According to Mr. Patrick Liau, Senior Manager of CapitaLand Vietnam, in the industrial real estate segment, Vietnam needs to determine whether to become the manufacturing base of the world or to move to a higher angle to match the chain. supply.
Industrial land rental is at 300 USD / m2
In the context of the COVID-19 translation, the industrial park market is the only sector that has witnessed positive growth in both rental and occupancy rates. Mr. Le Trong Hieu, Director of Office Business Consulting Division and industrial real estate CBRE Vietnam, said at the real estate market press conference in quarter IV / 2020.
Mr. Hieu said that in the fourth quarter of 2020, the average occupancy rate in industrial zones has been in place since 2019 in 5 main provinces and industrial cities in the North (Hanoi, Bac Ninh, Hung Yen, Hai). Duong and Hai Phong) reached 89.7%.
Similarly, the occupancy rate in the four major industrial cities and provinces in the South is also high at 87%.
Rents in some industrial zones in Hai Phong, Bac Ninh and Hai Duong in the North and Ho Chi Minh City, Dong Nai and Long An in the South increased 20-30% over the same period in 2019.
Specifically, in Ho Chi Minh City, the highest rents reached 300 USD / m2 in the fourth quarter. This figure in Hanoi is 260 USD / m2 and Long An is 200 USD / m2.
CBRE also noted a significant increase in the need to find land funds to develop logistics infrastructure. The strong growth of e-commerce and logistics companies since the outbreak of COVID-19 has fueled demand for storage space and distribution facilities.
In prime locations where the supply of industrial land is limited, high-rise warehouses will begin to appear to create larger storage space to meet the needs of e-commerce companies, especially to do last mile delivery location.
For the ready-built warehouses and workshops, this activity will remain stable year-on-year due to the large supply from 2019 to 2020.
In 2020, despite COVID-19, international warehouse giants such as GLP, LOGOS and JD Logistics have invested in both the North and the South. Vingroup also entered the market with two new industrial parks, scheduled to launch in 2021.
Supply in the North market will be increasingly limited
Talking about the year 2021, many experts predict this will be an optimistic year for the industrial real estate market.
Mr. Glenn Hughes, Director of LOGOS Property Vietnam assessed that, not only LOGOS, but also foreign investors, Vietnam is now one of the top destinations.
“If we continue to control the epidemic effectively, Vietnam’s industrial real estate will absolutely have a foothold in the international market this year,” said Mr. Glenn.
According to Mr. Le Trong Hieu, in the Northern market, the supply of industrial land will be less in 2021 and subsequent years. In contrast, the southern market will welcome many new supply in 2021 and 2022, leading to an increase in rental rates.
However, Mr. Hieu added, Vietnam is having to compete with some other countries in Southeast Asia. Thailand, Malaysia, Indonesia or Myanmar are absolutely potential investment attractions.
Mr. Troy Griffiths, Deputy General Director of Savills Vietnam, said that the interest trend of many foreign investment units is gradually shifting to provinces and cities that are not rich in developing areas. industry, typically Tay Ninh, Vinh Long, …
Need to reposition the value
Mr. Patrick Liau, Senior Manager of CapitaLand Vietnam. According to Patrick Liau, Senior Manager of CapitaLand Vietnam, in fact, even before the outbreak of COVID-19, Vietnam’s industrial real estate has gained a certain position. in the market, is a destination to attract investment for a long time.
Along with good pandemic control and reasonable incentive policies, Vietnam has received more and more confidence from foreign investors.
With an increasingly strong investment trend, Patrick said that Vietnam needs to focus on infrastructure development, which is paramount.
In addition, Vietnam needs to reposition the value of the industrial real estate industry.
“Vietnam does not have as many human resources as China, so we need to consider our value in the supply chain, we need to position whether Vietnam wants to become a manufacturing base of the world or progress. to a higher angle, “said Patrick.