The occupancy rate of industrial zones reached 95%, leading to a sharp increase in industrial land for lease. In particular, the southern provinces recorded rental rates up to 300 USD/m2/lease cycle. Join Industrial Savills Vietnam to learn about the land rental price list in the IP.
What is the industrial land lease cycle?
“How long is the lease cycle for industrial land for lease?” This is a question that many businesses wonder when learning about industrial real estate projects. In order for investors to get accurate information, the Law of Vietnam has clearly defined this concept.
The Land Law 2014 and Decree 43/2014 ND-CP clearly state that the land lease cycle in industrial zones is usually calculated based on the investment period of the project. Accordingly, the total period of industrial land use must not exceed 70 years. The project lasts longer than the remaining time, so enterprises have to build infrastructure; apply for a permit to adjust the land lease cycle so that it is reasonable.
In order to meet the diverse needs of enterprises, the land lease cycle will be calculated on an annual basis. As a result, the cost of renting industrial land varies greatly, especially between the North and South regions.
What is the rental price of land in industrial zones?
Due to a real estate market with a high occupancy rate and not enough land, land rental prices in industrial zones went up quickly.
The northern region, which has a relatively good occupancy rate compared to last year, has pushed up land rents by an average of 5–12% in the industrial centers of the region. Some industrial zones also recorded a record 20% increase in rent. According to predictions, the number of workshops available for rent in warehouses will rise by about 3% annually.
The South recorded an increase in industrial land for lease. Ho Chi Minh City achieved a 95% occupancy rate for the 4,100 ha land bank, recording the highest average rental price, ranging from 180–300 USD/m2/lease cycle.
Long An has an occupancy rate of 85%, and the average price is about 125–275 USD/m2/lease cycle. In Binh Duong, with a total area of 10,000 ha, the occupancy rate is 95%, and the price is about 100–250 USD/m2/lease cycle; in Dong Nai, with an occupancy rate of 95% for more than 10,000 ha of land, the rental price is about 100–200 USD/m2/lease cycle.
Guidance on procedures for leasing land in industrial parks
To rent industrial land, enterprises need to prepare a full set of documents, including the following:
– Industrial land lease application (according to the prescribed form).
– Copy of the investment certificate or written approval of the investment purpose.
– Outline of the project when entering the industrial park.
– Written assessment of land lease demand
– Documents on the appraisal of land lease conditions.
– Extract the map of the rental land.
The land lease process includes the following steps:
– Step 1: You search for a place to rent industrial land that suits your needs, fields, costs,…
– Step 2: Negotiate relevant terms and sign a contract in principle for a land lease.
– Step 3: Complete the registration procedure for an investment registration certificate and business registration.
– Step 4: Sign a contract to lease land in the industrial park, as well as the minutes of handing over the leased land’s boundary.
– Step 5: Apply for permits for the following documents: fire protection, environmental impact assessment, warehouse or factory construction permit.
– Step 6: Proceed to build the work according to the intended use.
Read more: Unleashing Opportunities: A Comprehensive Guide to Investing in Vietnam
Savills Vietnam provides reputable, all-inclusive industrial land leasing solutions with dedicated support from a professional team
Established in 2017, Savills Vietnam offers full consulting services, including real estate, manufacturing industry, and logistics, provided by leading experts with extensive market knowledge and experience. We support every aspect, from market entry to planning, industrial land rental, investment, valuation, or liquidation.
Savills also has a rich data source based on visual observations, location analysis based on real business information, scoring of potential industrial sites, negotiation support, and an industrial park overview, investors, benchmarking against key variables,… With the above advantages, Savills always brings the optimal solution, the most competitive price in the market to customers.
The team of consultants, led by John Campbell, Deputy Director of Industrial Real Estate Services, has created a professional consulting process to solve each customer’s problem, helping investors easily make a decision. intends to pour capital into sublease industrial land projects.
Industrial land for rent in Gia Vien, Ninh Binh
– The whole area: 50 ha.
– Vacant area: 20.41 ha
– Land use term: 2065
– Rent cost: Contact
Industrial land for rent in Cat Lai, Ho Chi Minh City
– The whole area: 4.8 ha
– Vacant area: 4.8 ha
– Land use term: 2061
– Rent cost: Contact
Industrial land for rent in Go Dau, Tay Ninh
– The whole area: 1,020 ha
– Vacant area: 180 ha
– Deposit: 10%
– Rent cost: Contact Savills Vietnam
Industrial land for rent in Ben Luc, Long An
– The whole area: 369 ha
– Vacant area: 88 ha
– Deposit: 20% of the total rent
– Rent cost: Contact Savills Vietnam
Read more: Procedures for Industrial Land for Rent to Build Factories in 2023
The country’s real estate market gradually recovered after a long time of freezing, creating favorable conditions for investors to pour capital into it strongly. Due to the scarcity of land funds, the land rental price in the IP has reached a record compared to previous years.
If you are in need of industrial land for lease in key industrial zones, please contact us immediately, either Mr. John Campbell via our hotline: 0986.718.337 or a team of senior experts at Industrial Savills Vietnam, for advice on cheap rental solutions suitable for your needs.
In addition, you can refer to Savills Industrial’s real estate projects.