Vietnam's industrial real estate still a fertile field: experts

A significant number of industrial parks were approved for investment in the first two months of this year across the provinces of Bac Giang, Binh Phuoc, Thai Nguyen, Ba Ria - Vung Tau, and Binh Phuoc.

Experts believe that Vietnam's industrial real estate market is experiencing strong growth, becoming a bright spot in the national economic picture.

Mr. Tran Quang Trung, Business Development Director at OneHousing, noted that as Vietnam attracts foreign direct investment (FDI) in terms of scale and quality, many large corporations are investing in Vietnam. The investment of a single large corporation often leads to the establishment of numerous "satellite" companies that support these corporations.

According to the OneHousing representative, with the Government's target of increasing per capita income by 2025 and a roadmap extending to 2030, industrial real estate is a very promising segment, alongside commercial and residential real estate.

Meanwhile, Mr. Thomas Rooney, Associate Director of Industrial Consulting at Savills Hanoi, stated Lthat the industrial real estate segment in Vietnam has been recording strong growth. The absorption rate for both industrial land and ready-built factories and warehouses has increased significantly. The land absorption rate in the North is now competing more closely with the South, with a large amount of land already filled. Notably, many ready-built factories and warehouses have been leased by manufacturers from Taiwan (China), mainland China, Europe, and the US.

Ms. Nguyen Hoai An from CBRE forecasted  that industrial land lease prices will increase by 4-8% per year in the North and 3-7% per year in the South over the next three years.

Regarding the outlook of the industrial real estate market, Ms. Pham Thi Mien from the Vietnam Association of Real Estate Brokers, commented that the supply of industrial land in 2025 will grow and improve in quality thanks to new industrial parks and expansion projects in existing projects.

In the period of 2024-2027, Vietnam is expected to have approximately 15,200 ha of industrial land supply and over 6,000,000 sq.m of total warehouse and factory supply.