Industrial logistics real estate in Vietnam has seen great development over the past 2 years due to the rise of e-commerce, to a point where the market is lacking in supply of high-quality projects to satisfy the surge in demand. This is a great opportunity for businesses to invest in this real estate sector for huge profits.
The prospect of Vietnam’s logistic real estate market in 2022
The past 2 years of the pandemic have shifted customers’ behavior towards online shopping, which became the number one shopping method for many people. This is creating a great opportunity for the logistics real estate market to recover.
According to a Google report on digital economy statistics, Vietnam’s e-commerce is expected to grow by 30% within the 2020-2025 period, and reach $150 billion by 2030. This remarkable growth potential is a catalyst for the logistics real estate market’s great development.
E-commerce is pushing the development of logistics industrial real estate in Vietnam
Vietnam’s free trade agreements with other countries are playing a big role in facilitating international trade and economic development, helping local businesses be a part of big global supply chains.
There is an abundance of policies to attract foreign investment into industrial parks and clusters, which encourages the development of Vietnam’s logistics real estate. The country’s transportation industry and logistics industry is expected to grow by 7% annually until 2026.
Another growth opportunity for Vietnam’s logistic real estate is the fact that the country ranks 11th in the top 50 emerging logistics market in 2020.
Logistics is an important factor to ensure the success of real estate and e-commerce. Many domestic and foreign logistics service providers have been investing in the highly lucrative market of Vietnam.
Great opportunities for investors in the logistics real estate market
While there have been remarkable developments, Vietnam’s logistics market and related infrastructure works are still under-developed, with most investment only poured into big cities. This is a big opportunity for businesses to invest in logistics real estate to create more supply for the market.
The industry has also not reached its potential. Out of around 3,000 logistics companies in Vietnam, more than 90% of them have registered capital of under $440,000; 5% have registered capital of $440,000 – $880,000, and the rest have more than $880,000. Foreign companies also account for around 75% of the industry’s revenue, even though their supply of logistics services is small.
Vietnam’s logistics market has not reached its full potential
In February this year, CapitaLand Development poured over $1 billion into an industrial, logistics and urban area project in Bac Giang Province.
Warburg Pincus also worked with Becamex IDC to set up a joint venture called BW Industrial to provide outstanding logistics and industrial real estate projects around Vietnam, with around $200 million in capital.
The Government will also create more policies and regulations surrounding logistics real estate to create a favorable environment to attract investment into the area and facilitate business development.
Read more: Plenty of Real Estate Agency in Vietnam, but How Good Are They?
Savills Vietnam – Provider of top logistics real estate solutions for rent
As more and more people are moving away from traditional shopping to online shopping, the development of the logistics industry is inevitable. But the supply of logistics real estate projects have yet to match the market’s high demand.
Savills Industrial Vietnam – provider of top logistics real estate solutions of rent
Savills Vietnam is Vietnam’s leading provider of logistics and industrial real estate, with projects spanning across Vietnam, especially in big cities. Its wide variety of available projects can help satisfy businesses’ expansion needs and ensure smooth goods transportation.
With a team of dedicated, ethical and highly experienced consultants and transparent work procedures, Savills Vietnam is able to provide many real estate solutions and satisfy all kinds of customer needs.
Savills Vietnam also continuously learn and consult top real estate experts from countries with highly developed property market such as the US, the UK, Singapore, Japan and Australia to improve its products and help businesses operate better.
Read more: Small Industrial Space for Lease in Vietnam: A Cost-Optimized Solution for SMEs
Conclusion
There is a great deal of opportunity for savvy investors in the area of industrial logistics real estate in Vietnam to potentially reap huge profits, due to the industry’s rapid development.
If you are interested in finding a logistics and industrial real estate solutions provider in Vietnam, please contact Mr John Campbell via hotline: 0986.718.337 to receive detailed consultation on available projects.
In addition, you can find out more about our other industrial real estate products here.
