Currently, the total supply of warehouses and ready-built factories reaches 15.1 million square meters. Increased by more than 30% compared to last year. In addition, new supply increased sharply in key provinces.

According to the e-Conomy SEA 2024 report by Google, Temasek and Bain & Company. Vietnam’s e-commerce market is estimated to reach 22 billion USD this year. Ranked 3rd in Southeast Asia after Indonesia (65 billion USD) and Thailand (26 billion USD).

In that context, the demand for warehouse facilities, circulation centers, and logistics centers in Vietnam is also increasing.

The supply of warehouses and ready-built factories in the Southern region reached 10.6 million square meters. In which factories account for 49% and warehouses account for 51%. Occupancy rates of these segments reached 80%, with average rental prices of 4.4 USD/sqm/month.

In the North, warehouses and ready-built factories reached 4.5 million m2. Accounts for 30% of national supply. With a distribution ratio of 61% factory and 39% warehouse assets. The overall occupancy rate reaches 80%, with the average rental price at 5 USD/sqm/month.

According to Mr. John Campbell, Director of Industrial Services Department, Savills Vietnam shared. This positive performance is partly due to strong demand for logistics space.

“In Vietnam, the logistics industry has great growth potential and is one of the fastest growing industries in the world. The main driving force comes from the stable growth rate of the economy. Trade activities, high value-added manufacturing and a growing middle class. Contribute to the growth of the e-commerce industry”, Mr. John Campbell said.

In order to meet this great demand, Mr. John Campbell also made some recommendations. For the Government and investors to consider further in the coming time.

Specifically, the most important step is to invest heavily in infrastructure. And ensure projects are completed on time. Infrastructure is the backbone of logistics. This includes everything from customs clearance to multimodal transport, roads and airports.

Advise:

“Another important factor is ensuring adequate land for logistics and e-commerce. Because some industrial parks in Vietnam are only for production. This can cause challenges for logistics and e-commerce companies finding suitable land. To solve this problem, it is important to have industrial parks that are flexible enough to accommodate both manufacturing and logistics activities”, Mr. John Campbell said.

At the same time, Savills also recommends. Future project development planning for new industrial parks should allocate sufficient space for logistics and warehousing. Besides, with the significant growth of e-commerce in Vietnam. Providing suitable locations for distribution and transit centers is also essential.

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

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

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.

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 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 warehouses and 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 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 coming 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 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

 

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.

Accumulated from the beginning of 2024 until now, Long An has received FDI capital from 40 countries ang territories. Overall, there are 1,282 projects with a total registered capital of over 11.1 million USD, leading the Mekong Delta.

Promote solutions to improve the investment environment

According to a report of The People’s Comittee of Long An province, in the first quarter of 2024, the province’s gross product (GRDP) is estimate to increase by 4.83%. This is a positive growth rate, the hightest compared to the same period in the last 2 years. This shows that the province’s economy has a positive recovery. Currently, Loang An targets economic growth in 2024 from 8 to 8.5%.

According to Mr.Nguyen van Ut – Chairman of Long An Provincial People’s Comittee, he directed departments and localities to strengthen the implementation of statistics, forecasts and effectively deloy solutions to restructrure the ecomy. Associciated with innovating more synchronous, comprehensive and substantive growth model. Improve the investment environment, improve quality and efficiency in attracting investment.

In addition, based on data from the Department of Planning and Investment off Long An province as of the end of the first quarter of 2024, there are 503 newly established enterprised, with a total registered capital of over 6.9 billion VND compared to the same period. In general, the number of businesses increased by 39% and registered capital increased by 67% .

Notably, there are 8 business projects established by domestic investors (DDI) with a total capital of 2.3 trillion VND. Up to now, the whole province has 17,429 businesses registered to operate, with a total capital of over 379 trilion VND, 2.213 DDI projects with registered capital of over 300 trillion VND.

Cumulatively since the begining of this year, the province has issued investment certificates for 21 FDI projects with new investment capital of 166 million USD. Long An receives FDI capital from 40 countries and territories with 1,282 project, total registered capital of over 11.1 million USD. Countinues to reaffirm its position in the top 10 provinces and cities in the country and leading the Mekong Delta in attracting FDI.

According to statistics from the Department of Industry and Trade of long An province in March 2024, the industrial production index increased by 5.12% over ther previous month. Accumulated by the end of the first quarter of 2024, the industrial production index increased by 4.33% compared to the same period in 2023.

After investment promotion conferences and business trips abroad, provincial leaders have received and worked with many agencies, organizations, and business delegations from the United States, Singapore, Korea, Japan, China, and Taiwan to research and explore investment opportunities in the province. Especially high-tech projects, semiconductors, waste treatment, clean energy, green credit.

