The Hanoitimes - The industrial parks are available in every part of Vietnam, mainly Ho Chi Minh City, Hanoi, Binh Duong, Hai Phong, Quang Ngai, and Dong Nai.
Industrial real estate will continue its growing trend in 2018 thanks to rising demand from foreign-invested enterprises (FIEs), according to Savills Vietnam.
The establishment of industrial parks have led to the growth of logistics and industrial real estate that are driven by the performances of both domestic and foreign firms, mainly multinational corporations.
Industrial property highlighted
Demand for industrial property is on the rise following the growth of foreign direct investment (FDI) which hit US$34.5 billion in 2018.
Accordingly, more firms seek for establishments that range from 500 sq.m to 50,000 sq.m including build-to-suit to optimize their facilities and save cost, Savills Vietnam said.
Meanwhile, the Vietnam National Real Estate Association (VNREA) attributed the growth of industrial property to increasing money inflows, including remittance. Investors prefer real estate to other investment channels namely securities, gold, foreign currencies, and deposits, it said.
Industrial parks in Vietnam have covered an area of more than 80,000 hectares of land with the operations of hundreds thousands of companies, mostly FIEs.
Jones Lang LaSalle Vietnam (JLL Vietnam) said that real estate sector is prospective thanks to low production cost which is below US$1/hour, lowest in Southeast Asia in the context that multinational companies are shifting their locations to Vietnam from China due to high input cost.
Earlier this month, CBRE Vietnam has said that the growth of automobile sector in Vietnam over the past years has left positive impacts on the industrial real estate market with anticipated demand for lease extensions in future periods.
It said that the assembling cluster is mainly located in the North with a network of foreign original equipment manufacturers (OEMs) and auto part manufacturing facilities.