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Mr. Peter Ryder, General Director of Indochina Capital, said that the first Grade A factory project under Core5 brand name will be started within the next 3 weeks at Deep C Hai Phong 2 industrial park. With a total area nearly 90,000 m2 for lease, the project is expected to be handed over from the first quarter of 2023 

This is a product that marks the expansion of the "big man" in the resort, residential and retail real estate industry to industrial real estate. Through a joint venture with Kajima Corporation (Japan), the enterprise brought the American industrial real estate brand Core5 to Vietnam. This move shows the attractiveness of the Vietnamese market to international investors.

New supply flourishes

According to the leader of Indochina Capital, in the coming time, the company will continue to launch 6 other projects in the North and 1 project in the South of Vietnam.

"When completed, these projects will provide the market with nearly 700,000 m2 of factory and warehouse supply, with a total investment cost of nearly 450 million USD . This is part of Indochina Kajima’s long-term vision in the future. investing 1 billion USD in industrial real estate in the next 5-7 years," emphasized Mr. Peter Ryder.

 

Supply of industrial real estate is gradually recovering. Photo: Quynh Danh.

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Supply of industrial real estate is gradually recovering. Photo: Quynh Danh.

Meanwhile, SLP has just started a new warehouse project in Bac Ninh at the end of June. It is expected that by the second quarter of 2023, SLP Park Nam Son Hap Linh will supply the market with more than 90,000 m2 of Grade A warehouse. At that time, this enterprise will own 6 logistics facility projects in Vietnam with a total land area of ​​up to 860,000 m2.

Not only single projects, the market in the first 6 months of the year also continuously received a large amount of new supply from industrial parks (IZs) across the two regions, typically VSIP 3 - VSIP’s 11th IP in Vietnam. in Binh Duong province with an area of ​​more than 1,000 hectares or Deep C Hai Phong 2 phase 1 with a scale of 10.6 hectares...

At the same time, JD Future Explore V Limited started construction of JD Property Hai Phong 1 logistics zone in the non-tariff zone and Nam Dinh Vu Industrial Park on a land area of ​​97,000 m2. Most recently, BW Phu Nghia’s first project in Hanoi built according to LEED green standards, BW Phu Nghia, was also started in June.

CBRE’s data shows that the five northern key cities including Hanoi, Hai Phong, Bac Ninh, Hung Yen and Hai Duong have now formed nearly 15,000 hectares of industrial land, while the area of ​​Ho Chi Minh City, Dong Nai, Binh Duong and Long An have more than 30,000 hectares.

In the next 3 years, this unit forecasts the industrial land supply will increase by more than 14,000 hectares for both markets. Meanwhile, the total accumulated warehouse space for lease by 2025 may exceed 2.6 million m2 in the North and 5 million m2 in the South.

Rent continues to increase

Pham Ngoc Thien Thanh, Head of Market Research and Development Consulting at CBRE Vietnam, said that with the wave of moving production facilities around the world to Vietnam and new investment, as well as startup Back to infrastructure projects throughout the locality, the industrial real estate market is receiving a positive recovery. From the beginning of the year until now, the number of requests for industrial land and warehouses to CBRE increased by 10% and 7% respectively over the same period last year.

Accordingly, the occupancy rate in tier-1 markets in the North (including Hanoi, Bac Ninh, Hung Yen, Hai Duong) reaches 80%, while in the South (including Ho Chi Minh City, Binh Duong, Dong Nai) , Long An) reached 90% in the first half of the year. As a result, land rents in some typical industrial parks have increased by 20-26% over the same period last year.

"Some industrial parks that are about to come into operation in the second half of 2022 and early 2023 have achieved a positive early rental commitment rate, at the threshold of 40-100% in the first stage of deployment. Industrial land rental rates will also increase positively about 5-10% in the next 3 years in the northern market and 8-13% in the south," forecasted Ms. Pham Ngoc Thien Thanh.

According to an expert at CBRE, for every billion USD in revenue from e-commerce, the market will need nearly 93,000 m2 more area for logistics. Vietnam is becoming the second largest digital economy in Southeast Asia, with an estimated need of more than 2 million square meters of space dedicated to e-commerce by 2025 across the country. This will be one of the big growth drivers for Vietnam’s industrial real estate in the coming years.

From the investor’s perspective, Mr. Keisuke Koshijima, Representative Director and Executive Vice President of Kajima Corporation, also recognized that the manufacturing industry combined with the rapidly growing e-commerce field will create favorable conditions for the development of the market. for businesses to expand and develop in Vietnam.

"From a global perspective, Vietnam is one of the fastest growing economies in the world and is further underpinned by factors such as a large, young and growing population. The key to development. This economy is manufacturing which accounts for more than one-third of GDP and will continue to be attractive thanks to the supply chain shift Apple recently moved iPad production to Vietnam, we think this trend will happening with other tech giants," commented Mr. Keisuke Koshijima.