In Vietnam, investment attraction from domestic and foreign enterprises in industrial parks is always high. As a result, the demand for industrial land is also very large.

Besides businesses renting land to build factories, the segment of ready-built factories for rent also attracts customers. Especially in the Southern key economic area.

High demand

The factory rental market is differentiated. Well-invested, high-quality factories in industrial parks are one of the priority choices of businesses. Meanwhile, individual factories outside the industrial park are relatively quiet.

According to information from market research unit CBRE Vietnam shows that. In the first 3 quarters of the year, the Southern level 1 market has leased nearly 420.000 square meters of warehouses and 543 square meters of factories. Nearly twice as high as the same period last year. Rental prices for ready-built factories in the Southern market remain stable.

CBRE VN forecasts that in the next 3 years, industrial land rental prices are expected to increase by 3-7% per year in the South. Meanwhile, rental prices of ready-built warehouses and factories are forecast to increase by 1-4% per year. And the ready-built factory segment will have a higher price increase rate in the next 3 years.

With high demand for this market, domestic and foreign corporations and enterprises are interested in investing in ready-built factories for rent.

In addition, most of the individual factories outside the industrial park are not legally guaranteed. Built on agricultural land, wrong area, lack of infrastructure so it is difficult to attract investment. Furthermore, it is also necessary to pay attention to the regulations of the Convention on safety. Especially when it comes to fire and explosion, which are strictly controlled, this segment is gradually losing its appeal.

On the contrary, ready-built factories for rent in industrial parks ensure legal factors. Ensure compliance with land, fire prevention and environmental standards. In accordance with planning and with full industrial infrastructure. Thereby contributing to attracting the attention of businesses.

 

OSSIF – Ready-built factory for rent in Tan Kim Industrial Park. Ideal destination for business

Possessing an ideal location on the frontage of National Highway 50, in Tan Kim Industrial Park with a scale of 104.1 hectares. With diverse areas and modern infrastructure. The factory is designed to be airy and has limited columns to optimize production and storage area. Fully equipped with electrical system, automatic fire protection, fire truck, ventilation, lighting, insulation. Full drainage system and spacious parking area.

In addition, OSSIF also provides customer services such as personnel recruitment support. Support meeting room, security team, monitoring team, 24/7 on-duty staff. Businesses can quickly stabilize production without having to worry about anything else.

With strategic coordinates connecting Ho Chi Minh City and 12 provinces of the Southwest. Ossif is located next to Can Giuoc inland waterway port. And just over 23km from Long An International Port. Not only that, Ossif is also approaching a series of projects on Ring Road 3 and 4; CT Ben Luc – Long Thanh; parallel route of National Highway 50. With expanded provincial roads, Can Giuoc Bridge… Not only convenient connection, easy trade to neighboring, domestic and international markets. But also helps businesses save time. As well as the cost of transporting goods and production materials.

OSSIF will be the right choice for domestic and foreign enterprises that want to expand production, storage and business scale.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF. Iif you are planning to rent a warehouse and ready-built factory. We commit to providing reputable, quality services that best suit your needs and finances. – Hotline: 0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

For more about industrial clusters, click here

3 new bridges connecting the main road of Ho Chi Minh City – Long An – Tien Giang with amount of investment about 4,797 billion VND. Crossing the Vam Co Dong River, Vam Co Tay River and Can Giuoc River, with the starting point on provincial road 827E.

Specifically, the Prime Minister approved investment in 3 bridges including: Can Giuoc, Vam Co Dong, and Vam Co Tay bridges. Connecting 3 provinces and cities: Ho Chi Minh City – Long An – Tien Giang with amount of investment about 4,797 billion VND. Of which, Korean ODA loan is about 4,060 billion VND, and counterpart capital is about 736 billion VND. All three bridges are expected to begin construction in 2026.

Meanwhile, the approach roads at both ends of these three bridges are separated into a separate project. Long An is currently carrying out the inventory and marking. And in January 2025, the land clearance will begin.

The total length of the project is about 11km with a scale of 4 lanes. The investment level is about 1,433 billion VND. The Provincial Traffic Project Management Board is completing the documents. It is expected that the project will be submitted to the Ministry of Transport for appraisal in November 2024. July 2025, contractor selection will be organized and construction will start in September 2025.

