Vietnam's industrial real estate market has plenty of room to develop with more diversified areas such as data centres, cold storage and logistics. (Source: VNA) These numbers reveal the attractiveness of thesector, especially industrial real estate, according to experts.
Data from the ForeignInvestment Agency under the Ministry of Planning and Investment showed that asof March 20, total foreign capital from investors into Vietnam reachednearly 5.45 billion USD, equivalent to only 61.2% of that in the same periodlast year.
However, experts saidthat small and medium-scale foreign investors are still confident in Vietnam's investment environment and continue to invest in new projects in thecountry, mostly in localities with high potential.
Tran Khanh Quang,General Director of the Viet An Hoa Real Estate Investment JSC, said that the stronginvestment in real estate reflects investor trust in the country's environment in general and the property market in particular.
Notably, theindustrial real estate segment has witnessed a boom again in Vietnam after atwo-year hiatus due to the COVID-19 pandemic, he said, adding that Vietnam hasgained great attention from global manufacturers with large investment demands,especially in the fields of technology, green energy, and logistics.
Although many expertsasserted that FDI investment in 2023 may slow down due to the economicrecession, others held that Vietnam's industrial real estate market can stilllure investors thanks to its advantages such as labour, population, infrastructuredevelopment, incentives for foreign investors as well as the Government'sefforts in maintaining macroeconomic stability.
John Campbell, head ofIndustrial Services at Savills Vietnam, analysed that Vietnam's real estate market is benefiting fromthe advantages of the border opening process, the stable exchange rate andattractive corporate tax rates.
According to a Savillsreport, in the fourth quarter of 2022, many big deals were implemented. In the south, Matsuya R&D from Japan invested an additional 6.7 million USD in theproduction line in the Ho Nai Industrial Park in Dong Nai province.
Meanwhile, GiantManufacturing from Taiwan (China) also poured an additional 13 million USD into VSIP 2 industrial park in Binh Duong province.
In the north, TaihanPrecision Technology invested 5.3 million USD in Cam Giang district, HaiDuong province.
Recently, a delegationof 52 US businesses including Boeing, Coca-Cola, Meta, SpaceX, Netflix, Applevisited Vietnam to seek business and cooperation opportunities, showing theconfidence of international investors in the Vietnamese economy as well as Vietnam'spotential to become the world's new production centre in the fields ofelectronics, technology or high-value industries.
Campbell pointed outthat seeking industrial land is becoming a difficult problem forbusinesses, as the occupancy rate is always high.
He noted that in somesouthern provinces such as Binh Duong or Dong Nai, the occupancy rate is alwaysabove 95%. Meanwhile in the north, provinces with developed industrial realestate markets such as Bac Giang and Bac Ninh see high demand withoccupancy rates ranging from 96% to 99%.
Illustrative photo (Source: baodautu.vn) According Campell, in the context of thelimited occupancy rate in existing industrial parks, it is affecting the leasing oflarge areas. Addionally, the market's new supply is also modest.
He believes thatVietnam's industrial real estate market has plenty of room to develop with morediversified areas such as data centres, cold storage and logistics. Key opportunitiesin the logistics industry include last-mile delivery and the implementation ofthe 4.0 logistics system, he said./.
Campbell pointed outthat seeking industrial land is becoming a difficult problem forbusinesses, as the occupancy rate is always high.
He noted that in somesouthern provinces such as Binh Duong or Dong Nai, the occupancy rate is alwaysabove 95%. Meanwhile in the north, provinces with developed industrial realestate markets such as Bac Giang and Bac Ninh see high demand withoccupancy rates ranging from 96% to 99%.
Illustrative photo (Source: baodautu.vn) He believes thatVietnam's industrial real estate market has plenty of room to develop with morediversified areas such as data centres, cold storage and logistics. Key opportunitiesin the logistics industry include last-mile delivery and the implementation ofthe 4.0 logistics system, he said./.
VNA
