Hotline: 0906 779982Tiếng Việt

Industrial real estate "boomed"

COVID-19 is gradually changing the market, stimulating the e-commerce boom, creating a big boost for logistics real estate, warehouses, then creating conditions for industrial real estate in Vietnam to flourish, develop in a positive direction and have a new breakthrough from the end of 2020.

CATCHING THE INVESTMENT WAVE

Real estate experts evaluate industrial real estate as a new field of investment to take advantage of market opportunities and expand investment portfolios. It is forecasted that from the end of 2020, many foreign investors will tend to move capital flows into Vietnam's industrial real estate through M&A projects or apply for investment in industrial parks and industrial clusters. This trend has taken place since Vietnam has succeeded in controlling the COVID-19 epidemic, creating a huge advantage, contributing to building and strengthening confidence among foreign investors.

Mr. Le Trong Hieu, Director of Business Consulting Division of Office and Industrial Real Estate Company CBRE Vietnam, commented: “From the end of 2020 onwards, tenants of land in industrial zones tend to expand production by seeking to lease land in emerging areas. Currently, foreign investors and developers in logistics and warehouses will enter the Vietnamese market, so the demand for industrial real estate is also growing”.

Many tycoons who have never participated in the industrial real estate segment have decided to step into this field. Mr. Phan Tan Dat, Chairman and General Director of DRH Holdings Joint Stock Company, said: “The next development direction of the Company is to invest more in industrial real estate in the form of joint ventures and associates or buy shares of some businesses specializing in this segment”.

Many investors noted that Vietnam has a consistent policy in dealing with foreign investment flow, always considering foreign investment as an important component of the economy for development. All these are contributing to create a golden opportunity for Vietnam in the context of a broken global supply chain and a decline in foreign investment flow.

The result of attracting foreign investment can be mentioned is Binh Duong - one of 14 provinces and cities achieving outstanding results in attracting FDI. With an investment of nearly USD 98 million for the rental project of offices, factories, warehouses and warehouse services in Bau Bang district (Binh Duong province) in October 2020, BW Industrial Development Joint Stock Company ( BW) - a joint venture between private investment fund Warburg Pincus (US) and Becamex IDC Group - is one of the "foreign" investors pouring the most capital into the real estate market in the first 11 months of 2020.

GENERATION OF INDUSTRIAL FACTORIES 4.0 TO THE THRONE

Industrial real estate is an inevitable trend, suitable for an export-oriented economy like Vietnam. Most investors with long-term vision want to aim for this type. And if the industrial urban area project can be developed, it will surely increase its attractiveness to tenants who are foreign investors.

COVID-19, made the "generation of industrial factories 4.0" boom strongly. Generation of factories 4.0 applying virtual reality technology to bring factory space to customers anytime, anywhere. The service package includes free legal, human resources and accounting to help customers apply for a license even while abroad.

During the COVID-19 epidemic outbreak, the demand for ready-built warehouses increased dramatically while the number of inquiries for other industrial properties declined due to travel restrictions and social distancing. Factory and ready-built warehouse markets are showing good performance. Prefabricated factory rents remained stable even during the COVID-19 outbreak. The supply of ready-built factories continues to grow steadily in both industrial areas in the South and the North.

The integration of logistics operations into supply chain modernization is improving operational efficiency and reducing overall logistics costs for tenants. Growth in other industries will also support the expansion of the trilateral logistics market, including growth in the food and beverage, healthcare and pharmaceutical industries, as well as the office equipment and technology industries.

STRONG TRANSFORMATION FROM END OF 2020

In recent years, the Government has implemented policy to attract foreign direct investment through incentives on: Preferential corporate income tax; Import and export tax incentives; Incentives on finance - land. This, in part, creates a driving force to attract foreign investors to build and develop factories in Vietnam, promote economic growth, create jobs as well as budget revenues.

The ready-built factory and warehouse market is expected to grow stronger thanks to new changes in trend in both supply and demand. The need to expand storage space and distribution network of e-commerce companies is and will dominate the demand for warehouse rental. Along with that is the need to find land funds for logistics facilities to increase.

Temperature-controlled storage spaces (cold or cool storage) will be seen as new developments in the logistics industry as the fresh food distribution and sales network expands significantly online and directly at existing stores and supermarkets. In regions with a limited supply of industrial land, high- rise storage models have also begun to appear to create larger storage space for the needs of e-commerce companies.

Vietnam's industrial real estate market is showing a strong transformation in anticipation of new demand trends. Particularly for the factory and logistics market, logistics,... new developments in ready-built industrial real estate are happening extremely quickly to take advantage of the golden opportunities that are approaching the whole market of industrial real estate in Vietnam. In response to rental requirements in that new context, industrial property developers are making changes in product development to accommodate.

Government acts, always in companion with enterprises!

Time 14/03/2021 at 22:44

The COVID-19 pandemic appeared and became increasingly complicated, heavily affecting all countries worldwide, including Vietnam. Although the Government has taken measures to prevent and control in time the spread of the pandemic, and the current Vietnamese economy is quite stable with positive growth in 2020. However, the risk of instability is still lurking because the pandemic is always potentially a recurrence.

Overcoming difficulties to finish the task on schedule

Time 07/05/2020 at 08:44

“There is no story that the investor suspended construction of Trung Luong - My Thuan Expressway”. That was the affirmation of Mr. Ho Minh Hoang, Chairman of Trung Luong - My Thuan BOT Co. before the suspension of the Management Board.

Prepare for Supply chain shifts in the region

Time 26/06/2020 at 18:28

In early June 2020, Ambassador Kritenbrink, U.S. Embassy in Hanoi has launched a new Embassy Hanoi webinar series looking at how Vietnam can prepare for supply chain shifts in the region, how U.S. companies can support this, and how to increase U.S. investment in the sector.

IUV developing human resource of high quality for the northern central

Time 09/04/2021 at 09:33

The Industry University of Vinh (IUV) is aiming to the target of being a leading unit in training, contributing human resource of high quality to the labor market of Nghe An province in particular and to provinces and cities in the Northern in general. For recent years, it has been associated with large enterprises and reputable training institutions in the country and abroad. IUV identified it to be the new strategic direction to make a difference in training and creating employment outcomes for students in the future.

Yusen Logistics opens a new logistics center in Binh Duong

Time 06/04/2021 at 09:49

On 5th April 2021, Yusen Logistics (Vietnam) Co., Ltd. announced the grand opening of its new Yusen Tan Dong Hiep B Logistics Center in Di An City, Binh Duong Province in Vietnam.

Saigon Newport: OOCL's invaluable partner

Time 02/04/2021 at 09:00

On the morning of March 26th, 2021, Senior Captain Ngo Minh Thuan- President of Saigon Newport (SNP) and SNP’s officers hosted a meeting with Mr. James Chou - representatives of Orient Overseas Container Line Vietnam (OOCL Vietnam). During the meeting, OOCL Vietnam, on behalf of OOCL Headquarter, present SNP with the “Invaluable Partners” recognition award. This present is an appreciation of the shipping line for the Corporation’s service quality, and values.