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
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.