The cost of site clearance and access roads to the 3 bridges is about 1,607 billion VND. Currently, the project is being submitted to the People’s Committee for approval of the cost of land acquisition and clearance and access roads to 3 bridges, the cost is about 1,607 billion VND. And from January 2025, compensation payments, land clearance, and resettlement support for people will be carried out.

3 bridges contribute to forming the road connecting Ho Chi Minh City, Long An, Tien Giang

This investment contributes to connecting the International Port to the Southwestern Provinces. Strengthening the connection between the Mekong Delta provinces and Ho Chi Minh City, reducing traffic pressure on National Highway 1, National Highway 50, National Highway N2. Maximize the growing demand for transporting goods and materials in the region.

When the connecting road is completed, it will stimulate and develop Long An’s key economic industry. Such as farming, processing, exporting, building infrastructure, attracting investment capital. Promote the development of industrial parks, warehouses and factories for rent, and urban areas along the route.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF. Iif you are planning to rent a warehouse and ready-built factory. We commit to providing reputable, quality services that best suit your needs and finances. – Hotline: 0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

For more about industrial clusters, click here

Located in the Mekong Delta, adjacent to Ho Chi Minh City and has a large-scale port system. Long An identifies logistics as an important economic sector alongside industrial development.

According to economic experts, Long An has many advantages to develop logistics.

First, transport infrastructure is continuously invested in and expanded. Many key projects of regional connectivity are being implemented. Such as Tan An City Belt Road, Provincial Road 830, Provincial Road 830E, Ho Chi Minh City Belt Road 3, Ben Luc – Long Thanh Expressway…

In the coming time, the province will expand more than 50 additional roads and build 29 new provincial roads. Among these, many roads play a driving role in socio-economic development. Improve cargo transshipment capacity, connecting key areas such as parallel road QL62. And My Quy Tay – Luong Hoa – Binh Chanh dynamic axis, Tan Tap – Long Hau road…

Regarding waterways, Long An has two major rivers: Vam Co Dong and Vam Co Tay. Connecting the Eastern and Southwestern regions to the sea. In particular, the province has Long An International Port, which is gradually completing its infrastructure and service system to serve import and export for the Mekong Delta region.

According to the planning until 2030, vision 2050. Long An considers logistics an important economic sector. The province’s goal is to become a center for goods transshipment and warehousing. Connecting provinces in the Mekong Delta with Ho Chi Minh City, the Southeast region and the Cambodian market.

In which, Long An International Port Project plays an important role in industry. Contribute to reducing pressure on port clusters in Ho Chi Minh City. And it also helps businesses reduce transportation costs through convenient connections and many preferential policies.

Expert Reviews

Dr. Dinh The Hien – economic expert commented, regarding the infrastructure development plan in the coming time. Long An can completely become a locality playing an important role in the Southeast and Southwest regions. In the logistics orientation, the province plans to plan 2 inland ports in Ben Luc and Thu Thua. Along with 10 logistics centers in the districts.

According to Ms. Giang Huynh – Deputy Director of Research and S22M Department (Savills Vietnam). There are 3 reasons to believe in the development of Long An.

• First of all, the province’s geographical location is a special advantage. It is convenient for economic development, trade as well as logistics.
• Secondly, the locality has a large area (4,492 km2) and a lot of vacant land. This is a plus point of Long An market in the eyes of investors.
• Thirdly, Long An has many opportunities to develop the industrial real estate and logistics market.

Ms. Trang Bui – General Director of Cushman & Wakefield Vietnam also commented. In recent times, Long An has made great efforts to become a dynamic and effective economic development center. It is an important gateway connecting the Mekong Delta with Ho Chi Minh City and the Southeast provinces.

Besides, Long An is focusing on urban development. Investing in urban upgrading and development will create better infrastructure. Attract investors and improve quality of life for people.

According to experts, despite facing many challenges, such as in building infrastructure, creating a favorable business environment… But Long An also has many opportunities, ready to break through in the future.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF. Iif you are planning to rent a warehouse and ready-built factory. We commit to providing reputable, quality services that best suit your needs and finances. – Hotline: 0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

For more about industrial clusters, click here

Currently, real estate segments from commercial housing to industrial real estate are showing signs of positive growth. Many new projects are being implemented, with expectations that the market will “revive” by the end of 2024.

