Vietnam’s economy is forecast to grow by 6.1% in 2024, with inflation expected to reach 4.5%, according to Troy Griffiths, deputy managing director of Savills Vietnam.
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A corner of Vietnam-Singapore Industrial Park II in Binh Duong province |
According to the report, foreign direct investment increased by 7% year-on-year, supporting industrial real estate, while international tourism and the retail sector show promising signs of recovery.
The country currently offers 33,000 hectares of industrial parks for lease, with an occupancy rate of approximately 80%, it said.
In September, T&T Group broke ground on a 41.7ha industrial cluster in Hanoi, and High-tech Infrastructure secured approval for a 105.5ha park in the northern province of Bac Giang.
Despite a projected slowdown in domestic spending, the retail market remains strong due to limited retail space and a growing middle class.
AEON Mall is expanding, having opened AEON Mall Hue (8.6ha) in Thua Thien Hue province in September, acquiring a 10.5ha site in Thanh Hoa province for its largest mall in the central region, and securing Master Plan 1/500 approval for the AEON Mall Bien Hoa project (12ha) in Dong Nai province. Becamex IDC also broke ground on a 7ha commercial complex in Binh Duong New City in Binh Duong province.
The Savills report showed that international visitors are returning to Vietnam, with over 11.4 million arrivals in the first eight months of 2024, up 45.8% year-on-year and 1% higher than in 2019.
By 2028, 191 hospitality projects are expected to add around 49,800 rooms; 75% of this new supply is in the mid-to-high-end segment, with 70% branded by international luxury hotel chains, positioning Vietnam as a key market in the region, it added.
Source: VNA