Việt Nam-Singapore Industrial Park in the southern province of Bình Dương. — VNA/VNS Photo

Investors have sound confidence and a positive outlook for Việt Nam’s economy in 2024, according to Savills Việt Nam’s report “Asia Pacific Investment Quarterly Q1/2024” (APIQ).

The company’s Deputy Managing Director, Troy Griffiths, said that Việt Nam's economic outlook for 2024 is positive, with forecasted GDP growth of 5.5 to 6.5 per cent, placing the country among the top 20 fastest-growing economies globally.

Foreign direct investment (FDI) inflows reflect robust growth, with newly registered FDI increasing 58 per cent year-over-year, highlighting sound investor confidence and a vibrant industrial sector, he said.

The Asian Development Bank, the International Monetary Fund (IMF), and the World Bank forecast that Việt Nam's GDP growth in 2024 will reach 5.5 to 6.5 per cent.

According to the IMF, Việt Nam will be one of the fastest-growing economies in the world by 2024, on par with countries like India and the Philippines.

By the end of March 2024, Việt Nam's GDP is estimated to increase by 5.66 per cent over the same period in 2023, higher than the growth rate of the first quarters in the 2020-23 period.

The Savills APIQ report forecasts that Việt Nam's semiconductor chip industry is expected to attract significant investment in 2024.

According to economic experts, Việt Nam will benefit from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of the US, including a US$500 million grant to improve training in semiconductor, cybersecurity, and business environments globally.

Lam Research, a leading semiconductor manufacturer in the US, plans to build a factory with a total investment of $1 to $2 billion in Việt Nam.

In the industrial sector, Gelex Group and Frasers Property are cooperating to build industrial parks that meet the Leadership in Energy and Environmental Design (LEED) – a green building certification programme. Specifically, they started the Yên Mỹ Industrial Centre project in the northern province of Hưng Yên, providing 159,000sq.m of flexible workshop space.

In addition, the Đông Mai Industrial Park in the northeastern province of Quảng Ninh, with a 71,000sq.m ready-built factory, is expected to be completed in the fourth quarter of 2024. Becamex IDC Corp has just signed an investment agreement with related units to implement a 5,000ha industrial park project in the south-central province of Bình Thuận with a total investment capital of over $800 million.

Regarding the tourism sector, it is expected that Asia-Pacific tourist arrivals will return to 2019 levels by 2025. Việt Nam is becoming increasingly popular as a wedding destination, especially for Indian tourists. In that context, a number of resort real estate projects have restarted construction in the first quarter, including the Flex Home Apartment project – part of the Libera Nha Trang project jointly developed by Masterise Homes and KDI Holdings – with 300 condotels.

New housing projects were launched in the first quarter, including the 877ha Vinhomes Royal Island mega project in Hải Phòng and Gamuda Land's 3.7ha Eaton Park HCM City project.

The Government and localities have been prioritising social housing development with updated legal frameworks and preferential interest rates. Currently, 129 projects with a total of 114,934 social housing units are under construction, and many investors are willing to engage in this segment.

Strong demand from foreign manufacturing and IT businesses will continue to support the office market in Hà Nội and HCM City. It is expected that by the end of 2026, Grade A and B office supply in HCM City will increase by 200,000sq.m, equivalent to an increase of 20 per cent compared to the present. In Hà Nội, an additional 220,000sq.m is expected, 13 per cent higher than the current area. — VNS