The industrial real estate sector has good prospects in 2023 due to short supply, a shift in the supply chain to Vietnam and its favourable investment policies, experts said.
The Ho Chi Minh City Industrial and Export Processing Zones Management Board (HEPZA) has set a target to increase the average investment per hectare of industrial land to 15 million USD by 2025 from the current 6.32 million USD.
The supply of industrial property in the south is expected to rise further in the next five years to capitalise on the increasing demand in the region, and further strengthen its leading position in terms of supply, according to JLL Vietnam.
The sudden increase in demand for land, factories, and warehouses in Vietnam has pushed up rental costs at industrial parks (IPs) near major cities, according to Savills Vietnam.
There is a rising wave of converting rubber plantations into industrial land as developers eye spots for industrial zones to capture opportunities from global value chains.
Industrial park infrastructure development companies continue to do well amid the COVID-19 pandemic, and the industrial property sector is expected to thrive since Vietnam is considered among the most attractive investment destinations post-pandemic.
Industrial property in the Northern Key Economic Zone (NKEZ) saw strong development in the third quarter of this year, according to Jones Lang LaSalle firm (JLL Vietnam).
Industrial land in Vietnam has continued expanding since the beginning of this year, despite uncertainty over the future of the Trans-Pacific Partnership (TPP) after the withdrawal of US support for the deal.
Aside from garments, aquaculture and agriculture, the property-related sectors like industrial parks and logistics will enjoy the positive effects of the Trans-Pacific Partnership agreement.
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