With the impact of free trade agreements and capital inflows into Vietnam, Vietnam industrial real estate and logistics are the segments that have grown most rapidly recently.
As a multidisciplinary investment group of Singapore, Sembcorp Development entered Vietnam very early. In 1996, Sembcorp shook hands with Becamex IDC Vietnam Company to establish a joint venture: Vietnam – Singapore Industrial Park (VSIP).
Up to now, VSIP has developed a total of 9 VSIP projects across the country, with a total land fund of more than 8,600 ha, providing production infrastructure for nearly 900 enterprises with a total investment of more than 15 billion USD.
In addition to industrial parks, VSIP is also a pioneer in the construction of urban services and commercial areas, which are planned synchronously along the industrial zones. Currently, VSIP has been developing dozens of such projects to serve the community of experts, employees and local workers as well as industrial zones developed by VSIP.
Also coming from Singapore, Ascendas joint venture with Protrade Company to develop and manage the 500-hectare Protrade International Industrial Park in Binh Duong province and Saigon OneHub Project located in Ho Chi Minh City High-Tech Park (SHTP).
The Protrade International Industrial Park project is built according to international quality standards with a centralized wastewater treatment plant, full facilities, complete infrastructure, providing ready-built and custom-built factories.
Meanwhile, OneHub Saigon is a commercial office complex with an area of 12 hectares, located at the gateway of SHTP.
Designed to meet international green standards, the complex is an ideal choice for companies in information technology, high technology and supporting industries…
Many foreign investors are actively looking for investment opportunities in Vietnam’s industrial real estate market. In particular, many investors chose Binh Duong and Dong Nai to establish manufacturing companies, thanks to the availability of a foundation for production development.
Boustead Projects Limited launched its first ready-built factory project in Nhon Trach 2 Industrial Park in 2018. The factory at phase 1 covers an area of 6 hectares, has been designed and built under the supervision of the team of experts. Currently, this investor is implementing phase 2, with many sustainable and environmentally friendly solutions. This phase is expected to complete and welcome tenants in the third quarter of 2021.
In addition, Mapletree Group, another Singaporean investor, owns and manages total assets of more than 1 billion SGD (719.2 million USD) worth of assets in Vietnam, with a section stretches from Hanoi, Ho Chi Minh City, Binh Duong and Bac Ninh, with 8 real estate and logistics projects.
The wave of shifting and expanding production of foreign investors, including Singaporean investors, is opening great opportunities for Vietnam’s industrial real estate.
In particular, the Covid-19 outbreak caused supply chain disruptions and made international investors more interested in expanding plans, setting up company, branches or production facilities in Southeast Asian countries, in which Vietnam is a reasonable investment destination.
According to Senior Director of Savills Vietnam, Vietnam is always an attractive destination for foreign businesses with a young, more mobile workforce than some other countries in the region, reasonable labor costs.
In addition, there are advantages such as infrastructure, seaports, upgraded transportation system, political stability…
According to the latest report of JLL Real Estate Consulting Company (Vietnam), the total leased land area of the southern provinces is at 25,045 ha in the second quarter of 2020. Supply is filling up rapidly due to soaring demand. Land rent in industrial zones averaged 106 USD / m2 / rental cycle, up 9.7% over the same period last year. The rental price of the ready-built factory is stable at 3.5 – 5 USD / m2 / month.
While the pandemic remains a threat, rental negotiations and new requirements are expected to continue to stall until the end of 2020. However, experts say, the market will quickly recover. right after the situation is under control. A strong industrial development base coupled with an ongoing diversified sourcing trend promises to help bring Vietnam to a new level in the industrial property development market.
According to the latest report of JLL Real Estate Consulting Company (Vietnam), the total leased land area of the southern provinces is 25,045 ha in the second quarter of 2020. Supply is filling up rapidly due to soaring demand. Land rent in industrial zones averaged 106 USD/m2/rental cycle, up 9.7% over the same period last year. The rental price of the ready-built factory is stable at 3.5 – 5 USD/m2/month.
While the pandemic remains a threat, rental negotiations and new requirements are expected to continue to stall until the end of 2020. However, according to experts, the market will quickly recover right after the situation is under control. A strong industrial development base coupled with an ongoing diversified sourcing trend promises to help bring Vietnam to a new level in the industrial property development market.
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