The report shows that the Vietnamese real estate market in the third quarter of 2024 has shown a positive recovery after the difficult period. Thanks to the stability of the economy and supportive policies from the Government.

The segments: housing, commercial, industrial real estate are currently showing signs of growth with many new projects being implemented.

Mr. Le Dinh Chung – member of VARS Market Research Working Group, General Director of SGO Homes commented. Although the Vietnamese real estate market is gradually recovering from a difficult period, each segment still faces its own challenges. According to Mr. Chung, the current market is led by the apartment segment. With prices constantly increasing on both primary and secondary markets.

The market has also shown signs of “heating up”. Through land speculation, pushing up housing prices and non-transparent real estate transactions.

“Heat” of the industrial real estate segment

The industrial real estate segment continues to maintain its “heat” with a sharp increase in the number of new projects, along with increasingly abundant FDI capital.

The occupancy rate of industrial parks already in operation remains at a stable increase (about 75%). The key provinces in the North and South are 82% and 92% respectively.

However, the occupancy rate at established industrial parks is still difficult to increase rapidly due to the waiting between supply and demand. Investors only deploy infrastructure when they have tenants, while businesses only want to invest in projects that already have infrastructure.

The big challenge of this segment

The big challenge of this segment also comes from the requirement to “green” industrial parks. Aiming to achieve the high standards of investors, as well as the sustainable development orientation of the country.

The office and retail commercial real estate segment also shows long-term development potential. Due to the growing demand for scale and quality.

New shopping malls, integrating many services, continue to attract customers. Meanwhile, old office buildings and shopping malls that have not been renovated or upgraded are recording increasingly high vacancy rates. While old office buildings and shopping malls are not renovated or upgraded. According to records, the vacancy rate is increasing. Especially small townhouses in prime locations.

Based on the results recorded from the third quarter of 2024, Ms. Pham Thi Mien – Deputy Head of Market Research and Investment Promotion and Consulting Department of VARS forecasts. If factors related to legal, financial and public investment policies continue to improve, the market is likely to “heat up” in the late 2024 period.

Housing supply is expected to continue to be boosted, creating momentum to lead the market, through M&A activities.

“It is forecasted that by the end of 2024, the segments will continue to recover. Luxury apartments will continue to lead the market, villas and townhouses will become more vibrant. Clean legal land attracts investors and social housing will have more opportunities thanks to new regulations. Industrial real estate will continue to grow. And resort real estate will have the opportunity to improve thanks to condotels being granted certificates”, Ms. Mien predicted.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF. Iif you are planning to rent a warehouse and ready-built factory. We commit to providing reputable, quality services that best suit your needs and finances. – Hotline: 0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

For more about industrial clusters, click here

By 2030, the Mekong Delta province will have a total of 72 industrial culsters, spanning 3.989ha.

Currently, Long An is ranked 3rd in the country for industrial zone development. According to the plan, by 2030, the province will have 17 new industrial parks, totaling nearly 3,200 hectares. This expansion will increase the province’s total industrial zone area to 12,433 ha, securing second place nationally.

Additionally, Long An is developing 28 new industrial clusters, covering 1.808 hectares. By 2030, the province will have a total of 72 industrial culsters, spanning 3.989ha.

Aiming to 2025

Long An is also focusing on promoting industrial development, aiming to become the nation’s leading industrial hub by 2025.

This is a favorable condition for investors to take advantage of infrastructure, preferential policies; in industrial zones and clusters throughout the province.

According to economic expert Dinh Trong Thinh and Dinh The Hien commended Long An’s strategic focus on infrastructure development. They believed that this approach will significantly contribute to the province’s urban development, socio-economic growth. And its emergence as a key player in the Southeast and Mekong Delta regions.

Long An industrial parks attract more than 674 million USD of FDI capital in the first 9 months of 2024

In addition to attracting 75 FDI ​​projects with a total newly granted investment capital of more than 540 million USD. Long An Industrial Parks also have 68 FDI projects with total adjusted capital increasing by more than 134 million USD.

According to The Provincial Management Board of Economic Zone of Long An, from the beginning of this year to September 20, 2024. From the beginning of this year to September 20th, Industrial Parks in the province have attracted 96 investment projects. Including 75 FDI projects, 21 domestic projects, with total newly granted investment capital of more than 540 million USD and 1,227 billion VND; land area for lease 28.39 hectares.

