Industrial real estate thrives on FDI increase

Existing factors in the market, especially strong FDI inflow, all are supporting the prosperity of the industrial real estate market.

According to JLL Vietnam, five leading industrial real estate markets in the southern region all had high occupancy rates, 81 percent on average in the second quarter of the year. HCM City, Binh Duong and Dong Nai were the three biggest markets.

Industrial real estate thrives on FDI increase



In Q2, 25,060 hectares of land in the south were leased, or 2.5 times higher than in the north.

A report of the Ministry of Planning and Investment shows that in H1, the FDI capital in industrial zones and economic zones reached $8.7 billion, while the demand for industrial real estate surged significantly as a result of the US-China trade war.

According to VinaCapital, many manufacturers and service providers have been relocating factories to Vietnam. Hanwha (South Korea), Yokowo (Japan) and Huafu (China) have left China for Vietnam. Goertek (Hong Kong) and TCL (China) are moving.

A report of the Ministry of Planning and Investment shows that in H1, the FDI capital in industrial zones and economic zones reached $8.7 billion, while the demand for industrial real estate surged significantly as a result of the US-China trade war.

Meanwhile, Foxconn (Taiwan), Lenovo (China), Nintendo, Sharp, Kyocera and Asics (Japan) are considering moving.

 

Savills’ report says that Vietnam’s industrial real estate sector is thriving because of the impacts of FTAs. Of these, CPTPP, set up in January 2019 and Vietnam-EU (EVFTA), signed in June 2019, both have helped attract more investment thanks to m tariff cuts.

RCEP, the FTA between ASEAN countries and six countries in Asia Pacific, also promises to bring new opportunities to industrial real estate.

The FDI inflow into industrial zones is a major reason that stimulates demand. There are 8,900 projects with total registered capital of $186 billion in industrial zones and economic zones.

Beerco (Hong Kong) invested $3.9 billion in Vietnam Beverage which has factory located in Tu Liem IZ in Hanoi. Goertek has set up a factory in Vo Que IZ in Bac Ninh province with the registered capital of $260 million.

Good macroeconomic indexes have also given a push to the industrial real estate sector. According to ADB, Vietnam is maintaining the highest economic growth rate in Southeast Asia, estimated at 6.8 percent in 2019.

According to the World Bank, Vietnam ranked 69th out of 190 easy-to-operate economies. Meanwhile, according to Trading Economics, wages in Vietnam are still cheaper than Malaysia, China, and Thailand, with $237 USD/month (VND5.5 million, 2018).

Vietnam now has 326 IZ with total area of 95,000 hectares. Of these, 251 IZs are operational with an occupancy rate of 74 percent, while 75 IZs are under construction.

According to John Campbell from Savills Vietnam, once the 75 IZs are put into operation, and investors pay higher attention to the provinces in the central region and try to shift agricultural land into industrial land, the supply in the industrial real estate market will expand.

Kim Chi 

EVFTA gives Vietnam’s industrial real estate market a lift

EVFTA gives Vietnam’s industrial real estate market a lift

The EU-Viet Nam Free Trade Agreement (EVFTA) will have a positive impact on Viet Nam's real estate market, especially the industrial real estate, experts said.  

Industrial real estate in Hai Phong setting new standards

Industrial real estate in Hai Phong setting new standards

The time when IPs could attract investors with infrastructure and incentives is over, as now IPs need to be designed and operated according to new standards.

 
 

Other News

.
Japan's economy shrinks at fastest rate since 2014
Japan's economy shrinks at fastest rate since 2014
BUSINESSicon  17/02/2020 

The world's third largest economy was hit by a sales tax rise, a destructive typhoon and weak global demand.

VN firms seek new raw material sources
VN firms seek new raw material sources
BUSINESSicon  17/02/2020 

Vietnamese companies, many of whom are facing a shortage of feedstock and raw materials as a result of the new coronavirus (COVID-19) outbreak in China, have started looking at alternative sources.

Coronavirus causes transport companies losses
Coronavirus causes transport companies losses
BUSINESSicon  17/02/2020 

Transport companies have been hit hard by the novel coronavirus (COVID-19).

Vietnam needs to find new rice markets to replace China: experts
Vietnam needs to find new rice markets to replace China: experts
BUSINESSicon  17/02/2020 

Since the novel coronavirus (Covid-2019) epidemic will surely affect exports to China, diversifying markets is an urgent requirement for Vietnamese rice exporters, experts have said.

