Savills: "Vietnam holds positive outlook for 2024"

According to Savills Vietnam's "Asia Pacific Investment Quarterly Q1/2024" report, the development outlook for Vietnam's economy in 2024 is very positive, driven by strong foreign investment, especially in high-tech industries.

Especially, the report noted that the Asian Development Bank (ADB), the International Monetary Fund (IMF) and the World Bank (WB) have projected Vietnam’s GDP growth at 5.5-6.5 per cent this year. This growth will position Vietnam as one of the fastest-growing economies globally this year, alongside economies such as Macau (China), India, and the Philippines.

In the first quarter of 2024, Vietnam's GDP was estimated to have increased by 5.66% per cent year-on-year, higher than the growth rates of the first quarters from 2020 to 2023. Additionally, figures from the General Statistics Office (GSO) showed that total registered foreign direct investment (FDI) this year, as of May 20, reached over $11.07 billion, up 2 per cent year-on-year. Of this, 1,227 new projects were licensed with registered capital reaching $7.94 billion, a 27.5 per cent increase in the number of projects and a 50.8 per cent increase in registered capital,  compared to the same period last year.

Mr. Troy Griffiths, Deputy Managing Director at Savills Vietnam, stated that Vietnam's economic outlook for 2024 is positive, with forecast GDP growth of 5.5 per cent to 6.5 per cent, placing the country among the top 20 fastest-growing economies globally.

"FDI inflows reflect robust growth, with newly registered FDI increasing 58 per cent year-on-year, highlighting sound investor confidence and a vibrant industrial sector," he added.

Besides, semiconductor chips will likely draw in notable investment in 2024, and Vietnam will benefit from the US Science and CHIPS Act, which includes $500 million for improving semiconductor training, cybersecurity, and business climates globally, according to the US undersecretary of state for economic growth, energy, and the environment. Lam Research (US), a leading semiconductor manufacturer, plans to develop a factory in Vietnam, with an investment of $1 to $2 billion in the near future.

Real estate investment activities in Vietnam are also relatively vibrant in segments such as industrial parks, offices, and resorts.

For the resort real estate sector, Savills Vietnam forecasts that the number of tourists to the country from the Asia-Pacific region will return to 2019 levels by 2025. Notably, Vietnam is increasingly popular as an ideal destination for tourists from India.This reflects the tourism industry's strong recovery and opens up new development opportunities for the resort real estate market in Vietnam, as more investors recognize the potential and value of investing in these attractive and promising areas.

Furthermore, strong demand from foreign manufacturing and information technology (IT) enterprises will continue to support office performance in Hanoi and Ho Chi Minh City. Increased investment from international companies in these industries will contribute to higher office rental demand, facilitating the sustainable expansion and development of the office real estate market in Vietnam's two largest cities.