Demand for industrial property rises in the Q1 (Photo: VNA)Hanoi (VNA) – Foreign investors are planning to expand their operations inVietnam this year, creating an opportunity for industrial property development despitethe COVID-19 pandemic, according to experts.
The dautubds.baodautu.vn website quoted Trang Bui, National Headof Commercial Leasing at JLL Vietnam, as saying that Vietnam remainsa promising destination, particularly now that many enterprises have moved theirproduction out of China.
Withdeveloped infrastructure, the industrial real estate market in the north hasbecome attractive to major manufacturers who want to diversify their productionlines beside their existing establishments in China.
AlbertoVettoretti from Dezan Shira & Associates said COVID-19 and the US-Chinatrade war will accelerate the move and expansion from China to Vietnam thanksto Vietnam’s remarkably improved supply chain.
JohnCampbell from Savills Vietnam expressed his belief that foreign investment in theindustrial real estate market will continue to thrive thanks to the EU-Vietnam Free Trade Agreement (EVFTA).
Accordingto JLL Vietnam, despite stagnation in transaction procedures, COVID-19 has hadlittle impact on the industrial real estate market in the north, and thesegment saw increasing demand in the first quarter of 2020.
BacNinh province and the port city of Hai Phong, with large supplies, remain thedriving force of the market in the north.
DespiteCOVID-19, investors in industrial infrastructure have raised their prices withthe hope of long-term investment.
Theaverage price in the first quarter of this year hit 99 USD per square metre per leaseterm, up 6.5 percent from the same period last year. The price of industrialzones with surrounding walls – a favourite choice among small- and medium-sizedenterprises – was at 4-5 USD per square metre per month, and theoccupation rate reached 100 percent.
Meanwhile,the industrial real estate market in the south saw a slight decrease.
Accordingto Le Anh Hieu, Marketing Director of Long Hau JSC, due to global travelrestriction amid COVID-19, the number of investors who visited and exploredindustrial parks had dropped, and many investors are hesitant to makedecisions during this sensitive period.
Accordingto the Economic Zones Management Department under the Ministry of Planning andInvestment, as of the end of March this year, Vietnam had 335 industrial parkswith a combined coverage of 97,800 hectares. Of which, 66,100 hectares includeinfrastructure. As many as 260 industrial parks have been put into operation,accounting for 75.5 percent. The rest, sitting on 29,200 hectares, are underconstruction./.
