate segment may benefit from FTAs and companies moving away from China. Demand for land at industrial parks and for ready-built factories has increased. Localities are also actively promoting the expansion of industrial parks to catch the new investment wave. Promoting public investment would also help connect Vietnam with other regions, which in turn would help it attract FDI.