Room for industrial real estate development remains high due to short supply

The industrial real estate sector has good prospects in 2023 due to short supply, a shift in the supply chain to Vietnam and its favourable investment policies, experts said.

Room for industrial real estate development remains high due to short supply hinh anh 1

Illustrative image. (Photo: VNA)

The industrial real estate sector has good prospects in 2023 due to short supply, a shift in the supply chain to Vietnam and its favourable investment policies, experts said.

The Southeast Asian nation has witnessed a wave of foreign manufacturers shifting production to Vietnam's shores over the past year, which is expected to rise.

The Danish toy production company LEGO Group poured 1 billion USD to build a manufacturing plant in the southern province of Binh Duong last year. The project, which has a total investment of more than 1 billion USD, is expected to become operational by 2024, creating about 4,000 jobs.

The Republic of Korea’s electronics giant Samsung has announced plans to increase its investment in Vietnam to 20 billion USD, focusing on artificial intelligence, big data and other areas.

LG Corporation is planning to invest 4 billion USD in Vietnam with the goal of making the country a future smartphone manufacturing hub.

According to experts, investment in industrial zones (IZ) in Vietnam is attractive for several reasons. Firstly, the Vietnamese dong has undergone a lower depreciation than the currencies in the region such as Indonesia, Thailand, India and Malaysia.

Vietnamese investment policies are also a factor. To attract more investors, Vietnam has offered many incentives including corporate income tax exemptions for the first four years of operation, reducing corporate income tax by a half in the next five years and other preferential policies.

The rental price for industrial land in Vietnam, which is about 30-36% lower than that in Indonesia and Thailand, is another advantage, they said.

A survey by Colliers, a leading real estate professional services and investment management company, showed that the average rent for land in Indonesia’s industrial parks such as Tangerang, Bogor-Sukabumi and Bekasi is 164 USD per square metre, 36% higher than that in industrial hubs in Vietnam like Binh Duong, Dong Nai, Bac Ninh and Hai Phong.

Room for industrial real estate development remains high due to short supply hinh anh 2

Phu My 1 and Phu My 2 expansion industrial zones are located near Cai Mep Port in Ba Ria-Vung Tau province. (Photo: IDICO)

The rental price for industrial land is expected to rise when new industrial parks are put into operation. However, insiders said that there will be a scarcity in the supply of this kind of real estate this year.

They attributed this to difficulties in site clearance and legal obstacles in converting rubber plantation land to industrial park land in many localities.

The strict control of agricultural land conversion in line with the Government’s Resolution No. 115/NQ-CP is also a problem. This is an important part of the national land use plan for the 2021-2025 period./.
Source: VNS
en.vietnamplus.vn

Related News

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Industrial Growth Projections for 2025

Industrial Growth Projections for 2025

VCN - The Ministry of Industry and Trade has set ambitious goals for 2025, targeting an industrial production index growth of approximately 9–10% compared to 2024. Additionally, merchandise exports are expected to rise by around 12% relative to the previous year.
Vietnam, Korea Customs sign AEO MRA

Vietnam, Korea Customs sign AEO MRA

VCN- The Director General of the General Department of Vietnam Customs (GDVC), Mr Nguyen Van Tho, and the Commissioner of Korea Customs Service (KCS), Mr Ko Kwang Hyo, signed the Authorized Economic Operator Mutual Recognition Agreement (AEO MRA) on the afternoon of December 24, at the GDVC’s headquarters.
Prioritizing semiconductor workforce training

Prioritizing semiconductor workforce training

VCN - Vietnam is well-positioned to participate deeply in the global semiconductor industry. Experts believe that developing a skilled workforce in microchips and semiconductors should be a long-term priority to effectively capitalize on this opportunity.

Latest News

15th National Assembly concludes ninth extraordinary session

15th National Assembly concludes ninth extraordinary session

NA Chairman Trần Thanh Mẫn highlighted this session as a significant milestone in legislative development, playing a crucial role in streamlining the political system.
Party chief requests priority for sci-tech development, digital transformation

Party chief requests priority for sci-tech development, digital transformation

The Party chief asked for prompt amendments to the Law on Science and Technology, followed by revisions to other laws to ensure consistency and alignment with practical requirements.
Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN – Vietnam’s economy is forecast to grow by 6.7% in 2025, Standard Chartered Bank reported.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.

More News

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.
Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
General Secretary urges immediate return to work after Tết

General Secretary urges immediate return to work after Tết

Party General Secretary Tô Lâm praised efforts to ensure a well-organised holiday, but stressed the need for authorities and businesses to return to work promptly. He warned against extended celebrations and called for full focus on meeting February and first-quarter deadlines.
Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

PM Phạm Minh Chính expressed his hope for continued support from the Party Central Committee, its Politburo and Secretariat, current and former leaders, the National Asembly, and the Việt Nam Fatherland Front for the Government to fulfil its tasks, creating momentum for the whole country to make development breakthrough and enter the era of the nation’s rise.
Việt Nam’s manufacturing PMI slips into contraction in January

Việt Nam’s manufacturing PMI slips into contraction in January

Business conditions in the Vietnamese manufacturing sector weakened in the first month of 2025 with drops in both output and new orders.
Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

The past 95 years have formed a glorious and pride-worthy period for the Vietnamese people as they have gradually eliminated poverty and backwardness, steadily moving towards a wealthier and happier future.
Read More

Your care

Latest Most read
15th National Assembly concludes ninth extraordinary session

15th National Assembly concludes ninth extraordinary session

NA Chairman Trần Thanh Mẫn highlighted this session as a significant milestone in legislative development, playing a crucial role in streamlining the political system.
Party chief requests priority for sci-tech development, digital transformation

Party chief requests priority for sci-tech development, digital transformation

The Party chief asked for prompt amendments to the Law on Science and Technology, followed by revisions to other laws to ensure consistency and alignment with practical requirements.
Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN - Standard Chartered's report also forecasts Vietnam's economic growth at 7.5% in the first half of the year and at 6.1% in the second half of the year compared to the same period last year.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.
Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Mobile Version