VIPF 2024: Going green for new investment waves

At the opening of the forum, Le Trong Minh, VIR's editor-in-chief, said that investment has slowed significantly due to hesitation among foreign investors, especially since the beginning of 2024, when the global minimum tax (GMT) policy came into force in the country.

New standards and even interventions by governments to orient investments have also affected the trend. Foreign direct investment (FDI) flows are increasingly concentrated among countries with geopolitical links, especially in strategic areas. Opportunities for developing economies have narrowed, Minh said.

“However, Vietnam is still a bright spot for FDI because global investors are looking at Vietnam as the upcoming hub of the semiconductor industry supply chain,” he said.

Many foreign investors plan to set up production chains in Vietnam, including NVIDIA, while Samsung, LG, and others have committed to expanding their investments, possibly starting the country's fourth FDI wave.

In fact, FDI has recovered and increased sharply in the past year. “When FDI surges, it opens up opportunities and excitement for the Vietnamese industrial real estate market,” Minh emphasised, but concerns remain among investors regarding financial support, human resources, energy, and clean land.

“Vietnam's industrial real estate may benefit from the development of the semiconductor industry, but how many industrial parks (IPs) and economic zones can actually meet the needs of investors? Can we meet all their needs for electricity, water, and logistics services?” he asked.

“Eagles always need solid ‘nests’ and better services. Besides ‘eagles’, ‘sparrows’ also need ecological IPs for greener, cleaner, and more sustainable production to meet environmental, social and governance (ESG) standards,” Minh pointed out.

Since COP26, more and more standards and criteria on green growth and sustainable development are being implemented around the world. Eco-IPs are therefore becoming the selection criteria of foreign investors with the goal of sustainable development and economic benefits, along with a sense of responsibility to the community and society.

“In such a fast-moving world, investors' tastes change, so we must be ready to adapt and seize new opportunities,” Minh explained, highlighting the theme of the forum.

The forum included a session on the development prospects for Vietnam's industrial property market, and another on the green transformation of IPs.

At the VIPF, experts analysed the long-term prospects, growth potential, trends of specialised IPs, attractive sectors, and locations for industrial real estate, while looking at the demands of multinational corporations and domestic companies.

The VIPF also discusses the government's policy movements to promote industrial real estate, incentives, and policies to attract FDI, and unlock and anticipate shifting investment flows and opportunities for new IPs, green IPs, and eco-IPs.

The Vietnam Industrial Property Forum (VIPF) 2024, organised by Vietnam Investment Review and in coordination with the Vietnam Industrial Real Estate Association, will take place in Ho Chi Minh City on July 30.

Industrial real estate developers are waiting for a new law to open the path for developing greener models of industrial parks.

The competitiveness of industrial parks in Vietnam is currently weak, at the same time as most need to evolve into specialised or green-oriented facilities.

Industrial, service, and urban zones with smart technology application in operation and management of technical infrastructure will become hot development trends in the Vietnamese market, especially when it comes to some of the nation’s biggest foreign investors.