This buoyancy is most clearly evidenced by the announcement of RoK electronics giant Samsung to construct another factory in Vietnam with a total investment of over US$1 billion.
Following, social disturbances at industrial zones in Binh Duong, Dong Nai and HCM City related to China’s illegal placement of Haiyang Shiyou-981 rig in the East Sea, many leading economists and market analysts were wary that it may spillover and have negative ramifications of the nation’s investment attractiveness.
However, according to a recent survey conducted by experts at CBRE, the world’s leading commercial property and real estate services adviser, the effects have been inconsequential and those concerns have been laid to rest.
In the first half of the year, CBRE reports foreign investment inflows into Vietnam’s real estate market surged 65% over the same period last year to an all time record high of US$629 million in 16 projects.
The increase in mobile phone handsets and component exports is directly translating into an expansion of real estate investment as well as the industry, which is gradually replacing garments and textiles as the leading export product.
In the first six months of the year, mobile phone handset and component export earnings tripled last year’s same period totals, peaking at US$11.7 billion.
With the Trans-Pacific Partnership (TPP) Agreement poised to be signed early next year and the possibility of the Vietnam-EU Free Trade Agreement (VEFTA) being signed later this year, foreign investors are bullish on Vietnam, CBRE reports.
The aforementioned trade pacts will have tremendous economic impact on Vietnam’s production and exports, especially for advantaged products, such as garments and textiles, seafood, and footwear.
Currently, only 42% of Vietnamese products enjoy the EU's Generalised System of Preferences (GSP), but upon VEFTA coming into effect the number will burgeon, and manufactures are actively seeking opportunities to cash in by investing in Vietnam.
Upon the signing of VEFTA, at least 90% of Vietnamese products will get zero tariffs.
