DNVN - Vietnam's industrial park real estate market is entering a period of strong development thanks to stable FDI capital flows, high land rental demand, increasing rental prices and the trend of global production shift...
Investment Highlights
According to the Real Estate Development Center under the Vietnam Real Estate Association, industrial parks (IPs) are an attractive segment in the context of many challenges in the residential real estate market. The occupancy rate in IPs in the North is 81-83%, and in the South it is up to 92%, ensuring a stable cash flow for investors.
Industrial park land rental prices continue to increase sharply, with an increase of 35% in the North and 67% in the South from 2020 to mid-2024. In 2024 alone, rental prices in the South will increase by an average of 10-18%, showing that demand is still very high despite difficulties in other real estate markets.
In the first 9 months of 2024, total registered FDI capital reached more than 24.78 billion USD, up 11.6% over the same period in 2023. FDI capital in the manufacturing sector also increased by 15.7% over the same period, reflecting the increasing demand for industrial park land to build factories.
Vietnam's industrial real estate market is assessed to have great potential for development.
According to the Real Estate Development Center, the wave of production shifting from China to Vietnam continues to be an important growth driver. After the US-China trade tensions and the COVID-19 pandemic, many multinational corporations have chosen Vietnam thanks to its favorable geographical location, abundant human resources and stable investment environment.
The government is boosting public investment with many key projects such as the North-South Expressway, Long Thanh Airport, and new industrial parks. In 2024, about VND422,000 billion in public investment capital, equivalent to 62.3% of the annual plan, is being disbursed to develop transport infrastructure.
Since the beginning of the year, 23 infrastructure projects have been put into operation, and 19 key projects have started construction. In addition, plans to develop national railways and connect inter-regional infrastructure continue to be announced to attract investment and increase the synchronization of the industrial park system.
Recommendations for investors
The period 2025-2030 is forecasted to be a boom period for industrial park real estate. Vietnam plans to add 15,200 hectares of industrial land and 6 million square meters of warehouses to meet investor demand.
New generation FDI capital flows into high technology, semiconductors, and green energy from partner countries such as the US, China, and the EU will increase significantly, promoting the development of specialized industrial parks according to international standards. However, the industry will also face competition from Indonesia, Thailand, and Malaysia with higher requirements on the environment and sustainable development.
Giving recommendations to investors, the Real Estate Development Center said that the Vietnamese industrial park market is in a strong development stage with a lot of potential. Stock codes such as KBC, IDC, BCM, SZC, SIP are highly appreciated thanks to their large land fund, favorable location and stable business results.
However, investing in industrial park real estate stocks is more suitable for a long-term strategy than short-term trading. Investors need to closely monitor FDI attraction policies, foreign capital flows and infrastructure progress to make optimal decisions.
The list of 31 listed industrial park infrastructure development companies will be detailed in the Vietnam Industrial Real Estate Yearbook - Development Plan to 2030. Investors need to consider factors when choosing industrial park real estate stocks. In particular, enterprises with large land areas will have long-term growth advantages. Occupancy rates and land rental prices are important indicators reflecting business performance and future profits. Enterprises with low debt ratios and stable cash flows will have better risk tolerance.
Minh Thu
Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/co-phieu-doanh-nghiep-phat-trien-ha-tang-khu-cong-nghiep-co-con-hap-dan/20250319083657788
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