VIETNAM FEARLESS FORECAST 2025: BOLD GLITZ, HARD GRINDS, GAME CHANGERS
Arcadia Consulting, a boutique real estate brokerage and advisory firm, recently unveils its annual Fearless Forecast 2025 in Ho Chi Minh City on 21st November 2024. As Vietnam’s real estate market faces increasing challenges, insights from Marc Townsend, Senior Advisor at Arcadia Consulting signal a recalibration, urging investors to consider regional and global opportunities amid economic shifts.
Charting New Paths for Vietnam’s Economic Growth Amid Global Shifts
Vietnam’s continued economic growth depends on exploring diverse, resilient growth strategies. Townsend stresses that leveraging new sectors demands a strategic mindset shift. He comments, “Vietnam’s shift from textiles, at 16% of GDP in 2019, to a burgeoning tech sector that contributed 16.5% of GDP in 2023, shows its potential. However, we need forward-thinking strategies to move beyond industrial production, manufacturing, and coastal condominium projects for continued success.” Townsend highlights two real estate sectors, Purpose-Built Student Accommodation and Senior Living, as promising opportunities for sustainable development. “We must adapt in anticipation of future challenges, including competing manufacturing hubs and an evolving regulatory landscape. Vietnam ranked 26 out of 50 economies in the regulatory part of the World Bank’s 2024 Business Ready report, reflecting a significant effort, but that still lags behind the Philippines and Singapore,” says Townsend.
Exploring Overseas Opportunities for Growth and Diversification
Vietnam’s largest companies are expanding overseas, and as Vietnam navigates a changing economic landscape, Arcadia Consulting suggests that Vietnamese entrepreneurs, investors, and families be their own consultants. Townsend said “Everyone should be their own consultant. While Vietnam holds significant growth potential, exploring alternative investment strategies and overseas markets can help diversify risk and acquire stable returns outside traditional avenues.” Townsend went on to say that as Vietnamese garment manufacturers should look at factories in Bangladesh, and tech companies should be looking at factories in China and Korea, so should real estate investors explore regional trends affecting their industry.
Seizing Opportunity: Adaptability in a Shifting Market
“Adaptable businesses will find opportunities to thrive by incorporating regional and global trends into their strategies,” says Townsend. A swift, automatic recovery is not coming this time, as current challenges – including delays in project approvals and rising financing costs – limit the potential for rapid recovery. He emphasizes two real estate sectors, Purpose-Built Student Accommodation and Senior Living, as promising opportunities for sustainable development, “Vietnam’s real estate market must be ready to adapt as it enters a phase of significant restructuring.”
Evolution: From Garments to Tech—What’s Vietnam’s Next Act?
Vietnam’s manufacturing sector has successfully evolved from a focus on garments to becoming a significant player in tech. However, with global shifts – such as the Make in India initiative and America’s moves to reshore manufacturing – Vietnam now faces a pivotal moment in deciding its next act. “The World Intellectual Property Organization’s 2024 Global Innovation Index ranked Vietnam #2 for lower-middle income countries, and 46 out of 133 countries overall, highlighting immense opportunities in sectors like semiconductors, AI, and renewable energy. However, tapping into these growth areas will require a shift in mindset,” says Townsend. “What worked in the past won’t be enough. The UN is projecting that 25% of Vietnam’s population will be over 60 by the time today’s babies are out of university. New sectors like Senior Living and PBSA will need the kind of strategic focus and support that fueled growth in earlier industries, and proactive adaptation will be essential for Vietnam to remain competitive.”
Arcadia Consulting’s 2025 Fearless Forecast promotes adaptive, practical solutions for current events affecting Vietnam. Drawing on market sentiment and deep expertise, Arcadia Consulting provides insights shaped by global, regional, and local dynamics, adapting global trends to positioning investors to leverage Vietnam’s role within a larger, interconnected landscape.
About Marc Townsend
Marc has over 30 years of experience in real estate investment and development in leading roles for Regus and CBRE in Singapore, Ho Chi Minh City, Hanoi, Manila, Phnom Penh and Hong Kong. In addition to his responsibilities at Arcadia Consulting, Marc is an advisor to Asia Green Real Estate, serves as Chairman of CBRE Cambodia, and is The Creator of Opportunities at Levitate. Marc also served as an independent non-executive director at Vingroup, and more recently with Vinpearl. Marc is a member of MRICS, holds a Bachelor in Accountancy Studies from the University of Exeter and is a graduate from the Executive Course in Real Estate Management at Harvard Business School.
About Arcadia Consulting
Arcadia Consulting is a boutique real estate brokerage and advisory firm. We specialize in the marketing of exclusive local and international developments, luxury residences, investment sales brokerage, and deal sourcing. Our services enable our clients to make informed decisions about the portfolio they own, the properties they are considering investing in or the buildings they occupy. Arcadia Consulting’s diverse and deep experiences enhance the property advice we offer, empowering our clients to make the right and timely choices for their real estate. We are operating in Singapore and Vietnam. For inquiry and partner with us, visit us at https://arcadia-consult.com/ or send a note to [email protected]
