Real estate firms that develop Industrial Zones (IZs) that lease to foreign manufacturing enterprises with abundant capital and land are expected to prosper in the near future.

Localities are seeking further details on the Vietnamese government’s plans to establish and expand industrial clusters.

Industrial real estate has been a bright spot in the market thanks to a large amount of foreign investment inflows, great potential and high absorption capacity, according to experts.

While the real estate market remains quiet, the industrial real estate market segment has seen large-scale transactions (10 hectares or more), especially in northern provinces.

Although it was one of the rare segments to see positive growth in 2022, industrial real estate is forecast to suffer this year due to global macroeconomic uncertainties.

Many Vietnamese enterprises have poured money into industrial real estate thanks to the new foreign investment wave.

Experts believe that in 2023 real estate firms will have to restructure their products and focus on more reasonable prices after years of very high prices.

Industrial Zone (IZ) developers are pocketing big money as Vietnam is welcoming new foreign investors.

With many favorable conditions, industrial real estate in Vietnam is having growth potential.

Industrial real estate has shown positive signs after the country began reopening international air routes. However, higher leasing fees are a concern.

As of early 2020, Vietnam had 335 industrial zones, of which 260 were operational with an occupancy rate of 75.7 percent.

Tran Van Tung, a real estate broker, has not closed any sale over the last three months, but still has to pay for travel, phone calls and ads.

A number of investment projects worth billions of dollars have been registered, which shows continued growth of the economy and the industrial real estate sector.

The latest Covid-19 outbreak, which began in late April, has slowed down the industrial real estate market. There have been only small-scale projects and no large scale one announced.

Rising land rent and shortages in industrial zones (IZs) may cause multinationals, which are seeking land near Hanoi and HCMC City, to hesitate to come to Vietnam.

The real estate firm of Dang Thanh Tam has attracted $1.2 billion worth of investments into its IZs within a short time, projecting a profit increase of 6-7 times in 2021 amid continued foreign capital inflow.

Vietnam needs to create favorable conditions for ‘Viet dragons’ and ‘foreign eagles’ to join the "tango dance" that brings benefits to both sides, according to VIetnam Chamber of Commerce and Industry (VCCI) chair Vu Tien Loc.

While 2020 is believed to have changed the real estate industry, trends in the sector this year are forecast to sustain or be aligned with demand in the market.

The industrial market is the only real estate sector that has enjoyed positive progress in both rental rates and occupancy rates during the COVID-19 pandemic.