With the expectation of FDI growth, focusing on high-tech projects and sustainable development, experts said t...
With the expectation of FDI growth, focusing on high-tech projects and sustainable development, experts said that the industrial real estate market will see positive changes.
Attracting FDI
After a two-year hiatus due to the COVID-19 pandemic, the industrial real estate market has rebounded. Although the global economy is facing many difficulties and the expectation of a decline in growth, Vietnam is still considered a stable attraction for foreign investment (FDI).
Foreign investment capital in Vietnam will continue to increase in the first 9 months of 2023. Photo credit: Vneconomy
The market is witnessing interest from global manufacturers with a strong demand for investment in the fields of technology, green energy, logistics,...
In CBRE Vietnam's latest report, it should be noted that the area of industrial land in the North and South is reaching an all-time high in the first 9 months of 2023. It should be noted that the area of industrial land absorbed by both the South and the North in the first 9 months of 2023 reached a record level, exceeding 50% compared to 2022 in the North and 20% in the South. Thus, the occupancy rate of industrial parks in the southern industrial market averaged 81.9%. Industries such as chemicals, electronics, rubber... with large transactions from Chinese and Japanese companies. In the northern region, in terms of demand, the market continues to record large transactions from tenants in the plastics and textile manufacturing industry.
Industrial land rental prices are expected to increase by 6 to 10 per cent per year in the North and 4 to 8 per cent per year in the South over the next two years. Experts expect that with the resumption of FDI inflows, industrial real estate companies will sign many new lease agreements with foreign investors.
Acknowledging the current trend, Ms. Pham Ngoc Thien Thanh, Head of the Research and Advisory Department of CBRE Vietnam, said there is a recovery in market demand as the absorption area of the entire market in 2023 is expected to be higher than in 2022.
Mr. John Campbell, Deputy Director, Head of Industrial Services Savills Vietnam. Photo: Savills Vietnam
Mr. John Campbell, Deputy Director and Head of the Industrial Services Department of Savills Vietnam, said that there are many favorable factors for the development of the industrial real estate market, such as the advantages of the border opening process, the stability of Vietnam Dong's exchange rate; Attractive corporate tax rates.
Paul Fisher, Country Manager of JLL Vietnam. Photo: JLL Vietnam
JLL's Country Manager in Vietnam, Paul Fisher, also said that investors have started to "drop money" to close deals in the Vietnamese market, and as such, foreign investment flows are expected to grow strongly in the coming times. JLL's Country Manager in Vietnam, Paul Fisher, also said that investors have started to "drop money" to close deals in the Vietnamese market, and as such, foreign investment flows are expected to grow strongly in the coming times. In addition, Vietnam is improving and investing more and more in improving transport infrastructure for synchronous connectivity
Recently, Vice President of the Vietnam Association of Realtors Tran Van Binh said that under the leadership and support of the government, ministries and branches, the Vietnamese property market is showing significant signs of recovery, including the industrial real estate market when registering the return of investors. According to Binh, as of August 2023, the market for buying and selling real estate and mergers and acquisitions projects have seen greater effervescence.
Experts pointed out that the industrial real estate market in Vietnam still has a lot of room for development. The main opportunities in the fields of data centers, cold storage, logistics are the shortages that need to be developed of new projects, thus increasing new offers, improving competitiveness in the market.
Via Reatimes.vn