Want to be in the loop?
subscribe to
our notification
Business News
DEMAND FOR INDUSTRIAL LAND FOR RENT REMAINS HIGH
The demand for industrial land for rent in Vietnam will remain high this year thanks to policies promoting investment in the country, experts said.
Due to short supply, rental prices for industrial land are expected to continue to rise by an average of 8-20% year-on-year in 2023, depending on the region, according to a report by the SSI Securities Corporation.
Last year, industrial real estate rents rose by an average of 10% due to high demand, according to the report.
Trang Minh Ha, chairman of the North Stars Asia Company, said that in Vietnam, industrial real estate leasing has seen a hike in demand and rental prices, especially for logistics and warehousing.
The industrial land-for-rent market is likely to remain strong over the next 12 months, she added.
Demand for industrial land has surged as the occupancy rate in industrial hubs has reached almost 100%, she said.
Many ready-built warehouses, factories and logistics and data centres are being built in industrial parks (IPs) across the nation, she added.
The average rent for industrial land in the southern region was 159 USD per square metre in the last quarter of 2022, up 3% over the previous quarter and 10% year-on-year, according to global real estate services firm Cushman and Wakefield.
The highest rent in Ho Chi Minh City was 300 USD per sqm. The occupancy rate increased to 92% from 91%. The average rent in Binh Duong and Long An provinces was 180 USD.
According to the Ministry of Planning and Investment, Vietnam has 292 industrial parks with a total land area of 87,100ha and 106 more are under construction.
They are home to some 10,000 domestic companies and 11,000 foreign-owned firms that have invested over 340 billion USD.
Vietnam continues to be an appealing destination for industrial real estate investors, according to Cushman and Wakefield.
The firm attributed this to the country’s stable growth rate, an export-oriented economy, a young labour force, investment incentives, a strategic location and a positive economic outlook.
Source: VIR
Related News
![Card image cap](/uploads/news/Eco4.jpg)
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
![Card image cap](/uploads/news/FDI.jpg)
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.
![Card image cap](/uploads/news/Eco3%20%281%29.jpg)
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.
![Card image cap](/uploads/news/Eco8.jpg)
SPECIAL POLICIES PROPOSED TO DEVELOP THE SEMICONDUCTOR INDUSTRY
The draft law has proposed a number of outstanding policies to promote the development of the digital technology industry, develop the brand of Việt Nam's digital technology industry and develop domestic and foreign markets, as well as investing, purchasing and selecting suppliers of digital technology products and services using State budget capital.
![Card image cap](/uploads/news/FDI3%20%281%29.jpg)
CONGLOMERATES AID FOREIGN MANUFACTURING INVESTMENT
The manufacturing and processing sector is attracting major investment from abroad, thanks to the expansion of key conglomerates, especially from South Korea. With total revenues of about $16.2 billion and profit of $400 million last year, Hyosung Group, which works in textiles and garments, industrial materials, IT, construction, and chemicals, has expressed its plan to expand operations in Vietnam.
![Card image cap](/uploads/news/CN40.jpg)
ESTABLISHING NATIONAL COMPREHENSIVE DATABASE FOR DIGITAL TRANSFORMATION
Vietnam's Ministry of Public Security is drafting the data law project to unify, synchronize and effectively use data for administration and social economic development, for digital government development and for administrative procedure reform.