Additionally, there are 84 projects with adjusted capital. Of which, there are 68 FDI projects with total adjusted capital increasing by more than 135 million USD. And 16 domestic projects with total adjusted capital increased by more than 326 billion VND.

Compared to the same period in 2023

Total FDI investment capital increased by 6% (674.39 / 636.44 million USD). Total domestic investment capital decreased by 93% (VND 1,553.15/22,774.73 billion).

Long An currently has 36 established industrial parks with a total planned area of ​​9,693.29 hectares. Of these, 26 industrial parks are qualified to receive investment with a planned area of 5,982.14 hectares. Occupancy rate reached 68.08%. 10 industrial parks have been approved for investment by the Government. They are currently implementing the procedures. Including: site clearance, investment in industrial park infrastructure with an area of ​​2,908.49 hectares.

According to Decision No. 686/QD-TTg dated June 13th, 2023 of the Prime Minister on approving the Provincial Master Plan for the period 2021 – 2030, with a vision to 2050. The whole province will have 51 industrial parks with a total planning area of ​​12,433 hectares.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF. Iif you are planning to rent a warehouse and ready-built factory. We commit to providing reputable, quality services that best suit your needs and finances. – Hotline: 0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

For more about industrial clusters, click here

The 200 million USD wind power equipment factory and the 45 million USD animal feed factory are major investment project pouring into Long An recently.

On September 26th, Aboitiz Foods is expected to inaugurate the largest livestock feed factory in Southeast Asia in Ben Luc. With a total investment of 45 million USD, the factory is considered one of the outstanding industrial projects in the locality with a capacity of up to 300,000 tons per year.

Aboitiz Foods is a member of the Aboitiz Group with more than 100 years of development in many fields such as energy, banking, infrastructure, real estate, and food in many countries. This unit has chosen Long An as the location for its large-capacity factory. Based on the advantages of local infrastructure, especially the convenient port system connecting domestically and internationally.

Previously, in August, South Korea’s CS Wind Group announced a 200 million USD wind power equipment manufacturing plant investment project in the Long An International Port Project Cluster. This is the factory with the largest production capacity in the world. Expected operating capacity is up to tens of thousands of units per year, supplying super-sized and super-heavy equipment weighing 500-4,000 tons.

All equipment and accessories in the first phase are imported and exported through Long An International Port, estimated at 150,000 to 200,000 tons per year.

These two factories are among dozens of projects pouring into Long An recently. Other “huge” capital names pouring in here include:

• Aeon Mall Tan An 1,000 billion VND;
• Coca-Cola factory 3,109 billion VND;
• Pepsi factory 7,486 billion VND;
• Thai Tuan textile finishing factory 12,000 billion VND.

The common point of most new projects is the application of modern technology, use of renewable energy, aiming for green and sustainable factors – in line with the development orientation of the province.

According to data from the Department of Planning and Investment, in 8 months, this locality has granted 65 new FDI projects; 12 more projects than the same period in 2023. Total newly granted investment capital is over 347 million USD.

In total

The province has 1,312 FDI projects with a total capital of more than 11.3 billion USD. Of which, 635 projects have come into operation, with a total capital of more than 4.2 billion USD. With these indicators, Long An is always in the top of the country in attracting foreign capital.

On domestic investment, since the beginning of 2024, more than 1,500 new businesses have registered (an increase of 536), with a total capital of more than 13,700 billion VND. Up to now, Long An has over 18,600 operating enterprises with a total capital of 385,140 billion VND.

The gateway province of the West is assessed to have many advantages in industrial development. In 2023, Long An ranked 2nd out of 63 provinces and cities in the Provincial Competitiveness Index (PCI). This locality has many incentives and policies to improve the investment climate. Provincial leaders have repeatedly affirmed that “Long An needs businesses, not businesses need Long An”.

Besides investment promotion programs

The province regularly dialogues and meets with the business community. Listen to new suggestions and solve problems.

In addition, the convenient location adjacent to Ho Chi Minh City is also a highlight. Existing infrastructure, a series of key national projects passing through the area such as Ring Road 3, Ring Road 4 of Ho Chi Minh City or the trillion-dollar traffic routes connecting the West and Southeast regions that will be formed in the future. Helps increase freight capacity, creating attraction for domestic and foreign businesses.

