The industrial real estate market has witnessed a strong acceleration from domestic and foreign investors. The supply of industrial real estate is expected to explode this year.
A series of new projects were approved
In Bac Giang, new projects have just been approved. Of which, Gilimex Bac Giang Industrial Park Joint Stock Company (a subsidiary of Gilimex) invested in Nghia Hung Industrial Park of nearly 149 hectares, with a total investment of VND2,200 billion.
The Project is located in Dao My and Nghia Hung communes, Lang Giang district, Bac Giang province. The park offers excellent connectivity: 5km from National Highway 1A, 15km from Bac Giang city, 70km from Hanoi, 75km from Noi Bai International Airport, 130km from Hai Phong Port, 120km from Cai Lan Port (Quang Ninh), and 140km from Huu Nghi International Border Gate.
Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Assessment Institute, said that the supply of industrial land will continue to increase thanks to new industrial parks and expansion projects in existing industrial parks. In the period of 2024 – 2027, Vietnam is expected to have about 15,200 hectares of industrial land supply, more than 6 million square meters of total warehouse supply.
Demand continues to increase
In a recent report, Vietcap Securities Joint Stock Company stated that the demand for long-term industrial land leases will be driven by the trend of global manufacturers shifting their supply chains to Vietnam and Vietnam’s efforts to improve its position in the global value chain. In addition, new government policies and initiatives are expected to support the semiconductor industry and other high-tech industries.
The government has planned to increase the industrial park land area by 55% by 2030 compared to 2020, to approximately 210,900 hectares. Contracts of large FDI enterprises often require tens of hectares of land in areas with good infrastructure connectivity, giving advantages to some investors with large enough land funds and many years of experience in the industry.
Mr. David Jackson, General Director of Avison Young Vietnam, said that industrial and logistics real estate is still the segment that foreign investors are most interested in in Vietnam. The supply of this segment promises to be more abundant, as many industrial parks are licensed and started construction across the country.
With the prospect of attracting foreign investment, industrial land rental prices in key markets in the North and South are expected to increase by 2-5% per quarter.
