Global Reputation and Good Execution slide image

Global Reputation and Good Execution

3 Industrial Real Estate as a New Growth Driver FDI in Vietnam Has Seen Accelerating Growth Registered FDI (US$ bn) (1) ~60% of FDI is in Manufacturing and Processing Registered FDI (US$ bn), 2019(2) 22.8 24.4 2015-2019 CAGR: 14% 35.9 35.5 38.2 2015 2016 2017 2018 2019 US$38.2bn Total Registered FDI Others 25% Real estate 10% Manufacturin g 65% Structural Drivers for Increasing Manufacturing in Vietnam (3) ✓ Government to invest additional VND21tn (US$924mn) in the development of infrastructure for economic zones and industrial parks (4) ✓ Shifting of manufacturing supply chains to Vietnam due to US-China trade war, low labour costs and government incentives to drive FDI (e.g. LG, Samsung, Kyocera, Nintendo etc.) ✓ Room for growth in manufacturing contribution to Vietnam GDP (current contribution: 20%) ✓ Abundant land supply to facilitate incoming manufacturing projects ✓ Diversification due to COVID-19 disruption IPs in Northern Vietnam remained a promising market despite COVID-19 Source: Company information Robust Industrial Parks Growth Throughout Vietnam Top Provinces by FDI, 1H2020 Province Occupancy YoY Lease price YoY growth 1 Bac Ninh 11.8% 9.2% 2 Vinh Phuc 3.8% 4.8% 3 Ha Noi 1.1% 13.2% 4 Hai Duong 7.9% 15.2% 5 Hai Phong 1.1% 3.2% 6 Hung Yen 3.5% 6.4% 7 Dong Nai 1.1% 6.5% 8 Binh Duong 2.1% 4.9% 9 Ba Ria Vung Tau 12.9% 18.2% 10 Long An 1.2% 7.9% 23
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