VIETNAM, September 23 –
HÀ NỘI — Việt Nam’s property market is seeing more investment from the UK thanks to the UK-Việt Nam Free Trade Agreement (UKVFTA).
The UK is particularly known for consulting services in the real estate sector. According to Savills Việt Nam, a British real estate advisory provider in Việt Nam, real estate is not only the choice of many investors, but also a safe and highly effective investment channel.
“This deal will likely spur the expansion of UK businesses in Việt Nam and we expect interest from data centers, hi-tech manufacturing, financial services, hi-tech services and possibly pharmaceutical companies as well,” said Matthew Powell, Savills director. Hanoi, told Vietnam News.
“These businesses will demand real estate across the country, which can range from manufacturing plants to office space. There is a growing interest and demand from UK companies. Việt Nam is very hot and the two countries continue to invest in conferences.”
“We may see institutional investors in the commercial market with interesting Class A office features such as Techcombank Tower 6 Quang Trung.”
With a dynamic industrial scene, Việt Nam can also see players in industrial data centers or logistics. However, we expect the focus to be largely on services and financial services, he said.
Additionally, “We expect investment from the UK to be related to services, pharmaceuticals, engineering specialists, hi-tech manufacturing, aerospace, financial services and other export industries from the UK.”
Although Asian countries such as Singapore and South Korea are leading the way in investment, there are several active multinationals from the UK in Việt Nam, particularly in the financial services sector. For example, Standard Chartered opened its new head office in Hà Nội at Capital Place in June.
“At the moment, the interest is largely Asian-centered, but we may see an increase in UK curiosity,” said Powell.
On 29 December 2020, the UK and Việt Nam signed the free trade agreement (UKVFTA) to pave the way for continued and increased trade between the two countries. The agreement entered into force on May 1, 2021.
According to Cushman & Wakefield Vietnam, participation in trade agreements can bring huge benefits to the investment market in Việt Nam, as evidenced by previous agreements. A good example is the capital inflow of US$1 billion from Denmark for the Lego factory project in Việt Nam after the entry into force of the EU-Việt Nam Free Trade Agreement (EVFTA).
“So we have high confidence that the UKVFTA will help attract more UK investors to Việt Nam,” said Trang Bùi, Country President of Cushman & Wakefield Vietnam. Vietnam News.
“The UK’s property market is mature and established, so investors are more willing to allocate capital to assets that are already in operation and deliver profits with high stability and low risk,” Trang said.
“This strategy may look different from investors in other parts of the world. Overall, cross-border investors always need some time to adjust their capital flows and look for the right opportunities in developing countries like Việt Nam.”
“To maximize the potential benefits of UKVFTA, Việt Nam needs to constantly change and improve its policies and business environment according to the stringent requirements imposed by foreign investors. Through this process of continuous improvement and adaptation, the country’s competitiveness will rise to new heights in Europe. investment map,” he said.
As of May 2022, the United Kingdom has a total of 462 investment projects in Việt Nam with a total registered investment capital of $4.15 billion.
UK investors have invested the most in Việt Nam’s manufacturing and processing industry, with about $1.6 billion in 120 projects of registered investment capital accounting for around 40 percent of the total investment capital.
The second was the real estate sector, with 23 projects with an investment capital of $1.04 billion, accounting for 26 percent of the total investment capital. – virtual network