The province also inherits advantages as a logistics center with Long An International Port. The port covers an area of ​​147 hectares within a 1,900-hectare complex including an industrial park, logistics service center, urban area, trees and water surface. This infrastructure can accommodate ships with a capacity of 100,000 DWT. In 2022, the volume of goods transported through here will reach 2.2 million tons.

From the beginning to the middle of this year, Long An has 34 industrial parks with a total scale of more than 9,250 hectares. These industrial parks have attracted more than 1,900 projects creating jobs for 183,000 workers, including more than 950 FDI projects.

By 2030, according to the approved plan. The province will have up to 51 industrial parks with a scale of more than 12,400 hectares. With this scale, Long An can rise to second place in the country. Just behind Binh Duong, in terms of industrial park area.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF. Iif you are planning to rent a warehouse and ready-built factory. We commit to providing reputable, quality services that best suit your needs and finances. – Hotline:0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

FDI capital continuously flows intro industrial property. According to Cushman & Wakefield, it is estimated that from now to the next 3 years, about 6000 hectares of land in the industrial park will be launched.

Ready-built warehouse and factory market

The ready-built warehouse and factory market will have additional supply in the future. Respectively 1.4 million per square meter and 19 million per square meter. Of which, 55% of future supply is located in Dong Nai province. Industrial property market recovers thanks to new FDI inflows intro Vietnam and increased domestic consumption. It is known that the demand comes from many different industries. From traditional industries such as platics, vehicle manufacturing and animal feed to high value-added industries such as electronics and pharmaceuticals.

Ms. Trang Bui – General Director of Cushman & Wakefield commented: “It is thanks to positive market sentiment that capital into industrial land has reached 79 hectares in the first 6 months of the year. In the coming time, the prospect of a market with many bright colors for industrial property. Domestic and foreign investor and manufactures are gradually catching up with the shifting trend. When looking tho further provinces in the Central region and the Mekong Delta region thanks to competitive land prices, an active FDI attraction strategy and a constanly improving infrastructure system”.

According to data from the Foreign Investment Agency.

As of the end of July, total FDI capital in Vietnam reached 18 billion USD; up to 10.9% compared to the same period last year. It is known that 70.4% of total FDI capital is focused on the processing and manufacturing industry. Poured mainly into high-tech industries sush as electronics, semiconductors, artificial intelligence, renewable energy. The development of those sectors directly impacts industrial property. Due to the increasing demand for factories to meet infrastructure and service requirements.

Vietnam is an attractive investment destination for capital flows

According to analysis by Savills experts, Vietnam is an attractive investment destination for foreign investors. Thanks to its stable political and economic situation and competitive labor costs. In that context, industrial real estate recorded outstanding growth. Attracting many international experts and engineers to work. Creating a key customer base for this market. They often choose to rent serviced apartments managed and operated by international units to meet many requirements on service quality and capital sources.

Currently, investors’ need to diversify supply chains also helps Vietnam become a destination of many considerations. Recently, Nvidia Corporation from the United States has committed to turning Vietnam into a new technology center with a deal worth 200 million USD. Or Hana Micron from Korea and Intel are projects with a scale of up to billions of USD. Along with that, developing green industrial zones. This is a mainstream trend not only taking place in Vietnam but also globally. Therefore, more and more investors are focusing on the circular economy.

Furthermore, Vietnam also aims to achieve net zero emissions by 2050. Therefore, the demand for green industrial real estate comes not only from sustainable development in the manufacturing industry but also from government requirements.

Occupancy rate in FDI projects

According to data from the Vietnam Association of Realtors (VARS), Vietnam currently has 418 industrial parks and export processing zones with a total area of ​​nearly 1.3 million hectares. Including 371 zones outside economic zones; 39 zones in coastal economic zones and 8 zones in border economic zones.

Industrial parks and economic zones have attracted more than 10,400 domestic investment projects. And over 11,200 FDI projects are still in effect with total registered capital of over 2.54 quadrillion VND and 231 billion USD.

FDI capital in industrial parks and economic zones accounts for about 35-40% of the total registered FDI capital increase of the whole country in recent years. On average, the occupancy rate of operating industrial parks is over 75%. 82% in the key northern provinces and 92% in the key southern provinces.

