The industrial real estate market of Vietnam has high growth potential and opportunities thanks to steady annual growth in FDI, according to Savills’ Asia Pacific Investment Quarterly report for the third quarter of this year.

Demands for most of real estate segments are forecast to continue increasing, according to the report.

The sector attracted $20.52 billion of FDI this year, as of the end of August, up 7% compared to the same period last year. Meanwhile, FDI disbursement was estimated at $14.15 billion, a year-on-year growth of 8%.

Mr. Troy Griffiths, deputy managing director of Savills Vietnam, said together with stable economic development, the steady annual growth in FDI is one of key drivers of industrial real estate in Vietnam.

Vietnam's total area of operational industrial parks currently reached 33,000 ha, with an occupancy rate of approximately 80%.

Despite a projected slowdown in domestic spending, the retail market remains strong due to limited retail space and a growing middle class.

The Savills report also showed that foreign visitors are returning to Vietnam, with over 11.4 million tourists visiting the country in the first eight months of 2024, up 45.8% year-on-year.

Some 191 hospitality projects are expected to complete by 2028, supplying around 49,800 rooms. About 75% of this new supply is in the mid-to-high-end segment, with 70% branded by international luxury hotel chains.