Illustrative image (Source: VNA)Hanoi (VNA) - Foreign investment has continued to be poured into Vietnamrecently, creating a driving force for industrial property development in 2019,said insiders.
Accordingto Troy Griffiths - Deputy Managing Director of Savills Vietnam, a strongincrease in foreign direct investment,along with a shift in the value chain,has opened up a bright future for the industrial property market in Vietnam.
The industrial real estate market is showing positive signs as the number offoreign-invested enterprises in Vietnam is increasing, resulting in rising demandfor specific workshops to meet technical requirements and maximise utility.
Therefore,in recent years, the trend of renting ready-built factories and buildingworkshops based on customer requirements (Built-to-suit) has widelydeveloped in many localities throughout the country.
Built-to-suit workshops are always designed and built flexibly by investors inaccordance with requirements of enterprises, meeting standards of eachmanufacturing industry.
The ready-built factory market in Vietnam is becoming very bustling, satisfyingthe diverse leasing demand of customers.
Inaddition, the demand for warehouses also increases, with the logistics segmentseeing positive changes.
The logistics market is said to be one of the most important factors to furtherdevelop industrial real estate in Vietnam.
Experts said that the logistics market will develop "prominently" inthe next 5-10 years.
According to Savills Vietnam, international-standard management and operationcompanies are expanding their position and influence in Vietnam’s logistics industry by providing additionalservices such as supervising and managing inventory, packaging and labelling.
International outsourced logistics service providers are investing more inVietnam, and this will help promote the development of more modern facilities,they noted.
The Vietnam National Real Estate Association said real estate is still the bestinvestment channel in Vietnam at present.
By2018, Vietnam had 80,000 hectares of land for industrial zone development,mostly in the northern, central and southern key economic regions.
According to Vietnam Jones Lang Lasalle Company (JLL Vietnam), Vietnam'sindustrial real estate is strongly attractive to foreign investors who want toshift their production from other countries to Vietnam.The reason behind this islow production cost, just under 1 USD per hour, the lowest in ASEAN and even lower than China.
Allof these advantages are creating momentum for Vietnam's industrial real estate marketto experience a booming development in the time to come.-VNA
VNA
