Investors from Taiwan (China) are particularly keen on Vietnam’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 Vietnam said.

This year, Taiwan has been the second largest foreign investor in Vietnam with 407.1 million USD, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

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

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

There is a long history of Taiwanese investment into Vietnam dating back over 30 years and covering manufacturing as well as real estate, said Managing Director of Savills Neil MacGregor.

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 Vietnam, there are also increasingly hi-tech investors from Taiwan moving production to Vietnam, he said.

In real estate, some of the most successful projects in Vietnam are by Taiwanese investors, including Phu My Hung, Royal Centre and Nikko Hotel in Ho Chi Minh 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 showed 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.

VNA