According to statistics from the beginning of the year until now, there are about 6 industrial parks across the country started construction. Specifically, on March 14, Industrial Park No. 5 located in 2 districts of Kim Dong and An Thi (Hung Yen province) was officially started. The project has an area of ​​​​nearly 193 hectares, with a total investment of 2,385 billion VND. The infrastructure investor is Yen My Industrial Park Investment JSC.

On April 28, Son Ha Group kicked off the construction of SHI IP Tam Duong industrial park in Vinh Phuc, officially entering the industrial real estate market. The project has a scale of more than 162 hectares, of which the total rental area is more than 116 hectares and 5.59 hectares is a commercial and service area, operating and serving utilities for the industrial park. With a total investment capital of 1,576 billion VND. The project is expected to hand over the ground for the first time in the fourth quarter of 2023 and start operating in the third quarter of 2024.

Also at the end of April, Quang Tri Provincial People’s Committee cooperated with Quang Tri Development Joint Venture Company Limited (QTIP) to organize the kick-off ceremony of Quang Tri Industrial Park project. The project has a scale of nearly 500 hectares, implemented in Dien Sanh town, Hai Truong and Hai Lam communes (Hai Lang district) with a total investment of 2,074 billion VND.

Phase 1 will be deployed on an area of ​​nearly 100 hectares with an investment capital of more than VND 500 billion, implementation schedule from 2021 - 2025. The project is implemented by a joint venture of investors including: Vietnam - Singapore Industrial Parks Joint Venture Company Limited (VSIP), Amata Bien Hoa Urban Joint Stock Company (belonging to Amata Group of Thailand) and Sumitomo Group of Japan.

In Hai Phong, on the afternoon of May 13, Xuan Cau - Lach Huyen Investment Joint Stock Company held the Groundbreaking Ceremony of the Xuan Cau Industrial Park and Non-Tariff Zone Infrastructure Investment Project.

The project has a scale of 752 hectares, including 369 hectares of industrial production area and 173 hectares of warehousing - logistics service area with a total investment of 11,100 billion VND. Project preparation and implementation progress in the period of 2022 - 2033.

In Vinh Phuc, on June 25, Vinh Phuc Infrastructure Development Joint Stock Company kicked off the construction of Song Lo II Industrial Park (Dong Thinh Commune, Song Lo District) with a scale of more than 165 hectares, total investment capital of more than 1,500 billion.

In Dong Nai, on 7/7, Amata Long Thanh Urban Joint Stock Company held the ground-breaking ceremony to build the technical infrastructure of Long Thanh Hi-tech Industrial Park. The project has a total area of ​​410 hectares, adjacent to the Ho Chi Minh City - Long Thanh - Dau Giay highway. Total project investment capital is about 282 million USD.

Two days later, on the morning of July 9, Hanaka Joint Stock Company held a groundbreaking ceremony for Gia Binh Industrial Park 2 in Bac Ninh. The project has a scale of 250 hectares, the total investment capital is expected to be nearly 3,957 billion VND. It is expected that in the fourth quarter of 2023, the investor will hand over the clean ground to secondary investors to lease land for construction investment.

Supply scarcity is one of the worrying problems of the industrial real estate market in Vietnam. Finding the supply of industrial land is becoming a difficult problem for foreign investors when the occupancy rate in industrial parks is always high. The limited occupancy rate in existing industrial parks will affect the leasing of large areas.

According to statistics of Cushman & Wakefield, in the second quarter of 2023, the industrial real estate market in the southern key economic region did not have any new industrial zones recorded. Total supply was stable with 28,000 hectares of land for lease, up 1% over the same period.

In the northern key economic region, the second quarter recorded a new supply of industrial land of about 238 hectares, coming from two industrial zones in Hung Yen.

According to this unit, there will be no new industrial park supply in the same southern key region recorded in the second half of 2023, but in 2024 will welcome about 1,800 hectares of new industrial land, concentrated in Binh Duong, Dong Nai and Long An provinces. The future supply of industrial land will increase significantly, with an estimated 5,254 ha in 2026, after the local authorities complete the adjustment of the master plan and development orientation of the province.

In the newly released report, VNDirect Securities said that the industrial real estate market will experience a difficult time in the implementation of new projects, leading to a shortage of supply until the end of 2023.

The analysis team believes that the southern market will go through a difficult period to deploy new projects in 2023. After that, the new supply for the period 2024 - 2027 is also quite limited, about 1,388 hectares.

For the Northern market, although there are many projects awaiting approval, the shortage of new supply is expected to last at least until the end of 2023. After that, about 3,757 hectares of industrial land is expected to be put into operation in the period 2024 - 2026 with the largest supply coming from Hai Phong, Vinh Phuc and Bac Ninh.

VNDirect said that the positive factors supporting the industrial real estate industry are fading because challenges are gradually appearing. For example, the market will witness a scarcity of new supply in 2023 when the approval procedure is delayed due to problems in legal procedures; Vietnam’s competitiveness in attracting FDI is gradually weakening compared to other countries in the region.

In this context, according to the analysis team, investors are gradually turning their attention to the secondary market with advantages such as competitive prices. While the tier 1 market has a rather limited available land fund, the tier 2 market has an abundant available land fund, leading to a slower increase in rental prices in the tier 2 market than in the tier 1 market at least in the next 3 years.

In addition, the available land bank in the secondary market offers more options for tenants, especially when traffic connectivity is increasingly improved.

In addition, the connectivity between tier-2 markets and tier-1 markets has been improved thanks to an upgraded infrastructure network and more and more large investment projects flocking to tier-2 markets.