Apartment and office buildings in Hanoi. Photo by Shutterstock/French Jessica Lee.
Housing, industrial real estate, seafood, power, and steel are the sectors expected to see growth next year as the economy recovers from the effects of Covid-19.
Demand for mid-priced apartments in Hanoi and Ho Chi Minh City due to a shortage will continue to drive the growth of the housing sector next year, financial services data provider FiinGroup said in a recent note.
Market leader Vinhomes, which accounts for two thirds of the sector’s profits, is likely to see revenues grow with the scheduled launch of three major projects in the two cities.
Launches by others like Khang Dien House and Dat Xanh Group are expected to cause a surge in their revenues in the third and fourth quarters of 2021.
A new decree to take effect in January is expected to resolve the legal obstacles currently plaguing the sector and help developers restart some stalled housing projects, the report said.
Industrial real estate will continue to see growing demand thanks to the move by companies from China to Southeast Asian countries, including Vietnam.
Some developers like Sonadezi Chau Duc and Kinh Bac City Development have plans for expansion with their large land ownership and convenient transport infrastructure.
As industrialized provinces like Bac Ninh in the north and Dong Nai in the south are running out of industrial land, developers are branching out to their neighboring areas where large tracts are available at competitive prices.
The EU-Vietnam Free Trade Agreement is likely to boost shrimp exports next year, FiinGroup said.
Seafood companies are expected to see growth next year thanks to shrimp exports, which grew by 14 percent year-on-year in the first 11 months of this year despite the pandemic, according to the Vietnam Association of Seafood Exporters and Producers.
In the power sector, hydropower plants are expected to benefit from high water levels in rivers from now until mid-2021 while new gas discoveries in the Sao Vang-Dai Nguyet field off the southern coast will benefit state-owned PetroVietnam Gas Corp.
In the steel industry, exports are set to be the main driver of growth as China’s demand increases with economic recovery, which is likely to benefit Hoa Phat Group, which accounts for a third of Vietnam’s domestic market, the report added.