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Demand for logistics real estate increases sharply: Savills Vietnam

Vietnam’s logistics industry is developing strongly thanks to the growth of the e-commerce industry, according to Savills Vietnam.
Demand for logistics real estate increases sharply: Savills Vietnam ảnh 1Nam Hai Dinh Vu Port in Hai Phong city. (Photo: VNA)
Hanoi (VNA) – Vietnam’s logistics industry is developing strongly thanks tothe growth of the e-commerce industry, according to Savills Vietnam.

This is one ofthe factors that make the demand for logistics real estate increase sharply, itsaid.

A survey by Savills Vietnam showed that Vietnam's logistics industry isenjoying significant growth due to the development of the national economy, and the manufacturing and e-commerce sectors.

According to a report on the emerging market logistics index released earlier this yearby Agility, a leading logistics and transportation service provider in 2022,Vietnam ranks 11th among the world’s top 50 emerging markets, only behind Indonesia, Malaysia and Thailand in the Association of SoutheastAsia Nations.

Vietnam's transport and logistics market is estimated to grow at a compoundannual growth rate (CAGR) of 7% in the 2021-2026 period. The Vietnamesegovernment encourages enterprises manufacturing and attracts investment byestablishing industrial and economic zones. Despite challenges from theCOVID-19 pandemic, this industry still thrives thanks to opportunities broughtabout by domestic production and consumption, economic growth, free trade agreements (FTAs) and the e-commerce boom.

According to Matthew Powell, Director of Savills Hanoi, Vietnam is adestination for many businesses in the manufacturing and logistics sectors,especially before the development of the e-commerce industry. This is coupledwith an increased demand for high quality industrial real estate.

Currently, many businesses find it difficult in the search for locations fortheir factories and warehouses. Industrial parks and warehouse logistics,especially around big cities like Hanoi, have high occupancy rates evenup to nearly 100% in many places. The supply of industrial real estate is fallingto keep up with the demand of enterprises.

This offers an opportunity for international real estate developers to investin Vietnam, he said.

Many investors are seizing the opportunity to launch products that are suitablefor the market, therefore, the supply shortage will soon be resolved in thecoming months, Powell said./.
VNA
#logistic industry #e-commerce #real estate #Savills Vietnam #Vietnam Plus #Vietnam News Agency
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