Stable investment environment attracts strong FDI capital

VARS representative said that thanks to the stable political environment and preferential tax policies, Vietnam is considered an attractive destination for foreign investors. There is also strong development of infrastructure; Especially transport and logistics infrastructure. They have helped connect industrial zones and domestic and foreign consumer markets.
Along with that is the opportunity to expand export markets. And attract investment when Vietnam participates in many free trade agreements. At the same time, the shift of global supply chains, especially from China, has significantly contributed to boosting the demand for Industrial Real Estate in Vietnam.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF immediately if you are planning to rent a warehouse and ready-built factory, with reputable quality services that best suit your needs and finances. – Hotline:0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

The 2024 Industrial Property Forum attacted the participation of many representatives of state management agencies and locaties. Along with that is association of businesses, experts, domestic and foreign investors.

On July 30th, in HCM City, The 4th Vietnam Industrial Property Forum (VIPF) 2024; Organizied by Investment Newspaper under the auspices of the Ministry of Planning and Investment. Incoordination with the Vietnam Instrial Real Estate Association.

With the theme “Going Green for new investment waves”, the forum includes 2 discussion session;

• Development prospects of Vietnam’s industrial real estate market;
• And Green transformation in industrial parks, a driving force to welcome new investment waves.

At session 1: Experts and businesses focused on discussing long-term prospects. Along with growth potential, development trends of industrial parks; Attractive fields and locations for industrial real estate.

At session 2: Discussion on trends and model of green real estate development in the future; solutions, technologies, products for construction; and green transformation in industrial parks. Aiming to build green industial parks and ecological industrial parks to attract new investment projects.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF immediately if you are planning to rent a warehouse and ready-built factory, with reputable quality services that best suit your needs and finances. – Hotline:0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIF

We invite you to read more information about our factory here

Update more information about market news here

The industry group with increased rental demand for warehouses and ready-built factories in the South comes from high-tech companies, renewable energy and e-commerce.

According to CBRE Vietnam’s real estate market report for the first 6 months of the year, positive development in the industrial park real estate market continue to be recorded.

Notably, the demand for renting warehouses and ready-built factories from manufacturers in the North and the South increased in the first half of this year.

Demand for renting warehouses and ready-built factories is increasing

For the warehouses and ready-built factories market in the North, in the first half of 2024, there will be more than 225,000m2 of ready-built factories completed in level 1 markets (Hanoi, Hai Phong, Bac Ninh, Hung Yen, Hai Duong). Of which, warehouses and ready-built factories area accounts for 95%.

The absorption area of the ready-built factories is also outstanding and is more than four times higher than the absorption area of the warehouses.

By the end of the second quarter of 2024

The occupancy rate of ready-built factories reached 89%, while warehouses in the Northern region maintained an occupancy threshold of 79%.

The rental price for ready-built factories reached 4.9 USD/m2/month, up 2% over the previous year, and ready-built warehouses reached 4.6 USD/m2/month, down 1% year-on -year.

Groups of companies in the electronics, semiconductor, furniture, and logistics industries are the tenants driving the demand for renting ready-built factories and warehouses in the North in the first halft of this year.

After a period of strong growth, the ready-built warehouse market in the South has no new supply. In the first six months of 2024, the occupancy reate reached 63% thanks to large transactions recorded at projects in HCM and Long An.

In contrast, the ready-built factory market had exciting developments when large-scale projects with a total area of more than 371.000m2 in Binh Duong and Dong Nai came into operation in the first six months of this year. Due to strong supply growth, the occupancy rate compared to the previous quarter reached 81%.

Warehouses and ready-built factories rental prices in the Southern

Warehouses and ready-built factories rental prices in the Southern market remained stable compared to the previous quarter, reaching 4.5 and 4.9 USD/m2/month, respectively. With a growth rate of 2% over the same period last year for warehouses, and 1% for factories.

The demand for ready-built warehouses in the South comes from manufacturers in the high-tech and renewable energy sectors, in addition to the expansion of companies in the e-commerce sector.

Opportunity when manufacturers expand factories

For the industrial land market. Industrial land prices in tier 1 markets in the North increased slightly by 0.3%. Over the previous quarter and 4.5% (over the same period). Reaching an average threshold of 134 USD/m2/remaining term.

