Phat Dat Real Estate Development Corporation (HoSe: PDR) joins Vietnam in post-pandemic economic recovery.
Over the past two years, Vietnam has had many ups and downs due to Covid-19. Like other countries around the world, its economy has been hit by infections, nationwide lockdowns, border closures and a global slowdown.
Yet throughout this period, Vietnam’s real estate sector has proven surprisingly resilient. According to Cushmasn & Wakefields, apartment prices in Ho Chi Minh City increased by 90% from 2017 to 2020, while industrial land rentals increased by 10% in 2020. And the real estate sector managed to maintain a level increased year after year. year’s growth momentum, despite the challenges.
These encouraging figures build on Vietnam’s relatively excellent performance amid a global pandemic. While many countries in the region entered recession, the Vietnamese economy still managed to post positive growth of more than 2%.
As a result, analysts expect healthy growth in Vietnam even as the world slowly recovers from the Covid-19 crisis. Its GDP is expected to grow by around 6% in 2022, making it one of the fastest growing economies in Asia. Combined with continued strong demand for residential and industrial properties, it makes the opportunities in Vietnam’s real estate sector the most promising.
This is where Phat Dat Real Estate Development Corporation, an award-winning real estate developer, comes in. With a market capitalization of over US$2 billion (as of the end of 2021), Phat Dat is part of the VN30 Large-Cap Group, and it plans to contribute to Vietnam’s booming economy.
With its expertise in coastal real estate development and based on a firm belief in the strong potential of the Vietnamese real estate sector, the developer is moving forward with its investment strategy in the provinces of Vietnam, from residential and industrial to warehousing and logistics.
BUILDING LIFE VALUES IN VIETNAM
Demand for residential properties across Vietnam – especially along the coastal regions – has been promising. In fact, supply shortages and overwhelming demand have been reported, thanks to strong interest from foreign investors and local citizens, and earlier construction delays.
Be it affordable homes or luxury residences, more homes are needed across Vietnam. The country’s middle class is growing rapidly due to economic progress; It is estimated that some 1.5 to 2 million people will join this group each year, further increasing the demand for real estate.
Phat Dat thus aims to take advantage of opportunities for urban renewal and development in emerging administrative and financial centers across the country, with a view to expanding its operating markets and diversifying its portfolio. Among other developments, it plans to build high-end apartments in Ho Chi Minh City, well-planned townships in second-tier cities, and related infrastructure in popular tourist destinations such as Da Nang, Binh Dinh, Quang Ngai, Phu Yen, Ba Ria-Vung Tau and Phu Quoc; especially mentioning the project at No. 223 Tran Phu street in Da Nang city, Bac Ha Thanh residential area in Binh Dinh province, Bo Bac residential area in Quang Ngai province, the projects Poulo Condor, Tropicana, and Phuoc Hai in Ba Ria Vung Tau Province, and Binh Duong Tower in Binh Duong Province, among others.
Astral City in Binh Duong
VIETNAM INDUSTRY GROWTH
As a cheap and high-quality alternative to countries in the region, Vietnam has become a favorite location for manufacturers. Many companies have moved their production to the country, which has boosted the country’s foreign investment as well as the industrial property market. Such growth is driving demand for industrial parks, supporting infrastructure, as well as office space in major coastal cities like Ho Chi Minh City, Da Nang and Hanoi.
The industrial sector will be one of the main pillars of Phat Dat’s development plans over the next few years, as it seeks to capitalize on Vietnam’s potential by attracting foreign investment and expanding domestic production.
At present, PDR already plans to launch three industrial projects in 2023, including Tai Tien general warehousing, port logistics and logistics services in Ba Ria Vung Tau; Dau Tieng Industrial Township in Binh Duong; and Cao Lanh Industrial Parks in Dong Thap. Like its other developments, these industrial parks and residential properties will have the latest infrastructure while balancing the benefits for stakeholders with social responsibilities, ensuring that the company will contribute to Vietnam’s socio-economic development in a sustainable manner.
MEETING VIETNAM’S WAREHOUSING AND LOGISTICS NEEDS
With the growth of manufacturing and production, quality warehousing and logistics support facilities will be essential to ensure that producers, distributors and exporters are well connected to transportation and trade hubs.
Anticipating such needs, Phat Dat plans to acquire and accumulate land reserves in key economic areas, especially those strategically located near international airports and seaports. These spaces will facilitate the promoter’s projects to build logistics real estate to the international standards required by international and local partners. Phat Dat’s range ranges from networks of factories and warehouses to associated infrastructures that allow the management of complete logistics solutions for customers and investors.
JOINT RECOVERY OF VIETNAM’S ECONOMY
With its solid foundation, vast experience and detailed plans, Phat Dat hopes to take full advantage of the opportunities that abound in Vietnam as the country looks forward to post-pandemic growth. With its expertise in the field of real estate, it believes that it has strong prospects for success and a key role to play in reviving the Vietnamese economy in the long term.