The appearance of many "eagles"
In 2023, real estate across the country in general faced many difficulties, global economic factors, legal factors, and credit capital had direct major impacts on this market.
However, in the face of a gloomy market, the industrial real estate segment is still considered one of the "bright spots" of 2023 with high price growth.
According to the 2023 real estate market report and 2024 market forecast of the Vietnam Association of Realtors (VARS), industrial real estate will maintain its leading position throughout 2023.
Vietnam is a new production and business base for a series of foreign enterprises, especially in the high-tech sector.
Many industrial parks are developing strongly, large land funds attract investors.
In 2023, Vietnam will have 7 industrial parks in operation and 13 industrial parks under construction. VARS assessed that in 2023, many “eagles” from countries such as Hong Kong and Taiwan… will invest in industrial parks to develop factories.
VARS also said that the country has a total of 412 established industrial parks with a total area of 217.5 thousand hectares. 293 industrial parks have been put into operation with a total natural land area of about 92.2 thousand hectares, industrial land area of about 63 thousand hectares. 119 industrial parks are under construction with a total natural land area of about 37.5 thousand hectares, industrial land area of about 24.7 thousand hectares.
Occupancy rates and rents continued to grow despite the economic challenges. The slight decline in occupancy rates was only localized in a few provinces with a lot of new supply available.
Rental prices in the industrial real estate segment are expected to increase by 20% over the same period. The Central region has an average rental price of 188 USD/m2/rental period (up 15% over the same period).
Factories and high-tech zones are developing to meet the needs of the times.
In areas with a large amount of industrial real estate such as Ho Chi Minh City and Binh Duong, there has been no price fluctuation because the available industrial parks have been filled with long-term leases.
According to the report, currently, industrial parks and economic zones have attracted over 10,400 domestic investment projects and over 11,200 valid foreign direct investment (FDI) projects, with a total registered investment capital of over VND2.54 trillion and USD231 billion, respectively. FDI capital in industrial parks and economic zones accounts for about 35 - 40% of the total registered FDI capital increase of the whole country in recent years.
Industrial real estate continues to "spread its wings"
According to Nguoi Dua Tin , in the southern region, besides Ho Chi Minh City, neighboring provinces such as Dong Nai, Binh Duong, and Long An are among the provinces attracting extremely large FDI capital.
In Binh Duong, industrial parks such as Becamex and VSIP I.II.III are being developed systematically. These are considered large industrial park investors, bringing good infrastructure and green, friendly industrial park development values.
Transport and social infrastructure... are being systematically developed by many localities, contributing to attracting FDI capital into the industrial sector.
Binh Duong Provincial People's Committee said that in 2023, the province attracted 85,498 billion VND in registered business capital as of December 15. Foreign investment as of December 15 attracted 1 billion 495 million USD.
As for Dong Nai province, as of November 2023, the province has attracted nearly 18 million USD in foreign direct investment in industrial parks in the province. Of which, there are 3 new FDI projects with registered capital of nearly 11 million USD and 5 projects with increased capital of nearly 7 million USD.
Or according to data from the Ho Chi Minh City Statistics Office, in the 11 months of 2023, including newly licensed projects, capital increases, capital contributions, share purchases, and share buybacks, total foreign direct investment in the city reached more than 3 billion USD, down 12.9% over the same period last year.
Specifically, there were 1,090 newly licensed projects, up 35.1% over the same period, and registered capital reached 573.5 million USD, up 20.1%.
A corner of a factory, industrial park, port... in Ho Chi Minh City.
Assessing the trend in 2024, Mr. Nguyen Van Dinh - Chairman of VARS said that the industrial real estate segment continues to flourish. Vietnam still has many driving forces to help the industrial real estate market promise to flourish in 2024.
Many new industrial park investment projects have been approved in principle and are starting to implement the next phases. The supply of industrial real estate is witnessing growth in both regions. The demand for industrial real estate is still very large, especially the demand for multi-purpose multi-storey warehouses and ready-built factories.
In addition, provinces and cities are currently researching and proposing many planning options and removing legal obstacles to create favorable conditions for economic development, which will also greatly impact industrial real estate.
According to Mr. Nguyen Van Dinh, the supply in 2024 is forecast to continue to increase, especially industrial parks that are developing in a modern, smart direction and focusing on the "green" factor. In the next 10 years, Vietnam is expected to plan an additional 115,000 hectares of land for industrial parks, with about 558 industrial parks nationwide, nearly 1.5 times the current number.
Experts say that ready-built factories and warehouses continue to lead the industrial real estate segment.
In addition, FDI capital in industrial parks and economic zones continues to maintain an upward trend. It is expected that by 2024, FDI capital in industrial parks and economic zones will account for about 45% of the total registered FDI capital increase in the country.
Ready-built factories and warehouses continue to lead the industrial real estate segment in terms of demand, and Vietnam continues to be a country chosen by many foreign investors. Investors from Singapore, Hong Kong, China, Korea, the US, etc. will be potential customers of Vietnam's industrial real estate.
Rental prices of high-quality industrial parks continue to have the opportunity to increase. This segment will maintain its growth momentum in 2024, especially when the world political situation still has many potential risks and tensions, Vietnam is still a bright spot in the region.
Speaking with Nguoi Dua Tin , Mr. Phan Tan Dat, Chairman of the Board of Directors of Binh Duong Mineral and Construction Joint Stock Company (KSB), commented: “Currently, the global economic recession is showing signs of slowing down and economic development may gradually recover from 2024. Industrial real estate will continue to be a “bright spot” in the real estate segment. For example, KSB Company is also completing legal procedures to bring to the market about 200 hectares of industrial land by the end of 2024.”
According to Mr. Dat, currently, investing in industrial parks and attracting customers is not easy. In addition to the policies of industrial park investors themselves, local authorities must also be an important “key” in attracting investors.
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