Middle East tensions may shift real estate investment to Vietnam: conference

Dang Minh Truong, chairman of Vietnamese real estate developer Sun Group, made the comments at a government conference on economic growth attended by Prime Minister Pham Minh Chinh.

He said instability in the Middle East has prompted some investors to consider shifting capital to other markets, with Southeast Asia, especially Vietnam, seen as a potential destination.

Tensions involving Iran, Israel, and U.S. forces have escalated since late February, disrupting shipping through the Strait of Hormuz and surrounding Gulf waters and pushing up global energy prices.

Truong called for faster development of special economic zones such as Van Don, Van Phong and Phu Quoc, alongside free trade zones and international financial centers, supported by more competitive policies.

He proposed allowing the designation of strategic investors for key projects, extending foreign ownership of property to 50–70 years, and introducing long-term visas of 10–20 years for foreign investors and experts.

Le Anh Son, chief executive of Vietnam Maritime Corporation (VIMC), said rising tensions in the Middle East have pushed up fuel costs, adding pressure on logistics and shipping operations.

Son called for the development of smart ports and increased investment in inland waterway infrastructure to reduce costs and improve efficiency.

Luu Trung Thai, chairman of Military Commercial Joint Stock Bank, said maintaining macroeconomic stability, particularly stable interest rates, is essential to support business investment.

He said lowering lending rates would require controlling banks' operating costs, deposit rates, and bad debt risks.

Prime Minister Pham Minh Chinh said Vietnam faces both opportunities and challenges but must aim for economic growth of 10 percent or higher.

The PM called for stronger cooperation between the state and businesses, including in innovation, digital transformation, and international partnerships.