In 2023, trends in Asia will be shaped by a multitude of factors, and amidst the instability of the global landscape, seizing opportunities for growth becomes paramount for countries. Among these opportunities, the realm of industrial real estate emerges as a shining star that investors must diligently explore when considering doing business in Asia.
Factors driving the development of Asian industrial real estate
Asia is experiencing a period of significant economic growth, which creates a growing need for manufacturing space and infrastructure. The increase in investment from businesses inside and outside the region has spurred the development of industrial real estate. This is expected to be the best business in Asia in the near future.
Political turmoil in the world has turned Asia into a global manufacturing and exporting hub. ADB’s Asian Economic Integration Report 2023 shows that, in 2021, FDI into the Asia-Pacific region has increased by 64.3%. China continues to be the leading destination for global FDI in Asia.
The development of trade is also a factor that strongly influences the rebound of the real estate sector. According to the World Trade Organization (WTO), the value of e-commerce in Asia has increased from $1.3 trillion in 2014 to $2.9 trillion in 2020, showing the explosion of e-commerce in the area.
Asian governments have invested significantly in infrastructure reform. In particular, Vietnam is the leading country in terms of infrastructure investment to promote the process of attracting FDI. Accordingly, Vietnam has spent about 5.7% of its GDP to achieve this goal.
Vietnam is transforming strongly to welcome a new wave of investment
In order to attract foreign investment into Vietnam, many businesses have increased investment in industrial and logistics real estate, which is considered a bright spot in the real estate market in 2023.
Vietnam, with its robust portfolio of 15 FTAs and significant cooperative agreements, including the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), is strategically positioned to foster collaboration and facilitate business opportunities for enterprises looking to engage in doing business in Asia and beyond, especially during these challenging times.
According to data from the Foreign Investment Department (Ministry of Planning and Investment), FDI in the first 5 months of 2023 reached nearly 10.86 billion USD, up 10.6% compared to the first 4 months of the year. New projects continue to focus on provinces and cities with advantages to attract foreign investment, such as Hanoi, Bac Giang, Ho Chi Minh City, Binh Duong, Dong Nai, Bac Ninh, and Hai Phong.
Foreign investors continue to pour capital into the Vietnamese market
The industrial real estate market continues to attract interest from global manufacturers, particularly in the electronics and energy sectors. Famous corporations such as Apple, Quanta, Samsung, and LG are investing billions of dollars in Vietnam.
Accordingly, experts predict a significant surge in business investment opportunities in Asia, encompassing various sectors such as ready-built factories, warehouses, logistics, data centers, and more. Capitalizing on these prospects and effectively navigating the landscape of doing business in Asia will enable enterprises to maximize their profitability and gain a competitive edge.
The attraction of multinational enterprises not only enhances the added value of export products but also expands the domestic consumption market. In the context of the difficult world economy, leading investors in Asia continue to focus on Vietnam.
Savills Vietnam, the leading industrial real estate investment service provider in Vietnam
With over 28 years of experience in industrial real estate, Savills Vietnam has emerged as a prominent player in Vietnam. As a trusted partner in business investment services, Savills holds a leading position in Asia’s real estate sector, particularly in the realm of industrial products. We offer a wide range of solutions tailored to meet the needs of businesses looking to establish a presence and thrive while doing business in Asia.
Savills Vietnam is the leading partner in providing business investment services in Asia
With a deep understanding of Vietnam’s industrial real estate market, Savills has built a team of consultants with in-depth knowledge and rich experience in this field. We are always willing to accompany customers, providing customized solutions and suitable investment strategies to ensure maximum efficiency and benefits for customers in the field of industrial real estate.
Not only taking full advantage of opportunities from the strong development of the industry in Vietnam but also shaping and promoting new industrial real estate investment trends, creating potential opportunities for investors and enterprises at home and abroad. Savills Vietnam has successfully advised and executed large industrial real estate investment transactions, from industrial parks, factories, and export processing zones to industrial urban areas and logistics real estate.
Industrial land for rent in Ba Ria – Vung Tau
– Total area: 1,556ha
– Vacant area: 1,556ha
– LURC Term: 2058
– Price: Contact Savills Vietnam
Industrial land for lease in Ba Ria – Vung Tau
Ready-built factory for rent in Yen Phong, Bac Ninh
– Total area: 150,000 m2.
– Vacant area: 69,000 m2.
– Unit Size: 812 – 20.002 m2.
– Price: Contact Savills Vietnam
Ready-built workshop/warehouse for rent in Bac Ninh
Ready-built factory for rent in Hai An, Hai Phong
– Total area: 96,000m2
– Vacant area: 48,000m2
– Ceiling height: 9m
– Floor loading: 3 tons/m2
– Price: Contact Savills Vietnam
Factory for rent in Hai Phong
Conclusion
Under the impact of FDI capital, e-commerce, the shifting trend of the world has opened up many opportunities for the Asian region to develop. Vietnam is changing strongly in terms of infrastructure, policies,… to attract businesses to invest in potential industrial real estate projects.
If you are looking for guidance on doing business in Asia, specifically in the realm of industrial real estate, please contact Mr John Campbell via hotline: 0986.718.337 or Savills Vietnam’s senior team of experts, for detailed advice on investment projects.
In addition, you can refer to the industrial real estate projects of Savills Industrial here.
