Châu Đức Industrial Park in Bà Rịa-Vũng Tàu Province. Investors from Taiwan (China) are particularly keen on Việt Nam’s industrial, office and retail real estate. — VNA/VNS Photo Hoàng Nhị

HCM CITY — Investors from Taiwan (China) are particularly keen on Việt 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 Việt Nam said.

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

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

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

There is a long history of Taiwanese investment into Việt 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 Việt Nam, there are also increasingly hi-tech investors from Taiwan moving production to Việt Nam, he said.

In real estate, some of the most successful projects in Việt Nam are by Taiwanese investors, including Phú Mỹ Hưng, Royal Centre and Nikko Hotel in HCM City, he added.

Sử Ngọc Khương, 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