Sustainable Investment: ESG drives new capital flows into the market

That was the key message shared by Mr. Michael Piro, CEO of Indochina Capital, in an interview with Đầu tư Chứng khoán on the new generation of FDI inflows and current investor appetite.

Closely following market developments, have you noticed any new investment trends?

Ông Michael Piro.

In recent months, while working with our partners, we have observed the emergence of new capital inflows from countries that previously had little or no large-scale investment in Vietnam — as well as significant expansion from existing investors.

This means new capital is now coming not only from traditional sources but also from new markets.

For example, investors from Sweden, Malaysia, and Singapore are actively developing green manufacturing and supply chain projects or those with strict origin-tracing requirements.

At Core5 Vietnam projects — including Core5 Hải Phòng, Core5 Quảng Ninh, and Core5 Hưng Yên — we have recorded strong occupancy rates for ready-built factories and warehouses ranging from 2,000 to 10,000 m².

Tenants come from a wide range of countries, including first-time investors in Vietnam and companies rapidly expanding their supply chains across Southeast Asia.

Which products are most preferred by Tenants?

We have observed that the ready-built factory and warehouse segment continues to be highly valued and remains the dominant choice in the short to medium term.

Tenants place strong confidence in projects that offer quality, strategic locations, and export potential.

The key reason why this segment has emerged as a rising star among SME investors is Vietnam’s growing advantage as an alternative destination in the global supply chain.

Ready-built facilities help optimize initial costs, reduce risks, and shorten setup time — eliminating the need for investors to handle complex administrative procedures that typically take 6 to 12 months.

At Core5 Vietnam projects — including Core5 Hải Phòng, Core5 Quảng Ninh, and Core5 Hưng Yên — we have recorded very high occupancy rates in factory and warehouse units ranging from 2,000 to 10,000 m².

Our tenants come from a diverse range of countries, including first-time investors entering Vietnam and companies rapidly expanding their supply chains across Southeast Asia.

How about the quality of investment projects — Has the high-tech component improved?

The proportion of high-tech projects in Vietnam has increased significantly compared to previous years, with the presence of global giants such as Apple, Foxconn, Pegatron, Goertek, and Samsung.

These corporations are investing in electronics, semiconductor components, medical equipment, and precision manufacturing, signaling a clear shift toward higher value-added production.

What opportunities does the administrative merger bring to the industrial real estate market?

The merger of administrative units is opening up new positive opportunities for the industrial real estate market in general, and for our projects in particular.

First, this process allows for more unified and expansive master planning, paving the way for the formation of large-scale interconnected industrial clusters instead of being restricted by fragmented administrative boundaries as before.

At the same time, when districts and communes are consolidated into unified entities, administrative procedures — from investment and construction approvals to fire safety and environmental permits — are streamlined, helping investors save both time and costs.

For Core5 projects in Quảng Ninh, Hưng Yên, and Hải Phòng, these local administrative reforms — together with infrastructure upgrades in transportation, power supply, and wastewater treatment — have significantly enhanced competitiveness in attracting new tenants.

We see this as an opportunity to scale up operations, improve facility management services, and increase the long-term value of the industrial projects developed jointly by Indochina Capital and Kajima.

Has the current context brought changes to investor appetite?

In my opinion, there have been several notable shifts in investor preferences in recent years:

International investors are placing greater emphasis on compliance with rules of origin, input documentation, transparency, and ESG responsibility when building their supply chains.

Projects with high-tech components, or those focused on sustainability, green development, and export-oriented value chains, are now being prioritized.

While preferential policies remain a key attraction, investors have become increasingly sensitive to policy risks and regulatory changes. Hence, clear commitments and policy stability are essential.

Given these factors, if Vietnam continues to strengthen its legal framework, strictly enforces origin-related regulations, and ensures that key export sectors remain resilient, FDI inflows will continue—perhaps at a slower pace in certain industries, but with a shift toward less affected or supporting sectors that help meet origin and sustainability requirements.

How are enterprises preparing to meet rising customer expectations?

To meet these evolving needs, Core5 Vietnam provides a system of international-standard ready-built factories and warehouses that are LEED Silver-certified, flexible, and environmentally friendly.

Each facility is designed to support precision manufacturing and logistics operations, featuring:

• Floor loading capacity: 3–5 tons/m²

• Ceiling height: 10–12 meters

• Fire safety standard: NFPA (U.S.)

• Flexible layout: customizable modules that can be split or combined based on tenant requirements

In addition, Core5 Vietnam offers flexible leasing policies and comprehensive technical, legal, and operational support to attract new tenants and retain existing ones.

Looking ahead, we will launch a new generation of ready-built factories in Hải Phòng, providing much-needed high-quality industrial supply to one of Vietnam’s most promising industrial real estate markets.

Theo Tinnhanhchungkhoan.vn

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