As of early 2020, Vietnam had 335 industrial zones, of which 260 were operational with an occupancy rate of 75.7 percent.
While many IZs are left idle or have low occupancy rates, others are very selective in accepting tenants because they are located in advantageous positions and are well organized.
Developing IZs is seen as a profitable business at this time as many foreign investors are leaving China and heading for Vietnam.
Industrial infrastructure companies are still thriving amid Covid-19, and are expected to continue to grow as Vietnam is one of the best destinations for investors in the post-epidemic period.
Following the prediction about a new strong FDI wave, real estate shares have been sought by investors.
Industrial real estate is believed to be the only segment which can continue to prosper in the current real estate market.
Legal bottlenecks have affected the real estate market since the beginning of the year.
Vietnam has the opportunity to become a new production base for the world amid the US-China trade war.
The rent in industrial zones (IZ) has increased rapidly. Some provinces in the eastern part of the south have no more land to lease, while investments in the processing and manufacturing industry continue to rise.
Vietnam is an ideal destination for foreign investors, including Chinese, despite China’s efforts to prevent capital flowing out of the country.
Some large corporations with plentiful capital have decided to pour money into industrial real estate as they can see opportunity in the sector.
Despite relatively high leasing fees, ready-made workshops are still being chosen by foreign investors, especially those from Japan and South Korea.