Việt Nam has enjoyed growing foreign investment this year amid a stable economic environment, according to Savills’ Asia Pacific Investment Quarterly report for the third quarter of the year.
Việt Nam is described as an ideal location for industrial real estate investment with its economic and demographic factors, and analysts predict it will emerge as a regional leader in this segment.
Industrial land lease prices are forecast to increase by 5-9 per cent annually in the northern region, and 3-7 per cent in the south thanks to the rising demand from industrial groups, said property consultancy CBRE Vietnam.
The industrial real estate segment is expected to remain a "shining light" in terms of investment volumes, development of quality ready-built facilities and strong price performance, according to property consultancy Knight Frank Vietnam.
New supply in the industrial real estate market in HCM City and neighboring provinces has been slow amid an increase in demand from manufacturing industries during the peak year-end buying season before Tết (Lunar New Year).
The quest for land lots was more arduous in the South as most of the lots in industrial parks had been occupied. Notably, the industrial parks in Binh Duong and Dong Nai Provinces had reached 95 per cent in occupancy...
This upswing is largely attributed to an ongoing production shift and China-plus One strategy of manufacturers. The rental prices of industrial park lands in tier-1 markets are expected to rise by 5-10 per cent, fueled by robust demand.
Viglacera Corporation JSC, a leading real estate and building materials group in Viet Nam, said it has been named in the top 10 best industrial real estate developers in 2022.
The industrial real estate sector will likely continue to pick up in the remaining months of the year thanks to the ongoing global supply chain disruption and diversification, and the trade deals that Viet Nam has signed, experts said.