In its report “Opportunities and challenges of Vietnam’s industrial properties in 2020”, Savills said that 2019 was a special year for Vietnam’s economic growth in the context of global economic downturn.
In 2019, Vietnam’s impressive indexes of macroeconomic growth has supported realty market performance especially industrial properties with investment capital of US$24.56 billion accounting for 64.6 percent of total foreign direct investment.
In 2020 Vietnam has seen positive signs. In January alone, $5.3 billion FDI was poured into the country, a year-on-year increase of 179.5 percent. Of $5.3 billion, $4.5 billion was poured directly into fresh FDI projects – mostly in electricity, water and gas. Production and processing sector also attracted $85.33 million.
John Campbell, who heads the Department of Industrial Services of Savills Vietnam, said when EU-Vietnam Free Trade Agreement (EVFTA) officially takes effect, it will create good condition for Vietnam to shift away from exporting low value-added products to higher ones such as high-tech equipment, electronic goods, vehicles and medical commodities.
Moreover, global commercial networks will help Vietnam access to different partners as well as import cheaper commodities; hence, it will boost the country's export competitiveness.
In addition to increase in relationships with foreign partners, Vietnam will reap benefits of knowledge and technology transfer along with investment capitals.
When Vietnam welcomes businesses in the fields of food and beverage, fertilizers, porcelain, construction materials from European countries, the European Union (EU) will remove tariff lines for Vietnam’s goods exports including smartphones, textiles and farm products.