The industrial real estate market has been expanded in supply with policies to attract foreign investment to industrial zones across the country. This has created many business opportunities for businesses and, at the same time, helped warehouse or factory leasing in Vietnam become a “golden land” for investors in the period of 2022–2025.
Industrial park land available for lease increases sharply in 2022
In 2022, the industrial real estate industry will continue to have positive changes thanks to the innovative policies of Vietnam. In the first 6 months of 2022, the Deputy Prime Minister approved 9 new industrial zones with a total area of 2,472 ha and a total investment capital of 29.4 trillion VND. It is expected to be put into operation from the end of 2023 to 2025.
The Hanoi People’s Committee has signed a decision to build two to five new industrial parks from 2021 to 2025 in Soc Son, Dong Anh, Bac Thuong Tin, Phu Nghia, and Phung Hiep.
Due to increasing demand, projects in the South maintain a relatively high occupancy rate of 88% and rent at $6/m2/month. The rental capacity in the North is approximately 78%, with the average rental price reaching $5/m2/month.
VSIP 3 in Binh Duong (1,000 ha) has been put into operation and has started construction at Thuan Thanh I Industrial Park, Bac Ninh. The project will add 160 hectares of leased land, expanding Hanoi’s leased land area to 10,024 hectares.
VSIP 3 Industrial Park-Binh Duong attracts sources with huge FDI in the process of investment and development
Bac Ninh provincial government has also promoted the construction of Que Vo II and Gia Binh industrial zones. Quang Tri Industrial Park and Trieu Phu Industrial Park (Quang Tri) are being accelerated, while Long Duc 3 and Bau Can Industrial Parks (Dong Nai) will be completed soon.
The development of the land bank has demonstrated the warehouse or factory industrial outlook in Vietnam. This will be a market that attracts a lot of FDI in the future.
Demand for industrial zones attracts FDI investors
With the industrial park outlook in Vietnam attracting FDI, the government has introduced policies to exempt CIT from 0% within the first 4 years of operation and to reduce tax by 5% for the next 5 years.
By June 20, 2022, the total registered FDI capital had reached 14 billion USD. There are 752 new projects with a registered investment capital of 4.9 billion USD and 487 existing projects with a capital increase of 6.8 billion USD.
FDI flows into industrial zones in the South; Binh Duong and Long An are bright spots with strong growth. Binh Duong received 2.5 billion USD, of which Lego Group-Denmark was the third largest contributor with 1.3 billion USD. The factory in Phu An Thanh Industrial Park, Long An, has received an investment capital of more than 136 million USD from Coca-Cola. The occupancy rate reached 85%.
Long An has become one of the highlights, attracting domestic and foreign investors
VSIP Bac Ninh Industrial Park received an additional 941 million USD in FDI capital. Goertek Group has increased capital by nearly 306 million USD for the Que Vo Industrial Park manufacturing plant project. The strong inflow of FDI has helped the occupancy rate increase by 5% from 75% to 80% over the same period last year. This has made the industrial land rental price also reach 109 USD/m2/lease cycle.
Along with that, China’s Zero COVID policy hinders many foreign enterprises in building supply chains. Therefore, many enterprises have moved their production plants to Vietnam to continue their business operations. Highlights include Samsung, Microsoft, Dell, Intel, Stanley Black & Decker, and others.
Read more: Land Rent in Vietnam Fluctuates Sharply in the First Half of 2022 and is Forecast to Continue to Peak in the Second Half
Warehouse or factory rental service in Vietnam of Savills Industrial is reputable, professional, diverse in types
Savills Vietnam offers a full package of consulting services including manufacturing, logistics, warehouse or factory leasing in Vietnam, provided by leading experts with extensive knowledge and experience of the market. We assist with every aspect, from market entry to planning and development, leasing, investing, valuation, trading, or liquidation.
In addition, Savills Vietnam provides a professional and transparent consulting process to help customers understand the service and thoroughly solve problems for customers who rent warehouses or factories in Vietnam. From there, customers can easily make the optimal choice suitable for their business activities.
Savills Vietnam has become a partner of many large corporations and enterprises in the world
Triac Composites General Manager-Phil Johns commented on Savills Vietnam’s services: “Savills’ Industrial Real Estate division found us the right options for all of our needs. I especially recommend Savills to those who are looking for an industrial real estate solution in Vietnam.”
Customers can refer to some of our typical projects as follows:
SBN-FW15 ready-built workshop/warehouse for rent in Yen Phong, Bac Ninh
+ Vacant area: 69,000m2
+ Workshop/warehouse area: 812-20,000m2
+ Floor load: 1.5 – 2.5 tons/m2
+ Ceiling Height: 8.7-10m
+ Price : Contact Savills
Modern warehouse in Bac Ninh is the perfect choice for many businesses
Factory for rent in Pho Yen, Thai Nguyen
+ Vacant area: 76,703m2
+ Lease term: minimum 3 years
+ Floor load: 1 ton/m2
+ Ceiling Height: 6.5-10m
+ Price : Contact Savills
Factory for rent in Thai Nguyen full service, attractive price policy
Factory for rent in Nhon Trach, Dong Nai
+ Vacant area: 20,740m2
+ Lease term: minimum 3 years
+ Floor load: 3 tons/m2
+ Ceiling height: 7m
+ Price : Contact Savills
Large space of factory for rent in Nhon Trach, Dong Nai
Factory for rent in Binh Duong
+ Vacant area: 25,640m2
+ Lease term: minimum 3 years
+ Floor load: 1.5 tons/m2
+ Ceiling Height: 7.7-11m
+ Price : Contact Savills
Factory for rent in Binh Duong attracts many businesses to choose
Factory for Lease in Thai Binh
+ Vacant area: 252,000 m²
+ Lease Term: 2071
+ Loading capacity: 1 ton/sqm
+ Ceiling height: 12.8
+ Price : Contact Savills
Read more: How much does it cost to rent warehouse logistic service Vietnam?
Conclusion
The growth of industrial real estate has created many opportunities for investors and developers. With the expanded land fund when establishing industrial zones and the flow of FDI capital, it will create many new developments for the real estate market. In particular, when the demand for leasing warehouses or factories is expanded, it will become a promising market for investors.
If you are in need of advice on warehouse or factory leasing in Vietnam, please contact Mr. John Campbell immediately via the hotline: 0986.718.337. We provide solutions to rent factories or warehouses. Businesses save time by taking advantage of the most competitive rental rates in the market and receiving prompt legal assistance.
In addition, you can refer to the industrial real estate projects of Savills Industrial here.
