IP investors utilising sustainable practices

Amid rising geopolitical tensions that are forcing manufacturers and exporters to strengthen supply chain security, Vietnam's industrial areas are finding new opportunities to upgrade their operational standards in line with green practices.

- Bich Ngoc reports.

Phu My 3 in Ho Chi Minh City was selected for a pilot programme to build an eco-IP model

Speaking with VIR last week in Ho Chi Minh City, David Jackson, CEO of Avison Young Vietnam, said that if geopolitical tensions continue to escalate, international trade, investment flows, and global supply chains will inevitably face disruptions.

“Vietnam will not be immune to these developments, particularly as inflationary pressures, transportation costs, and production expenses could all rise. However, amid such uncertainty, Vietnam is increasingly emerging as a safe and promising investment destination in Southeast Asia and the Asia-Pacific region,” Jackson noted.

“Against this backdrop, the green trend in industrial real estate is unlikely to slow in the face of geopolitical volatility. On the contrary, it will serve as a catalyst for change, helping Vietnam retain high-quality and green capital flows over the long term,” he added.

Additionally, Jackson believed that Vietnam’s stable political foundation, strong economic growth, open investment environment, and an increasingly completed legal framework, particularly following administrative streamlining and the merger of local government units, have reinforced long-term investor confidence.

“A young population, rapid urbanisation, and demand outstripping supply across most real estate segments are also creating significant headroom for business expansion, production, and market growth,” he added.

Notably, foreign investment from the Middle East currently accounts for only a small share of total inflows, meaning the risk of capital withdrawal remains limited.

“The key priority, he noted, is to continue attracting familiar Asian investors from markets such as Singapore, Taiwan, Japan, and South Korea, while further strengthening efforts to draw investors from Europe and the United States,” he added.