Industry Report

Trade tensions have eased, and FDI inflows show signs of recovery following the official announcement by the U.S. of reciprocal tariffs on its trading partners. As U.S. tariffs imposed on Vietnamese imports are not significantly different from those applied to other countries in the region, we believe Vietnam remains an attractive destination for FDI, despite higher tariff levels than before;
We see opportunities for the industrial park market to recover in 2026. IP developers are rapidly expanding their landbanks, tenants have resumed lease negotiations, and several large-scale FDI projects are being proposed. However, challenges remain, stemming from the U.S.’s high tariff policies and risks related to the origin of “transshipment” goods;
Within our coverage universe, we observe that industrial park stocks are trading at attractive valuation levels, at a deep discount compared to pre-tariff-shock levels. We believe this is an appropriate phase to accumulate IP stocks ahead of the sector’s recovery. We favor companies with large undeveloped landbanks and strong execution capabilities for new projects, notably KBC and IDC.