Industrial real estate rents surge in HCM City, Hanoi

Rents for industrial lands in HCM City and Hanoi have increased by two and 1.7 times respectively in the third quarter from a year earlier.

Industrial real estate rents surge in HCM City, Hanoi
Vietnam industrial real estate demand has increased in the third quarter of this year. Photo thanhtra.vn

At the recent 2020 Vietnam Industrial Real Estate Forum, Le Trong Hieu, director of industrial and logistics services at CBRE Vietnam, said the rates in HCM City and Hanoi have risen by much more than the 20-30 per cent growth seen in other localities in both the south and north.

In HCM City, some industrial parks that rented land at US$150 per square metre for a 30-45-year lease term now want $300.

In Dong Nai Province, the rents for industrial lands have increased from $110 to $200.

In some provinces in the north, rents have risen though not by as much as in the south.

In Hanoi, for instance, they have increased from $155 to $260, while in Bac Giang Province they have gone up from $55 to $110.

According to Hieu, these "unprecedented" growth rates have been triggered by surging demand and limited supply.

According to a CBRE Vietnam survey, in the past 12 months the demand for leasing land to build factories and warehouses has increased.

Some industries such as electronics, e-commerce, animal feed, etc have expanded their areas.

 

Auto manufacturing and components companies are planning to expand their production facilities in the central region.

Experts said increasing investment by the Government in transport infrastructure, effective handling of the COVID-19 pandemic and US-China trade tensions have encouraged manufacturers to look to Vietnam as an investment destination to diversify their supply chains.

Since the country’s economic reopening after the COVID-19 pandemic was put under control, industrial land for lease has been a key source of business.

To meet the increasing demand of the market, in the north, some industrial land areas such as Bac Giang, Thai Nguyen, and Nam Dinh have been re-planned.

Meanwhile in the south, authorities in Binh Phuoc, Tay Ninh and Binh Thuan provinces are planning to become new industrial clusters.   

There are 279 industrial parks in the country with occupancy of 71.1 per cent, which have created 3.83 million jobs, according to the Ministry of Planning and Investment.

Another 87 are under construction.  VNS

Vietnam emerges as popular industrial property destination: CBRE

Vietnam emerges as popular industrial property destination: CBRE

Vietnam has emerged as a popular destination for industrial property projects as increased labour costs, trade disputes and COVID-19 prompt global manufacturers to vary their supply chains throughout Asia, according to CBRE.  

EVFTA expected to give a lift to real estate sector

EVFTA expected to give a lift to real estate sector

Many segments of the real estate market are soon expected to benefit from the EU-Vietnam Free Trade Agreement, which takes effect in August.

 
 

Other News

.
Vietnam Airlines to sell 11 aircraft
Vietnam Airlines to sell 11 aircraft
BUSINESSicon  04/06/2021 

The national flag carrier Vietnam Airlines has announced the plan to sell 11 A321ceo aircraft made in 2004, 2007 and 2008.

IPs set up, but Vietnam still needs to do more to attract investors
IPs set up, but Vietnam still needs to do more to attract investors
BUSINESSicon  03/06/2021 

There were positive developments of industrial parks in Vietnam in the first five months of the year, but experts still say the country should do more to attract big investors.

CPI growth in Jan-May lowest in five years
CPI growth in Jan-May lowest in five years
BUSINESSicon  03/06/2021 

The country’s consumer price index (CPI) in the first five months of the year grew 1.29% year-on-year, the lowest for the period since 2016, according to the General Statistics Office.

Ministry of Finance proposes keeping fee reductions until end of 2021
Ministry of Finance proposes keeping fee reductions until end of 2021
BUSINESSicon  03/06/2021 

The Ministry of Finance has proposed extending the reduction periods of several fees beyond the current expiration date of June 30.

Nearly 60,000 businesses withdraw from market
Nearly 60,000 businesses withdraw from market
BUSINESSicon  03/06/2021 

The number of newly established enterprises is still increasing, but the rate of businesses withdrawing from the market has also risen.

LG pulls out of smartphone production in Vietnam from today
LG pulls out of smartphone production in Vietnam from today
BUSINESSicon  02/06/2021 

Today, June 1, is the last day that South Korean conglomerate LG produces smartphones in Vietnam before it focuses on making home appliances only.