Citibank and INGbank to provide credit to Nhon Trach power projects
Citibank and INGbank to provide credit to Nhon Trach power projects
BUSINESSicon  17/02/2020 

Citibank and INGbank will be in charge of arranging capital for the Nhon Trach 3 and 4 thermal power plants, according to a recent agreement signed between PetroVietnam Power Corporation (PV Power) and the two foreign banks.

Trading remains quiet amid risk concerns
Trading remains quiet amid risk concerns
BUSINESSicon  17/02/2020 

Brokerage firms and market experts remain pessimistic about market trading this week as investors run out of supportive information while international stocks continue to be weighed down by the novel coronavirus (COVID-19).

New document released to regulate use of non-residential real estate
New document released to regulate use of non-residential real estate
BUSINESSicon  17/02/2020 

The Ministry of Natural Resources and Environment (MoNRE) has sent a document to local departments to regulate the use and certification of non-residential real estate projects.

EVFTA brings chances and challenges to local agricultural production
EVFTA brings chances and challenges to local agricultural production
BUSINESSicon  17/02/2020 

The new trade agreement between Viet Nam and the European Union opens many doors for agriculture, according to experts.

Vinatex to provide 6 million face masks in February amid COVID-19
Vinatex to provide 6 million face masks in February amid COVID-19
BUSINESSicon  17/02/2020 

The Vietnam National Textile and Garment Group (Vinatex) is exerting efforts to produce around 6 million antibacterial face masks in February to meet increasing demand amid the novel coronavirus disease (COVID-19) outbreak.

VN banks more open for EU investors under newly-approved trade pact
VN banks more open for EU investors under newly-approved trade pact
BUSINESSicon  17/02/2020 

Investors from the EU will have opportunities to own higher stakes in Vietnamese banks than those from other countries under Việt Nam’s commitments in the EU-Vietnam Free Trade Agreement (EVFTA).

COVID-19: Border localities asked to resume trade with China
COVID-19: Border localities asked to resume trade with China
BUSINESSicon  17/02/2020 

Minister of Industry and Trade Tran Tuan Anh has asked Lang Son and Quang Ninh to resume imports, exports and transport of goods through three sub-border gates in the two localities after a suspension due to the outbreak of COVID-19.

Economic bailout package proposed
Economic bailout package proposed
BUSINESSicon  17/02/2020 

A bailout expected to be implemented by the government will contribute to helping the economy out of difficulties.

Airport funding plans on the way
Airport funding plans on the way
BUSINESSicon  17/02/2020 

Domestic and international private investors are expected to have fresh opportunities to join the long-awaited Long Thanh International Airport project in the near future, with the form of investment to be decided next month.

BUSINESS NEWS HEADLINES TODAY
BUSINESS NEWS HEADLINES TODAY
BUSINESSicon  15/02/2020 

Coronavirus outbreak hits 322 enterprises

Pharma giants seek to cash in on local market potential
Pharma giants seek to cash in on local market potential
BUSINESSicon  16/02/2020 

While several sectors are being hit by the coronavirus outbreak, the pharmaceutical and healthcare industry is taking an advantage, with numerous expansion strategies among players being placed in the gun barrel.

Stocks seen struggling next week as virus worries remain
Stocks seen struggling next week as virus worries remain
BUSINESSicon  16/02/2020 

Local stocks are forecast to struggle in a narrow range next week as investors are still uncertain about the prospects of the market and especially businesses hit by the coronavirus outbreak.

Strict sanctions imposed on importers of autos with illegal maps
Strict sanctions imposed on importers of autos with illegal maps
BUSINESSicon  16/02/2020 

Enterprises that import automobiles equipped with navigation apps featuring maps that violate Vietnam’s sovereignty will have their import licenses suspended.

Vietnam’s economy to expand 6.25% if coronavirus outbreak ends in Q1
Vietnam’s economy to expand 6.25% if coronavirus outbreak ends in Q1
BUSINESSicon  15/02/2020 

Vietnam’s GDP growth is expected to reach 6.25% this year if the outbreak of Covid-19 is contained within the first quarter, according to the Ministry of Planning and Investment.

Apparel firms scramble to make mask production amid coronavirus spread
Apparel firms scramble to make mask production amid coronavirus spread
BUSINESSicon  16/02/2020 

Many textile and garment businesses are scrambling to make face masks given the coronavirus outbreak-triggered lack of surgical masks.

Vietnam’s estate companies seek investment opportunities in foreign markets
Vietnam’s estate companies seek investment opportunities in foreign markets
BUSINESSicon  15/02/2020 

More and more domestic real estate firms have begun to seek investment opportunities in global markets, according to Savills Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN