Industrial real estate should recover in the remaining months

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Dong Mai Industrial Park in Quang Ninh Province. Quang Ninh has become a vibrant industrial property market as the province transforms its economy based on rural tourism and industrializes to attract foreign investment. (Photo: VNA)

Energy price uncertainty due to geopolitical issues and concerns over economic growth, China’s persistence in pursuing a zero COVID-19 policy coupled with a slowdown in global trade have fueled disruptions and diversification, have they added.

In Vietnam, industrial real estate leasing saw an increase in demand and rental prices, particularly for logistics and warehousing.

According to CBRE Vietnam, a commercial real estate and investment services company, in the third quarter, its industrial rental applications are improving in quantity and size. Land acquisition has seen a 10% year-over-year growth so far this year and a 7% growth for ready-to-use factories/warehouses.

The average size required by tenants across all CBRE surveys was 9.4 ha in the first half of 2022 compared to 9.2 ha last year for land and 6,700 m² in the first half compared to 6,100 m² in 2021 for land. turnkey factories/warehouses.

Vietnam continues to be an attractive destination for industrial property investors, according to global real estate services firm Cushman and Wakefield.

He attributed this to the country’s stable growth rate, export-oriented economy, increased free trade agreements, young workforce, investment incentives and location. strategic.

With favorable government incentives, competitive labor costs, stable political environment, positive economic outlook and free trade agreements, the Southeast Asian country has become popular with foreign investors who leave China.

To seize this opportunity, the northeastern province of Quang Ninh has become a vibrant market for industrial property as the province transforms its economy based on rural tourism and industrializes to attract foreign investment.

Speaking at a recent conference aimed at promoting investment in Quang Ninh, Chau Thanh Hung, deputy director of the Quang Ninh Economic Zone Authority, said the province has a strategic geographical location as a gateway gateway linking China and Southeast Asia.

It has an extensive transport infrastructure with an international airport, seaports, Mong Cai international border gate and modern facilities.

It is home to major economic zones such as Quang Yen, Van Don and Mong Cai and 15 industrial parks (IP).

Hung said the province is developing IP port complexes starting with Bac Tien Phong Industrial Zone and Nam Tien Phong Industrial Zone in the Quang Yen Coastal Economic Zone.

These port-IP ecosystems would help reduce the logistics costs of manufacturers.

It has just issued investment licenses to Indochina Kajima Development for its USD 23.9 million Core5 Quang Ninh ready-to-use factory project.

As of the end of June, it had 150 foreign direct investment (FDI) projects worth $8.26 billion by investors from 20 countries and territories.

Vietnam attracted more than USD 14 billion in FDI in the first half, of which the North region attracted USD 6.7 billion, slightly more than the South region with USD 6.5 billion.

The North region currently has around 63,500 ha of land planned for 238 industrial zones and clusters that are operational or under clearing and construction, according to a report by the Ministry of Industry and Trade.

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