Experts from Savills Vietnam highlighted some large-scale merger and acquisition (M&A) deals in Vietnam in the second quarter of 2023, including Everland Opportunity IX’s purchasing of three hotels in Vietnam and Indonesia from Strategy Hospitality Holdings Ltd. with US$ 106 million. These deals are examples of promising opportunities for Vietnam's real estate companies in attracting foreign investors.

Vietnam remains attractive for investors

Vietnam is drawing great interest from investors thanks to the positive recovery capacity and the flexibility of the country’s economy, according to a recent report from Savills Vietnam (Photo: Vietnamnet).

Other examples included Keppel and Keppel Vietnam Fund acquired a 49% stake in two residential projects in Thu Duc city in Ho Chi Minh City with an area of 11.8 hectares from Khang Dien Group for US $136 million. THT Development Co. Ltd. also transferred 1.13 hectares of land in Starlake City in Hanoi to CMC Technology Group to build an innovation center with an investment of US $76 million.

Vietnam's medium-term outlook remains positive, said Deputy Managing Director of Savills Vietnam Troy Griffiths. The reduction in interest rates made by the State Bank of Vietnam (SBV) has stimulated economic growth by reducing the cost of capital for borrowers and credit institutions, amid the short-term pressures on inflation as well as a decline in production and export that occurred in the first half of 2023.

Griffiths said that although the total FDI decreased, FDI inflows into Vietnam are showing many promising opportunities. Savills Vietnam report showed that newly registered projects and capital increased sharply, especially in the manufacturing sector. The FDI market in Vietnam is currently considered attractive thanks to the improvements in infrastructure development, administrative reform, and investment in innovation hubs.

In the near future, the current interest rates will continue to support growth and FDI inflows. According to VNA, new regulations supporting debt restructuring will be positive for real estate and will boost transparency, which is positive for sustainable growth in the long term, Griffiths added.

First half of 2023 witnessed increasingly large investment deals

According to Savills, the shift to the global supply chain has created many new opportunities and also brought certain challenges. Therefore, the Vietnamese market needs to grasp trends and access opportunities fully and quickly (Photo: aseanvietnam.vn).

Vietnam's Purchasing Managers' Index (PMI) and the Index of Industrial Production both had positive increases in the first months of 2023, said Thomas Rooney, Senior Manager of Industrial Services at Savills Hanoi. He also added that the market continues to record large investment deals, which signals good business opportunities for local firms amid the decline in aggregate demand on a global scale. The State needs to solve the problem in a timely manner and in combination with preventive measures to promote economic development, Rooney claimed.

Until the end of 2023, the attraction of local suppliers of ready-built factories, such as Hai Phong will increase in the eyes of investors as well as tenants. Bac Ninh is also an ideal choice for domestic and foreign tenants as well as investors in developing ready-built warehouses, he noted.

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