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Industrial real estate will boom this year

HQ (according to VnExpress) January 17, 2025 05:47

A series of large-scale industrial parks with investment approval promises to usher in a boom year for this segment.

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Danang IT Park (DITP) Project, Phase 1

In the early days of 2025, industrial park real estate is the "brightest" segment of the market when a series of projects with an area of ​​several hundred hectares were approved for investment across the country.

Specifically, in Nghe An, the WHA Industrial Zone 2 - Nghe An project in Nam Cam D industrial park with an area of ​​over 183 hectares and an investment capital of 1,200 billion VND has just been approved by the Government for investment policy.

Or in Da Nang, Hoa Ninh industrial park with an area of ​​over 400 hectares, located in Hoa Ninh commune, Hoa Vang district, has also had a decision approving the investment policy for construction, with an estimated budget of over 6,083 billion VND.

In Hai Phong, Dak Lak and Can Tho, Deputy Prime Minister Tran Hong Ha also signed decisions approving investment in four industrial parks, including: Nomura phase 2 (Hai Phong), with an area of ​​over 197 hectares; Phu Xuan industrial park (Dak Lak), with an area of ​​313 hectares and Vinh Thanh industrial park (phase 2 with an area of ​​over 540 hectares).

Not only the big names were approved, a series of investors such as Vinh Loc - Ben Luc Industrial Park Investment Joint Stock Company also proposed to build a 500-hectare industrial park project in Dong Nai; Sojitz Group (Japan), Sovico, Saigon Tel are interested and want to invest in green industrial park projects in Dong Nai...

The industrial park real estate market is considered by analysts to be the "brightest" and most promising segment in 2025-2026. According to statistics from the Ministry of Planning and Investment, industrial park real estate currently records a total foreign investment capital of nearly 31.4 billion USD. This year, the country is expected to have 1,704 industrial clusters with a total area of ​​58,123 hectares.

The report of the Vietnam Association of Realtors (VARS) also shows that from the beginning of the year to December 5, the country has had 28 more industrial park infrastructure investment projects adjusted or approved by the Government with an area of ​​about 8,991 hectares, more than double that of 2023. To date, the country has 443 industrial parks established with a total natural land area of ​​about 138,900 hectares and an industrial land area of ​​about 95,000 hectares. Of which, about 301 industrial parks have come into operation. The occupancy rate in industrial parks is always high, from 83-92%. Rental prices maintain a stable increase.

Assessing the prospects of industrial real estate in 2025, Ms. Pham Thi Mien, Deputy Director of the Vietnam Institute for Research, assessed that the supply of industrial land in 2025 will continue to grow with improved quality thanks to new industrial parks and expansion projects at existing projects. In the period of 2024-2027, Vietnam is expected to have about 15,200 hectares of industrial land supply, more than 6,000,000 m2 of total warehouse supply.

Along with the increase in supply, demand will also grow positively with the support of foreign investment flows, the China +1 shift wave and the implementation of trade commitments. In particular, demand is mainly concentrated in the manufacturing, logistics and high-tech industries on the basis of selective attraction. Construction and development of industrial park infrastructure are also promoted towards green transformation.

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 when many industrial parks are licensed and started construction across the country. In the first days of 2025 alone, five large industrial parks were approved for investment by the authorities in Hai Phong, Da Nang, Can Tho, Dak Lak and Nghe An with a scale of more than 1,600 hectares. With the prospect of attracting foreign investment capital, industrial land rental prices in key markets in the North and South are expected to increase by 2-5% per quarter.

Mr. Thomas Rooney, Deputy Director of Savills Industrial Real Estate Services, commented that the cooperation agreement between the Vietnamese Government and NVIDIA marks an important turning point, creating an opportunity for Vietnam to become a leading research and development center to create new products (R&D) on AI in Asia. The wave of investment in high-tech projects and research and development centers is driving demand for infrastructure and factories, creating momentum for growth in the industrial real estate market. Vietnam currently has 174 FDI projects in the semiconductor sector with a total registered capital of nearly 11.6 billion USD.

Mr. Nguyen Van Dinh, Chairman of Vars, believes that industrial real estate will continue to be the "star" of the year. Vietnam is also building a development roadmap to rise in the global semiconductor industry value chain, in order to ensure its position in attracting FDI capital. Legal issues related to industrial parks are also specifically regulated, such as Decision 227 of the Prime Minister adjusting the land use quota for industrial parks of 63 provinces and cities, creating more room for land fund approval; Land use planning of many provinces and cities is also being quickly completed. Legal bottlenecks are gradually loosening, creating the premise for new supply to be approved in the next 2 years.

In the context of increasing demand for economic development and attracting foreign investment, the race to expand industrial park supply by investors is expected to continue strongly in the future.

HQ (according to VnExpress)
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Industrial real estate will boom this year