Vietnam is the second most sought-after emerging market, says survey

27 Feb 2024

Vietnam has been named the second most coveted emerging market in terms of value-added and opportunistic investments, according to the 2024 CBRE Asia Pacific Investor Intention Survey.

Vietnam is just trailing India in terms of attractiveness to investors, according to the November and December surveys.

As the country offers a distinctive setting where portfolios comprising assets that generate income are rare and generally unavailable for purchase, investors focus on industrial and office assets, as they would elsewhere in the Asia-Pacific.

Vietnam’s strong economy and export-driven strategy have boosted trade, highlighting the importance of effective logistics and supply chain management, The Star reports.

Demand for industrial assets is further propelled as investors recognise these requirements.

In addition, residential development sites in the country continue to spark great interest from overseas developers and buyers, with many actively looking into properties owned by landlords up against legal challenges or with limited funding access, or distressed assets.

“Investors with a long-term view on the potential of Vietnam’s economy and ready to deploy capital are most likely to reap the benefits of the repricing and decompression of asset yields,” said Duy Nguyen, investment properties director at Coldwell Banker Richard Ellis (CBRE) Vietnam.

“This is particularly true when sellers are seeking to exit after their investment window.”

Furthermore, on a regional basis, the top two investor concerns for 2024 are central bank policy rates and economic uncertainty, yet these concerns have eased considerably since last year.

However, the difference in pricing expectations of buyers and sellers is still a key concern for investors. This is despite the repricing within the majority of markets and sectors in Asia-Pacific last year.

The findings from the survey also revealed weak buying intentions across Asia-Pacific, whilst selling intentions reached a record high.

The poll asked more than 500 respondents a series of questions in relation to their buying intentions, the challenges they believe they may encounter, and their chosen strategies, sectors, and markets for 2024.