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%
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