Industrial real estate 'breaks the ice', dozens of hectares of transactions appear

According to the Vietnam Association of Realtors (VARS) report, industrial real estate continues to be a bright spot, with more industrial park investment projects being approved.

Interest from global manufacturers with large investment needs, especially the increasing trend of investment in specialized products such as pre-built warehouses, pre-built factories, logistics, data centers...

For example, Foxconn is promoting its strategy of diversifying its production chain in Bac Giang , signing a memorandum of understanding to study leasing 50.5 hectares of land in Quang Chau Industrial Park to expand its scale, with a total investment of about 300 million USD.

Matsuya R&D (Japan) invested an additional 6.7 million USD in a production line in Dong Nai Industrial Park. Giant Manufacturing (Taiwan) invested an additional 13 million USD in VSIP 2 Industrial Park, Binh Duong Province. Taihan Precision Technology invested 5.3 million USD in Cam Giang, Hai Duong.

A series of giants Boeing, Coca-Cola, Meta, SpaceX, Netflix, Apple... are looking for business and cooperation opportunities in Vietnam.

VARS said that the supply of industrial real estate, especially for leasing large areas, is still limited.

Industrial real estate potential assessment. (Photo: Hoang Ha)

Ms. Thanh Pham, Associate Director, Research and Consulting, CBRE Vietnam, said that as some locations in industrial parks in the secondary market offer preferential policies on income tax exemptions and reductions, and land rent exemptions, manufacturing companies in these areas can enjoy more favorable conditions. This area has begun to attract large manufacturers as well as ready-built factory operators to set up their factories.

"In the period from 2022 to the second quarter of 2023, CBRE recorded large-scale transactions with a scale of 10 hectares or more in northern provinces such as Bac Giang, Thai Binh , Quang Ninh, mainly in the fields of electronics and automobile industry," she said.

Meanwhile, Ba Ria - Vung Tau is the most vibrant secondary market in the Southern region with large investment sources from the US, China, and Japan.

Data from VARS shows that the average rental price is 100 - 120 USD/m2/rental cycle and will continue to increase, especially in the Southern level 1 industrial park market.

Ho Chi Minh City market recorded the highest average rental price, ranging from 180-300 USD/m2. Next is Long An with an average rental price ranging from 125-275 USD/m2.

Rental prices in Binh Duong range from 100-250 USD/m2 and in Dong Nai from 100-200 USD/m2. This price is calculated for each rental period.

In industrial parks in the North, rental prices range from 90 - 120 USD/m2/rental period.

'Cleaning the nest for eagles' in the US, Japan, and Korea: Vietnamese businesses expect to make a lot of money . Many Vietnamese businesses continue to focus on large real estate projects, including land segments for production activities, serving domestic investors as well as large foreign corporations.

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