Industrial real estate revived with investment wave
According to VARS, despite the ups and downs of the economy due to the impact of the pandemic, Vietnam's industrial real estate has remained a strong and sustainable growth segment in recent years.
An industrial park in Bac Ninh. (Source: VNA)
The revival of industrial real estate along with the wave of investment is the assessment of the Real Estate Brokers Association (VARS) about the market.
VARS cited Vinhomes IZ - Vinhomes's subsidiary in the field of industrial real estate has increased its charter capital from 70 billion VND to 18,500 billion VND in just 2 years, nearly double the 10,000 billion VND expected previously. . Along with that, during Prime Minister Pham Minh Chinh's recent visit and working visit to the United States, the Head of Government had many meetings with big businesses here and received a lot of positive information.
For example, Apple CEO Tim Cook said that the company wants to expand its supply chain and coordinate with Vietnamese businesses that have the conditions and standards to participate in Apple's value chain.
Besides, in the first quarter of 2022, the war between Russia and Ukraine along with China's "zero COVID" policy affected the global economy; The production chain is broken, costs and transportation times increase... Thereby, boosting the high demand for warehouses and factories right in the consuming markets, VARS commented.
Meanwhile, the stable economic, political and social situation, large purchasing power and preferential policies from the Government have helped Vietnam become one of the new destinations for multinational manufacturing enterprises. . In 2021, despite the devastation of the COVID-19 epidemic, the total foreign investment capital into Vietnam still reached over 31 billion USD, up 9.2% compared to 2020; in which, the real estate sector alone reached 2.6 billion USD.
The bright spot of the market is still the industrial real estate segment. According to VARS, despite the ups and downs of the economy due to the impact of the pandemic, Vietnam's industrial real estate has remained a strong and sustainable growth segment in recent years.
By the end of 2022, Binh Duong and Dong Nai will have 2 new industrial parks, VSIP III and AMATA Long Thanh, completed and ready for lease. VSIP III has just started construction in the second half of March 2022, Lego Group (Denmark) has registered to build a factory worth 1 billion USD.
Regarding the market of ready-built factories and warehouses in the South, there are also many projects built and will be completed in 2022 with prominent names such as SLP, BWID, Vietnam Industrial Park, JD.com... , providing the market with an additional 800,000 m2 of warehouse area.
Due to high demand, the occupancy rate of Southern Industrial Parks has always remained high (90%), rental rates are stable thanks to the growth of supply. Particularly in Long An province, thanks to convenient transportation connecting from Ho Chi Minh City, the factory rental price increased sharply from 21-45% over the same period last year.
Industries that are in great demand for factories include: logistics, electronics, furniture and medical equipment. In the North, the industrial real estate market also experienced similar developments with occupancy rates continuing to remain high even in the context of constantly expanding supply. Specifically, the occupancy rate of industrial parks in the first quarter of 2022 in the Northern region reached 85%, up 5 percentage points over the same period, ready-built factories reached 98%.
According to the Department of Competition and Consumer Protection under the Ministry of Industry and Trade, as of mid-February 2022, the Northern region has about 63,500 hectares of industrial land put into planning with 238 industrial zones and clusters already in operation. and under construction.
Mr. Matthew Powell, Director of Savills Hanoi commented: "Vietnam's market contains many attractive investment factors. However, businesses are facing high competition to find suitable locations. Public real estate Industry is still concentrated in areas adjacent to large urban areas such as Hanoi and Ho Chi Minh City and has convenient connections to airports and ports, which makes the supply in these areas become scarce. rare and push up land prices.
Depending on the characteristics of each industry, investors will find different development opportunities and advantages in each location because each field will have its own requirements. Many businesses prioritize the criteria of large area, low land price and accessibility to seaports and airports. Therefore, in order to facilitate investment promotion in the provinces, Vietnam needs to perfect the transport network, improve infrastructure as well as issue economic support policies. From there, FDI capital into the manufacturing sector will be spread evenly throughout the country."
According to Savills Vietnam, over the past time, real estate developers have grasped the supply gap and are adding more products to the market. As a result, manufacturing enterprises will have more options when operating in Vietnam. However, investors still have to consider different environmental factors, find out the locations they want to deploy, and the research process takes a certain amount of time.
According to Thu Hang (VNA/Vietnam+)
Original link: https://www.vietnamplus.vn/bat-dong-san-cong-nghiep-hoi-sinh-cung-lan-song-dau-tu/791728.vnp
