More than 80% of foreign investors require ESG standards in the industrial real estate sector

DNVN - Industrial real estate is facing the opportunity to welcome the fourth wave of foreign direct investment. However, according to Savills Vietnam, about 80% - 85% of foreign investors have requirements for ESG sustainable development standards (including 3 factors: environment, society and corporate governance).

According to data from the Foreign Investment Agency (Ministry of Planning and Investment), in the first 7 months of 2024, the total registered foreign investment capital in Vietnam reached more than 18 billion USD, an increase of 10.9% over the same period in 2023. Of which, the disbursed capital reached more than 12.55 billion USD, an increase of 8.4% over the same period last year.

Thus, in the first 7 months of this year, both registered and implemented investment capital continued to increase compared to the same period, with increases of 10.9% and 8.4% respectively. Notably, July alone recorded a total registered capital of more than 2.8 billion USD - accounting for 15.6% of total investment capital in 7 months.

Foreign investors invested in 18 out of 21 sectors of the national economy. The processing and manufacturing industry took the lead with a total investment capital of more than 12.65 billion USD, accounting for 70.3% of the total registered investment capital, up 15.7% over the same period last year.

Notably, the real estate business ranked second with a total investment capital of more than 2.87 billion USD, accounting for nearly 16% of the total registered investment capital, up 78% over the same period. Foreign investment in the real estate sector has grown quite strongly.

Vietnam's industrial park market is changing in quality to attract investment capital.

Ms. Van Nguyen - Senior Director of Northern Trading Markets, JLL Vietnam, commented that Vietnam's industrial park market is changing in terms of investment attraction quality. Vietnam is in a new wave of investment attraction and the future trend is to develop in depth, positioning Vietnam as a progressive market, attracting high-level investors.

Sharing the same view, Mr. Truong An Duong - Managing Director of the Northern Region and Residential Real Estate Division of Frasers Property Vietnam said that the Vietnamese industrial park market has developed quite strongly in recent times. In which, there is a driving factor from the development of seaport and airport infrastructure serving import and export activities.

Mr. Tom Over - Director of Transportation & Industrial, JLL Vietnam & Asia - Pacific also believes that the industrial real estate market in Vietnam still has a lot of potential for development. At present, Vietnam's GDP has grown again, with exports increasing by 15% in the first 6 months of 2024. In terms of foreign investment, Vietnam is still one of the outstanding countries in the region.

“JLL’s research data shows that the Vietnamese market is developing a lot, especially with a lot of money flowing in. Our general message is that the journey is still very long and we are just at the beginning of the journey,” said Mr. Tom Over.

Emphasizing the view that Vietnam is facing the opportunity to welcome the fourth wave of foreign direct investment, leading to the development of industrial real estate, Savills Vietnam especially noted that industrial parks need to pay attention to green trends to increase their attractiveness to investors.

Based on primary data from working with clients, Savills experts estimate that about 80% – 85% of foreign investors have ESG standards requirements. Vietnam must adapt to this trend.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/hon-80-nha-dau-tu-nuoc-ngoai-yeu-cau-tieu-chuan-esg-linh-vuc-bat-dong-san-cong-nghiep/20240805085222855