For the Southern region, industrial land prices in tier 1 southern markets remain at 173 USD/m2/remaining term. Stable compared to the previous quarter and increased 1% over the same period last year.

The absorption area in the first six months of 2024 reached more than 220 hectares. Helping the occupancy rate in the Northern region maintain at 83%. Manufacturers in the electronics sector continue to lead the Northern market, with large transactions. (oming from Victory Giant or Foxconn in Bac Ninh).

In the Southern market

The occupancy rate is stable at 89%. And the absorption area reaches more than 259 hectares in the first six months of 2024. Manufacturers tend to expand to markets such as Long An and Ba Ria-Vung Tau. (Where industrial land fund is still relatively abundant with more competitive rental prices. (Compared to other tier 1 markets such as Ho Chi Minh City, Dong Nai, Binh Duong).

According to CBRE, in the first six months of 2024. FDI disbursement into Vietnam reached 10.8 billion USD, the highest in the past 5 years. Along with that, a series of large factories in the two regions started construction. Notably the Pandora factory (Binh Duong), Suntory Pepsico factory (Long An). Or SK factory (Hai Phong), continuing to see positive signs of industrial real estate.

OSSIF – READY-BUILT FACTORY SYSTEM WITH QUALITY, REPUTATION, PROFESSIONAL SERVICES Contact OSSIF. If you are planning to rent a warehouse and ready-built factory. We commit to providing reputable, quality services that best suit your needs and finances. – Hotline:0983 68 68 75 – Facebook:  Nhà xưởng dịch vụ OSSIFWe invite you to read more information about our factory here Update more information about market news here

 

Vietnam is currently in top 10 of 50 emerging logistics markets globally. In 2024, it is forecast that the world economy will gradually recover. This is opportunity for logistics businesses to find orders again.

In 2023, the world economy shows signs of recovery affter the Covid-19 pandemic.

However, the recovery speed is slow due to many complex factors combined with unpredictable geopoliticial risks, causing the global economy to face the risk of recession. Weak demand and rising costs push back production, business, investment and trade activities.

Vietnam is currently among the top 5 countries in terms of logistics development in the ASEAN region

It is known that The United States’ continuous interest rate increases have a negative impact on the USD exchange rate, global inflation, and strong fluctuation in energy and essential food prices. Highly USD interest rates and competition between major economies also affect the movement of FDI capital flows and entails major changes in the financial and monetary policies of major economies in the world.

All of the above factors have an impact on the development of Vietnam’s logistics service industry. Despite facing many challanges in 2023, the logistics industry continues to strive regain growth momentum.

The World Bank (WB) recorded that by 2023, Vietnam will rank 64/160 countries in terms of logistics development; ranked 43rd in the logistics performance index (LPI). In the ASEAN region, Vietnam is in top 5 countries along with the Philipines, Singapore, Malaysia, and Thailand.

According to the Emerding Market Index Ranking of Agility – the world’s leading transportation and logistics service provider, Vietnam is currently in top 10 of 50 emerging logistics markets globally.

Regarding international logistics opportunity criteria, Vietnam ranks 4th and is considered the country with the leading logistics development potential Southeast Asia. This countinues to confirm that the development potential of logistics industry is very large, the only problem is which environment and policies will be focused on promoting in the future.

Although Vietnam’s logistics sector has developed rapidly and achived positive results, the field has limitiations and challenges. Specifically, the legal framework for the logistics industry has had many documents issued.

However, specific policies detailing those guidelines have not yet been implemented or are still overlapping.

In addition, transportation and logistics infrastructure is not synchronized, creating multimodal transportation corridors while the need for high-quality transshipment of goods between modes is growing.

At the same time, Vietnam also lacks a centralized logistics supply with a strategic location, synchronized with a system of ports, airports, national highways, and production facilities… These things are posing significant challenges for the development of Vietnam’s logistics industry in the future. However, this is also an opportunity for the warehouse market to develop.

For businesses looking for a solution to start a business or expand production effectively, optimize costs, and create quick revenue conversion, choosing a ready-built warehouse is the right decision.

Possessing strategic locations, fronting Highway 50, adjacent to developed infrastructure area, convenient transportation, the OSSIF ready-built factory system cannot be ignored.

Update more information about FDI Long An here.

Follow OSSIF fanpage to update the latest preferential policies for service factory/warehouse rental.