VIETNAM BUSINESS NEWS JUNE 3
VIETNAM BUSINESS NEWS JUNE 3
BUSINESSicon  03/06/2021 

 Stock market hits historic peaks

Investment into local start-ups expected to rise this year
Investment into local start-ups expected to rise this year
BUSINESSicon  01/06/2021 

The investment capital into Vietnamese start-ups this year would see a breakthrough despite a year-on-year decrease of 48 per cent in 2020 to reach US$451 million.

Businesses seek sources to buy vaccines for their workers
Businesses seek sources to buy vaccines for their workers
FEATUREicon  02/06/2021 

The electronics, textile and garment, footwear, wooden furniture and dairy sectors have proposed that the Government allow them to seek vaccine sources and pay for vaccinations at their enterprises so they can maintain production.

Vaccines yet to come, but biotech share prices escalate
Vaccines yet to come, but biotech share prices escalate
BUSINESSicon  02/06/2021 

Biotech shares, especially the shares of vaccine producers, are being sought by investors.

Selling farm produce online: e-commerce sites compete to attract farmers
Selling farm produce online: e-commerce sites compete to attract farmers
BUSINESSicon  02/06/2021 

For years, farmers had to rely on the wholesale distribution method and could not sell products directly to consumers. But that has changed in recent years.

Money flows strongly into Vietnam’s stock market
Money flows strongly into Vietnam’s stock market
BUSINESSicon  02/06/2021 

The flow of money from several hundred thousand newly-opened accounts into the stock market has expanded the pockets of Vietnamese billionaires by hundreds of millions of US dollars in a short time.

Difficulties facing the country eased by corporate social responsibility activities
Difficulties facing the country eased by corporate social responsibility activities
FEATUREicon  03/06/2021 

After the Covid-19 vaccine fund was established, Vietnamese businesses contributed hundreds of billions of Vietnamese dong. Many companies said they are willing to vaccinate their employees and customers with their own sources.

New master plan for seaports needed to further boost economic development
New master plan for seaports needed to further boost economic development
BUSINESSicon  01/06/2021 

A new master plan for seaports is needed to further boost the country’s socio-economic development in the rapid international integration process, experts have said.

Realty tax needs revamp to ensure fairness
Realty tax needs revamp to ensure fairness
BUSINESSicon  31/05/2021 

Realty tax not only creates sources of collection for the State budget but also is a policy able to spur growth and reduce bribery related to land. Vietnam does have realty tax.

Many companies manufacture components for Samsung, Foxconn resume operations
Many companies manufacture components for Samsung, Foxconn resume operations
BUSINESSicon  01/06/2021 

The Management Board of Industrial Parks of Bac Giang Province has allowed nine enterprises in Van Trung, Dinh Tram and Quang Chau industrial parks in Viet Yen district, Vietnam’s largest epidemic hotspot, to resume operations.

VIETNAM BUSINESS NEWS JUNE 1
VIETNAM BUSINESS NEWS JUNE 1
BUSINESSicon  01/06/2021 

Shares gain on buoyant banking stocks

Market will continue to breach new highs, but investors should be more cautious: experts
Market will continue to breach new highs, but investors should be more cautious: experts
BUSINESSicon  31/05/2021 

The market witnessed strong buying interest last week and analysts from many securities firms expect indices to continue to hit new highs, but have warned investors to be cautious.

E-commerce changing domestic retail property market
E-commerce changing domestic retail property market
BUSINESSicon  31/05/2021 

The shift toward e-commerce due to the COVID-19 pandemic has brought challenges to Vietnam’s retail property market, according to Savills Vietnam.

Customs sector helps exporters utilise benefits of FTAs
Customs sector helps exporters utilise benefits of FTAs
BUSINESSicon  30/05/2021 

The customs sector will continue to introduce measures to help Vietnamese enterprises fully tap the benefits brought about by FTAs Vietnam has signed with foreign partners, an official from the General Department of Vietnam Customs has said.

 
 
 
Leave your comment on an article

OR QUICK LOGIN