return icon Vietnamnet.vn

Demand for ready-built factories and warehouses increasing: CBRE

The development of e-commerce together with delays to import and export activities due to disrupted logistics services has accelerated demand for ready-built factories and warehouses during the COVID-19 outbreak in Viet Nam.

 

 

Kim Dong Industrial Zone in the northern province of Hung Yen. The number of leasing enquiries of other industrial properties dropped due to the travel ban and social distancing. 

 

 

In contrast, the number of leasing inquiries for other industrial properties has fallen due to travel bans and social distancing.

“After the pandemic is contained, the average asking rent for warehouses will increase by 4-11 per cent y-o-y,” Pham Ngoc Thien Thanh, associate director at CBRE Research & Consulting, said at an online conference on ready-built factory development on Thursday in HCM City.

Over the last two years, Viet Nam's ready-built factory and warehouse market had grown with strong supply and stable performance, according to CBRE Viet Nam Ltd, Co.

“It is expected that by the end of 2020, the total supply of ready-built factory and warehouses in the North will reach 2 million sq.m, up 25.3 per cent y-o-y. Ready-built factories in the South will reach 2.7 million sq.m, up 28.2 per cent y-o-y,” Thanh said.

“Viet Nam's ready-built factory and warehouse market is expected to continue to gather momentum in the coming years. Demand for warehouses has been mainly driven by e-commerce companies who are expanding their storage space and distribution networks,” said Le Trong Hieu, director of CBRE Industrial Leasing Services. “In addition, more investors/developers are actively seeking sites to develop logistics facilities.”

Niche industrial and logistic assets will also benefit in the long term, with growing consumption and distribution of groceries and fresh foods set to accelerate occupier demand for temperature-controlled storage (cold or cool storage warehouses), according to Hieu.

In the context of limited industrial land supply, high-rise warehouses had been introduced to create bigger storage space for the needs of e-commerce companies.

The pandemic had added impetus on manufacturers and governments to plan to reduce supply chain dependency on China (and potentially any other single market). This would form part of the overarching theme of a move away from centralised supply and towards greater diversification – a trend likely to benefit Vietnam, according to CBRE Viet Nam.

During this difficult period, developers of industrial parks and ready-built factories have offered support policies, including reductions of rents and infrastructure maintenance fees (from 10 per cent to 30 per cent), restructuring payment terms and exempting rent for new businesses setting up factories during the outbreak.

It is time for a critical makeover of Viet Nam's industrial property market. Ready-built warehouses and factories are evolving quickly to take advantage of this golden opportunity. Robust demand for ready-built factories include new factory set-ups and expansion. More recently, developers have been constructing ready-built factories and warehouses to maximise the efficiency of land use and cater to the full spectrum of demand.

The modern generation of ready-built factories, so-called "Ready-built factory 4.0", integrated 4.0 technologies to bring more convenience to occupiers in the process of leasing, manufacturing and operating, and was emerging as a new trend, according to CBRE Viet Nam. Ready-built factories 4.0 apply virtual reality technology to bring factory spaces to clients at any time and anywhere. —VNS

MORE NEWS

Vietnam proposes to issue ID cards to people without Vietnamese nationality

Non-Vietnamese nationals living in Vietnam will likely be granted an electronic identification account to perform public administrative procedures.

VN, Hungary’s parliaments sign new cooperation agreement

A new cooperation agreement between Vietnam and Hungary’s national assemblies was assigned by National Assembly (NA) Chairman Vuong Dinh Hue and his Hungarian counterpart László Kövér in Budapest on Monday.

Australia pledges to continue fostering strategic partnership with Vietnam

Australian Foreign Minister Penny Wong has affirmed that her nation always attaches importance to Vietnam's role in the region, and pledges to continue strengthening its strategic partnership with the Southeast Asian nation.

Ben Tre coconut-based dishes set World Record

The World Records Union (WorldKings) and the Vietnam Records Organisation (Vietkings) on June 27 recognised the 222 coconut-based dishes cooked at an event held in the Mekong Delta province of Ben Tre.

Health Ministry yet to consider COVID-19 endemic disease

The Ministry of Health has proposed considering COVID-19 a Group A infectious disease, not an endemic disease in its latest draft on COVID-19 prevention and control measures in the new situation.

E-commerce enabler OnPoint raises $50 million from Singapore fund

OnPoint has successfully raised $50 million in a series B fund-raising round from SeaTown Private Capital Master Fund managed by SeaTown Holdings International, an indirect wholly-owned subsidiary of Singapore’s Temasek Holdings.

SARS-CoV-2 Omicron sub-lineage BA.5 enters Vietnam

The SARS-CoV-2 Omicron sub-lineage BA.5 has entered Vietnam and may overwhelm the old sub-lineage BA.2 which is dominant in the country, according to Prof. Dr. Phan Trong Lan, Director of the Health Ministry’s Department of Preventive Medicine.

HCM City promises to ease problems faced by Korean investors

The chairman of the Korean Chamber of Commerce and Industry in Vietnam, Shon Young Il, has called on HCM City authorities to help Korean firms resolve difficulties they face in investing and operating in the city.

VIETNAM NEWS HEADLINES JUNE 27

Newly-appeared low pressure zone in East Sea may develop into storm

VIETNAM BUSINESS NEWS JUNE 27

Vietnam’s exports to Hungary on the rise

Football star to join France's Pau FC

Vietnam’s football star Nguyen Quang Hai will play for Pau FC in Ligue 2, France’s second division.

Multiple int’l air routes to Danang to be reopened by year-end

Multiple international air routes linking Danang City and regional destinations will be reopened from now until the end of 2022, giving an impetus to tourism growth in the city.

One of a kind: banana species needs boiling, non-sour citrus fruit sells out

While regular bananas need time to become ripe, a particular type in Vietnam requires boiling or grilling to reach its maximum taste. In Vietnam, there is also a unique citrus fruit, not sour but sweet.

VN animation project depicts traditional culture

A short film depicting Vietnamese traditional culture, U Linh Tích Ký: Bột Thần Kỳ (Linh: Magic Powder), has attracted viewers on YouTube.

NBA gets first Vietnamese-origin players

The National Basketball Association (NBA)'s Oklahoma Thunder selected Jaylin Williams, a 2.08-metre power forward from the University of Arkansas in the fourth pick of the second round of the draft on Friday (June 24).
back_to_top