Industrial real estate continues to be a bright spot, forecast to boom in 2025
On September 19, 2024, VNIC - Vietnam Investment Consulting successfully organized the event "National Industrial Real Estate Forum 2024" with the theme "Capturing trends, leading the market".
At the forum, experts at the event commented that in reality, the Vietnamese industrial real estate market in 2024 is showing signs of slowing down, but is expected to explode again in 2025.
Overview of the event "National Industrial Real Estate Forum"
At the "National Industrial Real Estate Forum 2024", VNIC reported that the Vietnamese industrial real estate market in the third quarter of 2024 showed signs of slowing down compared to previous years.
The event was attended by leading experts in the industry, more than 300 infrastructure investors and domestic and foreign consulting firms, along with more than 50 FDI enterprises that have and are planning to invest in Vietnam. In particular, this event had the participation of LOGOS, one of the experienced investors in the field of infrastructure development, with many large projects worldwide. The event was attended by Mr. Trent Iliffe - founder of LOGOS, Mr. Glenn Hughes - Managing Director of LOGOS in Vietnam, and other important representatives of LOGOS.
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At the same time, the event also had the participation of other typical units such as: representatives of the infrastructure investors of Amber Industrial and Gilimex Industrial; construction contractor Andes E&C; Joint Stock Commercial Bank for Investment and Development - BIDV, HPS Logistic, Jiaxin Industrial Vietnam, ... All gathered to discuss and share multi-dimensional perspectives on the Vietnamese industrial real estate market in 2024.
With the theme “Capturing trends, leading the market”, the event provided a valuable opportunity to update the latest information and trends of the industrial real estate market. The forum has become a meeting place for leading experts in the industry, where they share valuable information and practical experience in investing in industrial real estate.
Industrial real estate situation 2024
According to VNIC's report, the situation of Vietnam's industrial real estate in 2024 shows positive figures. As of August 2024, Vietnam has an additional 4,750 hectares of industrial land, an increase of 5% over the same period in 2023. The average occupancy rate in industrial parks is up to 75% (an increase of 2.6% over the same period). After the surge of investment in the period of 2019-2023, the average land rental price has increased sharply over the years, specifically, by 2024, the average land rental price is up to 156 USD/m2 (an increase of 6% over the same period).
Meanwhile, the industrial warehouse market also shows positive signs with an average occupancy rate nationwide of up to 77% (up 4% over the same period in 2023). The average rental price continues to show signs of increasing steadily over the years. In 2021, the average warehouse rental price fluctuated at 4.3 USD/m2/month, by 2024 the average rental price increased to 4.6% USD/m2/month. In particular, many localities recorded high prices such as 6.5 USD/m2/month in Hanoi, Ho Chi Minh City with an average rental price of 5.5 - 6.5 USD/m2/month, competitive localities such as Bac Ninh, Long An recorded prices of 5.6 USD/m2/month and 4.8 - 6.2 USD/m2/month respectively.
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Mr. Do Hong Quan - General Director of VNIC said: "In 2024, Vietnam's industrial real estate market still shows optimistic signals, but in reality, the investment wave is showing signs of slowing down. This can be partly explained by the impact of instability in the world economy and politics".
In addition, Mr. Niu Qiang - General Director of China Chuhai Group also reaffirmed this issue. He said that Chinese enterprises are waiting for clear signals from the world political situation. Although enterprises plan to "sit still" at this time, it is expected that in the second half of 2024 and 2025, the wave of production shifting from China to foreign countries will explode again. For a country with so many advantages to attract investment like Vietnam, Vietnam will still be a bright name on the investment map.
Forecast of industrial real estate situation 2025
It is expected that 2025 will be a boom year for the industrial real estate market. To meet customer demand, in the period of 2024-2027, Vietnam is expected to have about 15,200 hectares of industrial land supply, more than 6,000,000 m2 of total warehouse supply.
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| The signing ceremony marks the long-term strategic cooperation between LOGOS and VNIC |
Mr. Glenn Hughes - CEO of LOGOS in Vietnam also affirmed that, as an infrastructure investor in Vietnam, LOGOS will strive to bring the best quality warehouse products to customers. LOGOS projects are all located in strategic locations, convenient for traffic and freight transport. At the same time, LOGOS incorporates ESG into the construction and development of infrastructure, ensuring to bring customers comprehensive experiences, improve quality and increase customer experience.
The “National Industrial Real Estate Forum 2024” clearly reflected the strong growth of this market, with the rapid expansion of industrial parks and key infrastructure projects. The figures and reports at the forum affirmed the important role of industrial real estate in attracting foreign direct investment (FDI) and promoting domestic production.
In the coming years, this market is expected to continue to grow strongly, especially in the context of Vietnam increasingly becoming an important link in the global supply chain.
The event ended with a signing ceremony marking the strategic cooperation between VNIC – Vietnam Investment Consulting and LOGOS, aiming to promote the field of investment consulting and leasing of industrial real estate in Vietnam. This cooperation not only opens up many new development opportunities for both sides but also contributes significantly to promoting the investment environment, attracting domestic and foreign enterprises to the potential industrial real estate market of Vietnam. The combination of VNIC’s strengths and experience in the field of investment consulting with LOGOS’s market understanding and infrastructure development potential promises to bring comprehensive and effective solutions to partners and investors.
![[Photo] Prime Minister Pham Minh Chinh chairs Government Conference with localities on economic growth](https://vstatic.vietnam.vn/vietnam/resource/IMAGE/2025/2/21/f34583484f2643a2a2b72168a0d64baa)
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