return icon Vietnamnet.vn

Experts: industrial real estate faring well in 2020

Foreign investors are planning to expand their operations in Vietnam this year, creating an opportunity for industrial property development despite the COVID-19 pandemic, according to experts.

experts industrial real estate faring well in 2020

Demand for industrial property rises in the Q1 

 

 

The dautubds.baodautu.vn website quoted Trang Bui, National Head of Commercial Leasing at JLL Vietnam, as saying that Vietnam remains a promising destination, particularly now that many enterprises have moved their production out of China.

With developed infrastructure, the industrial real estate market in the north has become attractive to major manufacturers who want to diversify their production lines beside their existing establishments in China.

Alberto Vettoretti from Dezan Shira & Associates said COVID-19 and the US-China trade war will accelerate the move and expansion from China to Vietnam thanks to Vietnam’s remarkably improved supply chain.

John Campbell from Savills Vietnam expressed his belief that foreign investment in the industrial real estate market will continue to thrive thanks to the EU-Vietnam Free Trade Agreement (EVFTA).

According to JLL Vietnam, despite stagnation in transaction procedures, COVID-19 has had little impact on the industrial real estate market in the north, and the segment saw increasing demand in the first quarter of 2020.

Bac Ninh province and the port city of Hai Phong, with large supplies, remain the driving force of the market in the north.

Despite COVID-19, investors in industrial infrastructure have raised their prices with the hope of long-term investment.

The average price in the first quarter of this year hit 99 USD per square metre per lease term, up 6.5 percent from the same period last year. The price of industrial zones with surrounding walls – a favourite choice among small- and medium-sized enterprises – was at 4-5 USD per square metre per month, and the occupation rate reached 100 percent.

Meanwhile, the industrial real estate market in the south saw a slight decrease.

According to Le Anh Hieu, Marketing Director of Long Hau JSC, due to global travel restriction amid COVID-19, the number of investors who visited and explored industrial parks had dropped, and many investors are hesitant to make decisions during this sensitive period.

According to the Economic Zones Management Department under the Ministry of Planning and Investment, as of the end of March this year, Vietnam had 335 industrial parks with a combined coverage of 97,800 hectares. Of which, 66,100 hectares include infrastructure. As many as 260 industrial parks have been put into operation, accounting for 75.5 percent. The rest, sitting on 29,200 hectares, are under construction. VNA

VN real estate investors struggle to find suitable investment channels

VN real estate investors struggle to find suitable investment channels

Investors are struggling to find real estate products as the supply is decreasing and other investment channels are no longer attractive.

COVID-19: many real estate trading floors close

COVID-19: many real estate trading floors close

The transaction volume on the domestic real estate market dropped to a four-year low for Q1 due to the impacts of the COVID-19 pandemic, and many real estate trading floors have temporarily closed.

MORE NEWS

Japanese travelers love to visit Da Nang, experience Vietnamese culture

Yoshinori Yakabe, Japanese Consulate General in Da Nang, said Japanese travelers love to experience ecological tours and learn about culture when they come to Vietnam.

After 7 years of study, young doctors earn less than VND5 million a month

Citing low income as one of the reasons behind the brain drain from the public to the private sector, the Ministry of Health (MOH) believes this is causing problems in the health sector.

VIETNAM BUSINESS NEWS MARCH 29/2023

Foreign investment from ASEAN important to Vietnam: HSBC

Defence Minister meets with RoK Prime Minister in Seoul

Prime Minister of the Republic of Korea (RoK) Han Duck-soo hosted a reception in Seoul on March 29 for Vietnamese Minister of National Defence Gen. Phan Van Giang.

Ninth National External Information Service Awards launched

The ninth National External Information Service Awards was launched in Hanoi on March 29.

Vietnam draws over 2.69 million foreign tourists in Q1

Vietnam welcomed more than 2.69 million foreign tourist arrivals in the first quarter of 2023, 29.7 times higher than that of the same period last year, the General Statistics Office (GSO) has reported.

Doha Cup 2023: Vietnam's U23 football team return home with "empty hand"

Vietnam’s U23 team left Doha Cup 2023 with an "empty hand" after a close loss to their Kyrgyz rivals on March 29 (Vietnam time).

VIETNAM NEWS HEADLINES MARCH 29/2023

Government issues details on aid for ethnic minority housing, land reclamation

GDP growth of 3.32% in Q1 nears lowest level in 13 years

Vietnam’s gross domestic product (GDP) grew by 3.32% in the first quarter of the year, higher only than the growth rate of 3.21% recorded in the first quarter of 2020 in the 2011 to 2023 period, according to the General Statistics Office.

Four Japanese banks to provide US$300 million for Vietnamese renewable energy

Four Japanese banks are set to co-finance a total of US$300 million to provide credit lines to power producers using renewable energy in the nation as part of efforts to help the growing country in its decarbonising process.

15 short stories by Vietnamese writer published in RoK

A collection of 15 short stories written by local author Nguyen Huy Thiep were introduced to Korean readers by Wisdom Publishing House in March.

Hanoi’s ancient pagoda in the red-silk cotton tree season

In March, red-silk cotton trees bloom, showing off their beauty at the thousand-year-old Thay Pagoda in Quoc Oai district in Hanoi.

VN Government calls for broad-based measures to help realty sector

The Vietnamese Government has recently urged ministries to take measures to help the realty sector get back on track and sustain its healthy growth.

EC drops health certificates requirement for Vietnamese noodles

The European Commission (EC) has recommended removing Vietnamese rice noodle and vermicelli brands from conditions that require health certificates and 20 per cent random testing at the port of entry.

Ministry of Industry and Trade proposes draft on cross-border trade

The Ministry of Industry and Trade (MOIT) is seeking public comments on a legal draft amending Decree No14 on cross-border commercial activities.
back_to_top