Dong Mai Industrial Park in Quang Ninh province. (Photo: VNA) Energy price uncertainty due to geopolitical issues and concerns on economicgrowth, China’s persistence in pursuing a zero COVID-19 policy coupled with aglobal trade slowdown have been fueling the disruption and diversification,they added.
In Vietnam, industrial real estate leasing has seen a hike in demand and rentalprices, especially for logistics and warehousing.
According to CBRE Vietnam, a commercial real estate services and investmentfirm, in the third quarter, its industrial leasing enquiries are improving inboth quantity and sizes. Land acquisition enjoyed 10% year-on-year growth sofar this year and 7% growth for ready-built factories/warehouses.
The average size required by tenants of all CBRE’s enquiries was 9.4 ha in thefirst half of 2022 compared to 9.2 ha last year for land and 6,700 sq.m in thefirst half compared with 6,100 sq.m in 2021 for ready-builtfactories/warehouses.
Vietnam continues to be an appealing destination for industrial real estateinvestors, according to global real estate services firm Cushman and Wakefield.
It attributed this to the country’s stable growth rate, an export-orientedeconomy, a rise in free trade agreements, a young labour force, investmentincentives and strategic location.
With favourable government incentives, competitive labour costs, a stablepolitical environment, a positive economic outlook and free trade agreements,the Southeast Asian country has become popular for foreign investors moving outof China.
To seize this opportunity, the north-eastern province of Quang Ninh has emergedas a vibrant industrial property market as the province is transforming itsrural tourism-based economy and industrialising to attract foreign investment.
Speaking at a recent conference to promote investment in Quang Ninh, Chau ThanhHung, deputy head of the Quang Ninh Economic Zone Authority, said the provincehas a strategic geographical location as a gateway connecting China andSoutheast Asia.
It has extensive transport infrastructure with an international airport,seaports, the Mong Cai international border gate and modern facilities.
It is home to major economic zones such as Quang Yen, Van Don and Mong Cai and15 industrial parks (IPs).
Hung said the province was developing seaport-IP complexes starting with the BacTien Phong Industrial Zone and Nam Tien Phong Industrial Zone in the Quang YenCoastal Economic Zone.
These port-IP eco-systems would help reduce logistics costs for manufacturers.
It just issued investment licences to Indochina Kajima Development for its 23.9million USD Core5 Quang Ninh ready-built factory project.
As of the end of June, it had 150 foreign direct investment (FDI) projectsworth 8.26 billion USD by investors from 20 countries and territories.
Vietnam lured more than 14 billion USD of FDI in the first half, of which the Northernregion attracted 6.7 billion USD, slightly higher than the Southern region with6.5 billion USD.
The Northern region currently has about 63,500 ha of planned land for 238industrial zones and clusters which are operational or in the process of siteclearance and construction, according to a report by the Ministry of Industryand Trade./.
VNA
