According to the Foreign Investment Agency, Ministry of Planning and Investment, as of November 2024, the total registered FDI capital in Vietnam reached nearly 31.4 billion USD. Of which, many large projects producing value-added products such as semiconductors, energy, component manufacturing, and electronic products have received new investment and capital expansion.
Mr. Thomas Rooney - Deputy Director of Industrial Real Estate Services, Savills Hanoi - commented: "Vietnam is becoming a strategic destination for large technology corporations thanks to its favorable geographical location in the global supply chain. The wave of investment in high-tech projects and research and development centers is driving demand for infrastructure and factories, creating momentum for growth in the industrial real estate market."
According to Savills Industrial Real Estate report, the total national industrial land area reached more than 38,200 hectares from 203 operating industrial parks, up 5% over the previous year.
Vietnam has a favorable location, close to China's Silicon Valley (Guangzhou - Shenzhen - Dongguan). Thanks to that, Vietnam is suitable for the strategy of diversifying supply chains and reducing dependence on China (China +1 Strategy) of large companies in reducing geopolitical risks.
Strong infrastructure and transport policies continue to enhance Vietnam’s appeal to foreign investors. With 7% of GDP allocated to key projects such as the North-South Expressway, Long Thanh International Airport and deep-water ports such as Cai Mep in Ba Ria-Vung Tau, Vietnam is directly connected to Europe, the Americas and Southeast Asia.
In addition, abundant human resources, support policies for high-tech projects and increasingly improved infrastructure also contribute to attracting international investors, promoting Vietnam to become a high-tech manufacturing center.
Not to mention, recently, the cooperation agreement between the Vietnamese Government and NVIDIA, the world's leading corporation in AI and semiconductors, marked an important turning point, creating an opportunity for Vietnam to become the leading AI R&D center in Asia.
The construction of NVIDIA's R&D center in Vietnam, along with the government's human resource development strategy and support policies, promises to bring higher added value, attract investment and promote cutting-edge technology industries.
Mr. Thomas assessed: “NVIDIA’s construction of an R&D center in Vietnam will promote the demand for high-tech park development, increase the value of industrial real estate and attract more capital from large technology investors. This will not only elevate industrial parks but also expand opportunities for developing modern infrastructure and supporting service industries.”
