Industrial property refers to commercial real estate properties that are specifically designed and utilized for manufacturing, warehousing, and distribution purposes. These properties are characterized by their size, location, and features such as loading docks, high ceilings, and specialized ventilation systems.
The Vietnamese real estate market for industrial property has been growing rapidly in recent years. Vietnam’s strategic location, favorable investment climate, and lower costs compared to other countries in the region make it an attractive destination for businesses looking to set up operations in Southeast Asia. The country’s manufacturing and logistics sectors are experiencing significant growth, driving demand for industrial property across the country. As a result, investors and businesses are increasingly looking to the Vietnamese real estate market for opportunities to invest in and acquire industrial properties.
Reasons to buy industrial property in Vietnam
There are several compelling reasons why businesses and investors should consider where to buy industrial property in Vietnam. In this section, we will discuss the key reasons why investing in industrial property in Vietnam is an attractive opportunity.
Lower costs compared to other countries in the region
Vietnam’s industrial property market offers lower costs compared to other countries in the region. According to Savills’ 2023 Industrial Investment Briefing, Vietnam’s average industrial land price is around 30% lower than in Thailand and 50% lower than in Indonesia. This makes Vietnam a highly attractive destination for businesses looking to reduce their operational costs.
Favorable investment climate
Vietnam’s investment climate is highly favorable for businesses and investors looking to invest in industrial property. The Vietnamese government has implemented various policies and initiatives aimed at attracting foreign investment and supporting the growth of the country’s industrial sector. In addition, Vietnam has a highly skilled and educated workforce, and the country’s economic growth is projected to continue at a rapid pace.
Increasing demand for industrial property
Due to the country’s expanding manufacturing and logistics sectors, the demand for industrial property in Vietnam has been rising quickly in recent years. According to Savills, Vietnam’s industrial property market has seen strong demand from both foreign and domestic investors, with an increase in both the number and size of industrial parks across the country. The growth of e-commerce and the rise of Industry 4.0 are also driving demand for industrial property in Vietnam, with businesses seeking modern, well-equipped properties to support their operations.
Factors to consider when buying industrial property in Vietnam
When it comes to buying industrial property in Vietnam, there are several factors that businesses and investors need to consider. In this section, we will discuss some of the key factors that should be taken into account when buying industrial property in Vietnam.
Location and accessibility
Location is one of the most important factors to consider when buying industrial property in Vietnam. The property’s location should be easily accessible to major highways, airports, and seaports to ensure efficient transportation of goods and materials. Businesses should also consider the proximity of their property to their suppliers and customers, as this can impact logistics and supply chain management.
Infrastructure and utilities
The availability and quality of infrastructure and utilities are also important considerations when buying industrial property in Vietnam. Investors should look for properties that have access to reliable utilities such as electricity, water, and telecommunications. Additionally, properties that are well-equipped with modern infrastructure, such as high-speed internet and advanced security systems, can help streamline business operations and increase productivity.
Zoning and regulations
Zoning and regulatory requirements can also impact the decision to purchase industrial property in Vietnam. Investors should ensure that the property they are considering is zoned for industrial use and complies with all local regulations and requirements. They should also be aware of any environmental or safety regulations that may impact their business operations and ensure that the property meets all necessary standards.
Property Condition and Maintenance
The condition and maintenance of the property are also important factors to consider. Investors should conduct a thorough inspection of the property to identify any maintenance issues or potential repairs that may be needed. They should also consider the age and condition of the property’s infrastructure and equipment, such as HVAC systems, roofing, and loading docks, to ensure that they are in good working order.
Buy industrial land in Vietnam requires careful consideration of a range of factors, including location, infrastructure, zoning, and property condition. Businesses and investors should conduct thorough due diligence and seek expert advice to ensure that they make informed decisions and select properties that meet their specific needs and objectives.
Benefits of working with a property leasing service provider
When looking for industrial property to lease in Vietnam, businesses and investors can greatly benefit from working with a property leasing service provider. In this section, we will discuss some of the key benefits of working with a leasing service provider.
Access to a wider range of properties
A leasing services provider can offer businesses access to a wider range of industrial properties, including those that may not be publicly listed or easily accessible to the general market. This can help businesses find properties that meet their specific needs and objectives and are not available through other channels.
Expertise and industry knowledge
Property leasing service providers have expertise and knowledge of the industrial property market in Vietnam. They can offer valuable insights into market trends, pricing, and availability, which can help businesses make informed decisions and navigate the complex process of leasing industrial property.
Negotiation and transaction support
Leasing service providers can provide support and guidance throughout the negotiation and transaction processes. They can assist with lease negotiations, ensuring that businesses receive favorable terms and conditions. Additionally, they can provide legal and financial support, helping businesses navigate the complex legal and financial requirements associated with leasing industrial property.
Time and Cost Savings
Working with a leasing service provider can also help businesses save time and costs associated with finding and leasing industrial property. Leasing service providers can take on the time-consuming tasks of property searches, negotiations, and transaction management, allowing businesses to focus on their core operations.
By leveraging the expertise, industry knowledge, and transaction support of a leasing services provider, businesses can access a wider range of properties, save time and costs, and make informed decisions that meet their specific needs and objectives.
Savills Industrial: Leading property leasing services provider in Vietnam
Savills Industrial is a trusted provider of property leasing services in Vietnam. The company offers a wide range of services, including property management, investment sales, and leasing, to help businesses find the ideal industrial property for their operations. By partnering with Savills Industrial, businesses can benefit from the company’s expertise, experience, and industry knowledge, ensuring that they get the best possible deal on their industrial property investment with step-by-step guidance on buying properties in Vietnam.
Conclusion
In conclusion, industrial space to buy in Vietnam can be an attractive investment opportunity for businesses. By carefully considering factors like location, infrastructure, and regulations, businesses can make a sound investment in the country’s growing industrial property market. Partnering with a reputable property leasing services provider like Savills Industrial can provide businesses with the guidance and support they need to make a successful investment in Vietnam’s industrial property market.
