The industrial real estate market has witnessed accelerated investment from domestic and foreign investors, with foreign investors expanding their market through mergers and acquisitions (M&A).
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A recently released report by Cushman & Wakefield shows that the industrial real estate M&A market is bustling thanks to policies promoting investment in key connecting infrastructure such as the North-South Expressway and Long Thanh International Airport. In addition, newly passed laws such as the Land Law and the Real Estate Business Law will simplify legal procedures, increase the supply of industrial real estate and create opportunities for foreign investors.
Recently, Tripod Technology Group (Taiwan) leased 18 hectares of land in Chau Duc Industrial Park (Ba Ria - Vung Tau), with a total registered capital of 250 million USD, to build a factory to produce electronic circuits and electronic circuit boards. In Bac Ninh, Johnson Health Tech Group (Taiwan) registered an investment project with a total capital of 100 million USD in Thuan Thanh 1 Industrial Park, to build a factory to produce fitness and sports equipment.
Previously, Singaporean investment fund Mapletree Logistics Trust spent SGD 68.4 million (over USD 50 million) to acquire two Grade A warehouses in Binh Duong and Hung Yen, strategically located on the border between Ho Chi Minh City and Hanoi. Daiwa House Logistics Trust acquired Project D Tan Duc 2 in Long An for USD 26.5 million, marking the first time this trust has owned real estate in Vietnam.
In addition, Lineage – a real estate investment trust (REIT) has completed a joint venture agreement with cold storage operator SK Logistics to operate two cold storage projects in Hanoi and Hung Yen.
Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, assessed that starting in 1986 with only about 335 hectares of land for industrial parks, Vietnam has increased to nearly 150,000 hectares in 2024 and gradually affirmed its position as one of the leading manufacturing centers in Southeast Asia.
From 2020 to September 2024, the total value of real estate M&A transactions reached 2.94 billion USD, of which industrial real estate led with a proportion of 40%. In M&A in the first 9 months of 2024 alone, industrial real estate accounted for 91% of the total transaction value of 178 million USD.
While foreign enterprises are pushing M&A to expand their land fund, domestic enterprises are continuously proposing and getting approval to invest in new industrial park projects. For example, Viglacera is surveying and proposing to prepare documents to request approval of investment policies to implement new industrial park projects in localities with advantages in infrastructure, investment attraction and business capacity.
Specifically, Viglacera will establish new legal entities and branches to implement the projects of Phu Ninh Industrial Park (400 hectares) and Bac Son Industrial Park (200 hectares) in Phu Tho; Dong Mai Industrial Park expansion (150 hectares) in Quang Ninh; Tay Pho Yen Industrial Park (868 hectares) in Thai Nguyen... It is expected that by 2025, this enterprise will record an increase in industrial park land fund of 2,000 - 3,000 hectares in potential locations.
Meanwhile, IDICO's Board of Directors has repeatedly said that the company aims to expand 2,000 hectares of industrial park land in the coming time and is accelerating the implementation of the proposed plan with many positive signals. In September 2024, a subsidiary of IDICO was approved as an investor in the My Xuan B1-CONAC Industrial Park Project, expanding to 111 hectares in Ba Ria - Vung Tau. Previously, another subsidiary of this company was approved to invest in Tan Phuoc 1 Industrial Park in Tien Giang with an area of 470 hectares.
Phat Dat Real Estate Company is researching, searching for clean land funds and implementing many industrial park projects in Quang Ngai, Binh Duong, Dong Nai, Ba Ria - Vung Tau, Dong Thap... In Dong Thap alone, Phat Dat owns nearly 2,000 hectares of industrial land.
According to Cushman & Wakefield's forecast, the supply of industrial real estate will grow significantly in the period of 2024 - 2027. Specifically, for the provinces in the Northern Key Economic Zone and the Southern Key Economic Zone, the supply of industrial land will increase by 10,600 hectares, with a growth rate of 7.5%/year. Meanwhile, ready-built factories and ready-built warehouses will increase by 1.9 million m2 of floor space and 2.6 million m2 of floor space, respectively, growing by 5.9%/year and 10.1%/year.
“Vietnam is developing its economy towards exports and encouraging business in this field. With the ambition to promote Vietnam to become a new industrial center in Southeast Asia and the efforts of the Government, we believe that the Vietnamese industrial market will continue to be a magnet for investment capital,” said Ms. Trang Bui.
Source: https://baodautu.vn/von-dau-tu-don-dap-do-vao-bat-dong-san-cong-nghiep-d231922.html
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