Industrial real estate maintains the "top" position throughout 2023, however, compared to other countries in the region, industrial park real estate rental prices in Vietnam are still at a competitive level...
Vietnam's real estate market report in 2023 and forecast for 2024 of the Vietnam Real Estate Brokers Association (VARS) said that the whole country has 412 established industrial parks with a total area of 217,5 thousand hectares, 293 industrial parks have come into operation with a total natural land area of about 92,2 thousand hectares, an industrial land area of about 63 thousand hectares and 119 industrial parks are under construction with a total land area of about 37,5 thousand hectares. Natural land area is about 24,7 thousand hectares, industrial land area is about XNUMX thousand hectares.
Currently, the occupancy rate of operating industrial parks is over 70%. Of which, the Northern key provinces reached 80% and the Southern key provinces reached 90%. Rents increased about 20% compared to the previous period, with the Northern region witnessing the strongest price increase.
In the North, the average rental price is 135 USD/m2/rental cycle, an increase of 33% compared to 2022. Bac Ninh recorded the largest price increase, up 40% to 160 USD/m2/rental cycle due to adding new quality supply sources along with the attention of high-tech enterprises. Hai Phong increased 30% to 125 USD/m2/rental period.
In the South, the average rental price is 188 USD/m2/rental period, an increase of 15% compared to 2022. Ho Chi Minh City and Binh Duong markets did not record price fluctuations because available industrial parks have been filled with long-term rental cycles. Long An has an average rental price increase of about 12%, ranging from 140 - 300 USD/m2/rental period. The average rental price in Dong Nai increased by 20% over the same period, ranging from 120 - 240 USD/m2, while in Ba Ria - Vung Tau, the average rental price was 130 USD/m2/rental period, an increase of 30% according to the same period. year.
Industrial parks and economic zones have attracted over 10.400 domestic investment projects and over 11.200 valid FDI projects, with total registered investment capital of over 2,54 million billion VND and 231 billion USD, respectively. FDI capital in industrial parks and economic zones accounts for about 35 - 40% of the total registered FDI capital increase of the country in recent years.
The proportion of investment capital implemented in industrial parks and economic zones in the total investment capital of the whole society is approximately 30%. Promote local infrastructure and economy. Create a premise for the development of many supporting industries, creating opportunities to develop residential real estate and rental housing.
In fact, rising rents, higher than other countries in the region, risks related to the global minimum tax law along with institutional and policy "bottlenecks" can be obstacles, reducing advantages. compete in attracting investors to Vietnam.
However, Vietnam still has many motivations to help the industrial real estate market promise to prosper in 2024. Because, FDI capital flows are still positive with the advantage of preferential tax policies. Transport infrastructure is increasingly synchronous and modern with a commitment to top infrastructure investment in the region. Industrial park support services are increasingly improved.
Many new industrial park investment projects have had their investment policies approved and have begun implementing the next phases. Industrial park real estate supply is witnessing growth in both the North and the South. The demand for Industrial real estate is still very large, especially the need for multi-use multi-storey warehouses and ready-built factories.
According to the planning of provinces and cities across the country, by 2030, Vietnam will have 558 Industrial Parks with a total land area of 205.800 hectares and 1.500 industrial clusters, with a total area of about 50.000 hectares. It is forecast that by 2050, the land area of industrial parks and clusters across the country will be at 300.000 - 350.000 hectares, not including the area of nearly 50 economic zones.
The general goal of our country's industrialization and modernization by 2030 is to fulfill the criteria of an industrial country, becoming a developing country with modern industry. Resolution of the XNUMXth Congress clearly states: "Continue to promote industrialization and modernization based on the foundation of science, technology, and innovation."
Industrial real estate plays an important role in supporting the production and distribution of goods. It provides space and infrastructure for industrial enterprises, contributing to economic growth and social development. Shows that the industrial real estate segment has been and will grow strongly in the coming time.
In response to the country's development needs and the aspirations of a large community of businesses, organizations, and individuals doing business, production, and work related to economic zones, industrial parks, and industrial clusters, , export processing zones, high-tech zones... Vietnam Real Estate Association (VNREA) has established the Vietnam Industrial Real Estate Association (VIREA).
Vietnam Industrial Real Estate Association is a social and professional organization of businesses investing in infrastructure development of industrial parks and industrial clusters and businesses investing in production activities, Trading in other industrial real estate products inside and outside industrial parks, industrial clusters, logistics and supporting financial institutions related to industrial real estate...
VIREA is a bridge between the State and member businesses. Update and provide information on policy and legal mechanisms related to the operations of export processing zones, industrial zones, economic zones, high-tech zones, and industrial clusters to member businesses.
This is also a forum for enterprises in export processing zones, industrial parks, economic zones, high-tech zones, industrial clusters and other industrial real estate investment and business enterprises to share and exchange business. Experience in improving investment, production and business efficiency, participate in commenting on law projects, decrees and circulars related to mechanisms, policies and propose solutions to effectively develop real estate products. industrial real estate.
Upcoming, on January 18, 1, the Vietnam Industrial Real Estate Association Inter-Branch Congress - Term I (2024 - 2024) will take place at Vinpearl Landmark 2029, Autograp Collection, Marriott Hotels. Address No. 81A Dien Bien Phu, Binh Thanh District, Ho Chi Minh City.
With the participation of more than 300 delegates, including leaders of central and local agencies, representatives of management boards of economic zones, industrial parks, industrial clusters, export processing zones, high-tech zones... businesses, investors in infrastructure development of industrial zones and clusters, domestic and international experts related to the field of industrial real estate.
The Congress is not only an event to officially launch VIREA but also an opportunity for investors, experts, and leaders of businesses developing industrial park infrastructure to meet, connect, share information, and exchange information. exchange, comment and propose creative solutions to promote the development of the industrial real estate market.
Source: Merchant Magazine