The industrial real estate market continuously welcomes a series of large “eagles” to set up factories in Vietnam such as Foxconn, LG, Lotte, Hyosung, and CapitaLand.

According to the Vietnam real estate market research report in the second quarter of 2024, the industrial real estate market in three key markets of Ho Chi Minh City, Da Nang and Hanoi did not record fluctuations in rental prices and occupancy rates. full and new supply. Outstanding developments in the quarter revolved around investment activities and implementation of FDI projects in industrial parks.

In Hanoi, infrastructure rental prices in industrial parks and average occupancy rates remain stable, at 214 USD/m2/term and 86%. Due to high rental prices in Hanoi and low vacancy, while inter-provincial connection infrastructure is complete, neighboring provinces such as Bac Ninh, Bac Giang, Hung Yen and Vinh Phuc recorded rental growth. quarterly, from 5-7% depending on the region.

In the second quarter, Bac Ninh maintained the title of northern industrial highlight thanks to many large projects, such as Foxconn Group’s 14.26ha circuit board factory worth 383 million USD in Nam Son – Hap Linh Industrial Park, or Amkor’s semiconductor equipment and materials factory in Yen Phong II-C Industrial Park with an additional capital of 1.07 billion USD.

The 600-hectare VSIP Lang Son Industrial Park and the 190-hectare VSIP Ha Tinh Industrial Park have also just started construction. Hanoi also approved the investment policy of Dong Anh Industrial Park and Phung Hiep Industrial Park with a total area of ​​nearly 475 hectares in the last quarter.

In Ho Chi Minh City, for many years without new supply, the industrial real estate market seems to have reached the average rental price of 230 USD/m2/term and the average occupancy rate in industrial parks reached 90 %. The city is overcoming the shortage of land fund by accelerating the removal of legal obstacles for projects in Thu Duc, Cu Chi and Binh Chanh cities, and making efforts to renew the industrial land fund, targeting technology industries. high to increase investment capital and production value per m2 of land.

In early May, Korean corporation Hyosung announced that it wanted to invest in a large-scale data center in Ho Chi Minh City Hi-Tech Park. The second quarter also recorded corporations from Korea and Singapore announcing their next investment plans in manufacturing factories in Vietnam such as LG, Lotte, Hyosung, and CapitaLand.

Across the country, in the first 6 months of the year, there were 10 new industrial park projects approved with a total area of ​​2,804 hectares, promising abundant supply in the long term.

Mr. Vu Minh Chi – Senior Manager, Industrial Services at Avison Young Vietnam commented: “The industrial real estate segment is witnessing competition between the secondary market and the primary market, specifically such as: between Quang Ninh, Thai Binh, Vinh Phuc with Bac Ninh, Bac Giang; or Tay Ninh, Binh Phuoc, Ba Ria – Vung Tau with Binh Duong, Dong Nai, Long An The competitive advantage of secondary markets is area The amount of industrial land for lease is still large with a low occupancy rate and reasonable rental prices.

Second is the trend of developing industrial parks that meet energy efficiency and environmentally friendly standards to attract FDI capital flows in high-tech industries. Vietnam’s draft Investment Support Fund shows efforts to improve investment incentive policies, increase competition and attractiveness, and promote development motivation for Vietnam’s industrial real estate market in the long term.”