A corner of Ho Chi Minh City (Photo: VNA)

Savills 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 106 million USD.

Troy Griffiths, Deputy Managing Director of Savills Vietnam, said that despite short-term pressures on inflation as well as a decline in production and export, Vietnam's medium-term outlook remains positive. FDI inflows into Vietnam are showing many promising opportunities.

Although the total FDI decreased, newly registered projects and capital increased sharply, especially in the manufacturing sector. Improvements in infrastructure development, administrative reform and investment in innovation hubs in Vietnam are also contributing to making the market more attractive to international investors, said Griffiths.

Thomas Rooney, Senior Manager of Industrial Services at Savills Hanoi, said that the Purchasing Managers' Index (PMI) and the Index of Industrial Production in Vietnam both had positive increases in the first months of 2023.

As for the supply of ready-built factories, the attraction of localities such as Hai Phong will increase in the eyes of investors as well as tenants. In addition, Bac Ninh is also an ideal choice for domestic and foreign tenants as well as investors in developing ready-built warehouses, as the province has risen to the third place in terms FDI attraction, he noted.

In general, 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, so that it can make the best use of it and create a breakthrough, according to Savills.