Chau Duc Industrial Park in Ba Ria-Vung Tau Province. Investors from Taiwan (China) are particularly keen on Viet Nam’s industrial, office and retail real estate. — VNA/VNS Photo Hoang Nhi

Investors from Taiwan (China) are particularly keen on Viet Nam’s industrial, office and retail real estate, motivated by the country’s progress in improving the legal framework and substantial investment in key infrastructure, property consultancy Savills Viet Nam said.

This year, Taiwan has been the second largest foreign investor in Viet Nam with US$407.1 million, according to the Foreign Investment Agency.

Cumulatively, the island was the fourth largest foreign investor in Viet Nam as of mid-2022.

Its investments are mostly in manufacturing, construction and real estate.

There is a long history of Taiwanese investment into Viet Nam dating back over 30 years and covering manufacturing as well as real estate, Neil MacGregor, Savills managing director, said.

In the early days, the key driver was low-cost labour and this saw many large manufacturers from the garment and footwear industries establish a strong presence, he said.

Today, while these investors continue to expand their presence in Viet Nam, there are also increasingly hi-tech investors from Taiwan moving production to Viet Nam, he said.

In real estate, some of the most successful projects in Viet Nam are by Taiwanese investors, including Phu My Hung, Royal Centre and Nikko Hotel in HCM City, he added.

Su Ngoc Khuong, senior director of investment at Savills, said the country’s real estate market offers tremendous opportunities for foreign investors.

“The strengths of Taiwanese investors are their strong financial resources, business and product development experience, customer base, and low financial costs.”

Savills data shows that manufacturing, industrial and family office investors are bullish on the Vietnamese market, a positive for the industrial and commercial real estate segments.

The country currently has 406 industrial parks. — VNS