Vietnam is an important link in the global economy: Savills Global CEO

Sunday, 30/10/2022 10:29
(CPV) - Manufacturing drives GDP growth in Vietnam. While there might be short-term dips with consumer spending dropping elsewhere in the world, the trends driving manufacturing growth will continue, like the shift of manufacturing from China to Vietnam.
 Photo for illustration. (Source: VNA)

Savills Global CEO Mr Ridley has made a two-day visit to Vietnam. Since his last visit in 2019, unprecedented global events have highlighted the vulnerability of the world economy.

However, with forecast GDP growth of 7.5% in 2022, Vietnam outranks most global growth and certainly its regional peers. The significance of his return underscores Vietnam’s international presence.

Data from the General Statistics Office shows that Vietnam’s exports in the first nine months of 2022 reached 282.52 billion USD, increasing from 194.3 billion USD in the same period of 2019. In 2019, Vietnam had GDP growth of 7.2%, but expects to achieve 7.5% in 2022.

Commentators expect Vietnam to be the fastest growing economy in Southeast Asia in 2023. GDP increased by 13.7% YoY in the third quarter, resulting in growth in the first nine months of 8.8% YoY, the highest nine-month results in 12 years. Vietnam’s upgraded GDP forecast bucks the slowing trend elsewhere in Asia.

Mark Ridley said: “There will be more global interest than ever before. Globally, GDP growth will sit at about 2.5% in 2023, and developed markets like the UK and Europe are forecast to be in recession for the next two quarters. This will drive foreign interest as investors seek growth opportunities, and Vietnam presents these in abundance.”

Mr Neil MacGregor, Managing Director, Savills Vietnam, commented: “Mr Ridley’s trip highlights Vietnam’s appeal, both for Savills and foreign investors. Savills has dominated European markets and is now forging its way in the East, with a strong representation in Southeast Asia. Vietnam is seeing robust growth, much like established countries like Korea have seen over the last two decades.”

The pandemic has highlighted how quickly the world changes. Implementing smart strategy is essential.  As Global CEO, Mr Ridley has a considered understanding of global markets.

He added: “The global economy is facing strong headwinds with geopolitical tensions, rising inflation, and a spending slowdown in major European markets and the US. However, Vietnam’s political stability, sustained infrastructure spending, young population, and good trade placement put it in a strong position.”

Mr Ridley commented: “The growth we are seeing in Vietnam is vital to global performance. Its residential market has opportunities to expand even further. Real estate related to supply chains or fulfilment has been exciting, and we are seeing opportunities for data centres and niche areas like cold supply chains. Occupier services present opportunities for investors and end-users from diverse sectors from manufacturing and real estate to tech and logistics. We are seeing increased demand for environmental consultancy, which will influence the real estate people occupy and how they use it./.”