Accelerating industrial real estate supply

The industrial real estate market has witnessed a strong acceleration from domestic and foreign investors. The supply of industrial real estate is expected to explode this year.

The industrial real estate market has witnessed a strong acceleration from domestic and foreign investors. The supply of industrial real estate is expected to explode this year.

Industrial real estate will see a large increase in supply in 2025. In photo: VSIP Industrial Park. Photo: Le Toan

A series of new projects were approved.

Recently, Hung Yen Investment and Development Corporation was approved to invest in the Project of Construction and Business of Infrastructure of Kim Thanh 2 Industrial Park - Phase I (Hai Duong). The project is implemented in Dai Duc and Tam Ky communes (Kim Thanh district), with a scale of nearly 235 hectares, investment capital of 3,403 billion VND, of which the investor's capital contribution is 513.85 billion VND. The project's operating period is 50 years, from the date of investment policy approval.

It is known that Hung Yen Investment and Development Group Joint Stock Company is a subsidiary of Kinh Bac Urban Development Corporation, with a charter capital of VND 1,800 billion. This company is managing 3 industrial clusters in Hung Yen province including Kim Dong (75 hectares), Dang Le (75 hectares) and Chinh Nghia (75 hectares).

In addition to this project, another subsidiary of Kinh Bac, Saigon - Hai Phong Industrial Park Joint Stock Company (SHP), was also approved as the investor of the Trang Due 3 Industrial Park Infrastructure Investment and Business Project (Hai Phong City). This project covers an area of ​​nearly 653 hectares, located in the communes of Truong Tho, Truong Thanh, An Tien, Bat Trang (An Lao district); the total investment capital is over VND 8,094 billion.

In Nghe An, WHA Industrial Zone Nghe An Joint Stock Company (under WHA Group, Thailand) has just been approved to invest in the WHA Industrial Zone 2 - Nghe An Project (under Nam Cam D Industrial Park). This project has a scale of more than 183 hectares, located in the two communes of Nghi Hung and Nghi Dong (Nghi Loc district); the total investment capital of the project is about 1,200 billion VND, of which the investor's contribution is about 216 billion VND. The industrial park will operate for 50 years, with a maximum implementation period of 24 months from the date of land handover.

WHA Group is also the investor in phase I of the WHA Industrial Zone Nghe An Project, with a scale of nearly 500 hectares. At the end of November 2024, this group was approved to invest in a 55 million USD industrial park in Hoang Hoa district (Thanh Hoa).

In Bac Giang, two new projects have just been approved. Of which, Gilimex Bac Giang Industrial Park Joint Stock Company (a subsidiary of Gilimex) invested in Nghia Hung Industrial Park of nearly 149 hectares, with a total investment of VND2,200 billion. Hanoi - Bac Giang Industrial Park Infrastructure Investment Joint Stock Company invested in Song Mai - Nghia Trung Industrial Park of more than 197 hectares, with a total investment of more than VND2,806 billion.

Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Assessment Institute, said that the supply of industrial land will continue to increase thanks to new industrial parks and expansion projects in existing industrial parks. In the period of 2024 - 2027, Vietnam is expected to have about 15,200 hectares of industrial land supply, more than 6 million square meters of total warehouse supply.

Demand continues to increase

It is not difficult to understand why in the first months of 2025, industrial real estate witnessed strong growth in supply. In fact, this segment is considered to be "money-making", many large enterprises operating in the industrial park real estate sector reported profits of over a thousand billion VND last year.

IDICO Corporation recorded a 22% increase in revenue for the whole year of 2024, reaching more than VND 8,846 billion; profit after tax increased sharply by 45%, reaching VND 2,393 billion - a record high annual profit for the enterprise.

Of this, revenue from industrial parks increased by 21% over the same period, reaching nearly VND4,000 billion, accounting for 45% of total revenue; real estate business revenue increased by 5 times, reaching nearly VND532 billion; electricity business revenue also increased by 15%, to VND3,373 billion.

Similarly, Becamex IDC Corporation also achieved revenue and profit after tax of VND5,889 billion and VND1,621 billion, respectively, up 8% and 16% compared to last year. The main revenue-generating segments are still industrial park business, clean water supply, port services and waste treatment.

Nam Tan Uyen Industrial Park Joint Stock Company also brought in VND368 billion in net revenue last year, up 56%; after-tax profit was nearly VND317 billion, up 6%. This enterprise said that the sharp increase in sales revenue was mainly due to the recording of the industrial park infrastructure leasing segment.

In a recent report, Vietcap Securities Joint Stock Company stated that the demand for long-term industrial land leases will be driven by the trend of global manufacturers shifting their supply chains to Vietnam and Vietnam’s efforts to improve its position in the global value chain. In addition, new government policies and initiatives are expected to support the semiconductor industry and other high-tech industries.

The government has planned to increase the industrial park land area by 55% by 2030 compared to 2020, to approximately 210,900 hectares. Contracts of large FDI enterprises often require tens of hectares of land in areas with good infrastructure connectivity, giving advantages to some investors with large enough land funds and many years of experience in the industry such as VSIP, Becamex, Kinh Bac, IDICO, Viglacera...

Mr. David Jackson, General Director of Avison Young Vietnam, said that industrial and logistics real estate is still the segment that foreign investors are most interested in in Vietnam. The supply of this segment promises to be more abundant, as many industrial parks are licensed and started construction across the country.

In early 2025 alone, authorities approved investment in five large industrial parks in Hai Phong, Da Nang, Can Tho, Dak Lak and Nghe An, with a scale of more than 1,600 hectares. With the prospect of attracting foreign investment, industrial land rental prices in key markets in the North and South are expected to increase by 2-5% per quarter.

Source: https://baodautu.vn/batdongsan/tang-toc-nguon-cung-bat-dong-san-cong-nghiep-d246374.html