Vietnam's industrial sector is experiencing significant transformation, supported by strong foreign direct investment (FDI) flows, large-scale infrastructure projects, and a favourable regulatory environment, thus attracting a new wave of investment from foreign investors, experts have said.

Residential real estate is one of the segments considered by Vietnam Report Joint Stock Company (Vietnam Report) as having strong growth potential in the property market. Accordingly, the new supply and the expectation of a high floor price will increase profit margins for real estate businesses.

As the corporate bond market has shown signs of fast growth, this capital mobilisation channel will be closely inspected and controlled this year.

Residential real estate in Vietnam is still one of the fastest-growing markets in Southeast Asia despite the fact that the COVID-19 pandemic has halted many economic activities, according to experts from property consultant Savills Vietnam.

The country’s apartment inventory was estimated at some 3,300 units by the end of the first quarter of the year, falling 5,700 units compared to the same period last year, according to the Ministry of Construction (MoC).

Property consultants Savills Vietnam have adopted a positive outlook on real estate investment in Vietnam amid the COVID-19 pandemic, saying that when it eases there will be increasing numbers of investors injecting new capital into the sector.