Resolve problems

In order to improve Long An’s investment environment, build trust and position in the strategic vision of investors from key markets, the People’s Committee of Long An province also directs the building of an effective and efficient administration, tightening administrative discipline; Strengthen national defense and security, ensure social order and safety.

At the same time, the Department of Planning and Investment was assigned to actively coordinate with relevant agencies and direct the effective implementation of the Provincial Planning Implementation Plan for the period 2021-2030, with a vision to 2050.

In addition, focus investment resources on upgrading the province’s socio-economic infrastructure system overall and synchronously. In particular, transportation infrastructure must have focus, key points, and regional connectivity. Open up new development space, increase investment attraction through innovation and creativity. Proactively change investment promotion thinking to adapt to the trend of shifting investment waves in the world; creating important breakthroughs to successfully access and attract domestic and foreign capital.

It is known that recently the Department of Planning and Investment of Long An province actively supported investors in accessing legal information and promptly resolved related problems. Currently, the department is establishing a Steering Committee to remove difficulties for key projects, in order to promptly overcome bottlenecks in attracting and receiving investment projects in the area.

Update more information about FDI Long An here.

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

Towards the end of the year, real estate losses tended to decrease, many landowners chose to hold out when seeing positive signals from the market.

In early October, Joint Stock Bank Branch Director – Ms. Ngoc put up for sale her private house of 38.4 m2 in Phu Nhuan District, Ho Chi Minh City. Now she decided to stop and wait for the market to improve.

She said, this house was initially listed for sale for 5.3 billion VND. According to estimates, after negotiating with the buyer, the transaction can be down to about 5 billion VND, at this price the sale can be closed.

 

This level has decreased by 20% compared to the peak (2020 – 2021), but many customers came to see it and then negotiated the price down to 3.5-4 billion VND so they could not sell it.

According to the sharing, Ms. Ngoc does not often use this house so she wants to sell it and get her money back. Her finances are debt-free, so she doesn’t have to cut losses at all costs. Therefore, she decided to wait for the market to stabilize before selling again.

Mr. Phuc (residing in Thu Duc City) also stopped selling his land in Thu Dau Mot City after being pressured many times by customers. He said that the land lot purchased in 2021 for 3.6 billion VND, now sold for 3.2 billion VND, is still highly criticized.

“This selling price compared to when I bought it was a loss of 400 million VND, but customers still want to reduce it further. I decided to keep it and wait for the market to recover before selling it,” Mr. Phuc said.

The motivation for Mr. Phuc to keep the property is because bank interest rates have cooled down, he has borrowed money from the bank, and currently does not need to sell his house anymore, so he wants to wait a little longer for the market to improve.

Recently, transaction cessation has become more common, especially after bank interest rates dropped sharply and new legal policies were passed. Most of the products temporarily suspended from trading are small, registered plots of land in residential areas and individual houses in the inner city. Most of the products temporarily suspended from trading are land plots with small areas and individual houses in the inner city.

With the private house segment, the reason for flipping is mainly because the owner adjusted the price previously negotiated with the broker. The owner emphasized that he did not want the price to drop further. As for the land segment, information about the upcoming tightening of land division and separation makes many people expect that the land plots that have been separated and legally completed will be more “valuable”. If they are not financially stuck, the owners want to keep it instead of selling it cheaply at present.

In November, the wave of sales to cut losses on land and individual houses cooled down, and deep discounts of 30-35% were no longer common.

Primary land and housing prices in Ho Chi Minh City and neighboring provinces recorded an average decrease of 3-10% over the same period in 2022And it only decreased in the group of high-value products with incomplete infrastructure and legality. As for the secondary market, prices and transactions maintain a sideways trend.

According to Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association, although real estate has passed the most difficult period, it is not the end of the chain of difficulties. Compared to the beginning of the year, the market has only partially overcome difficulties, meaning there are still many difficulties that need to be resolved in order to fully recover.

Accordingly to Mr. Ngo Quang Phuc – General Director of Phu Dong Group, recommends that if investors accept to hold land, they need to wait another 6-12 months to have liquidity again. If the financial foundation cannot hold out until then, the owner should accept a partial sale.

(Source: VnExpress)

Visit our Fanpage: Nhà Xưởng Dịch Vụ OSSIF

Subscribe our Youtube: Nhà Xưởng Tân Kim – Ossif

 

Despite other gloomy segments, industrial real estate continues to grow steadily with rental prices increasing by up to 30%.

Fulian Precision Technology Component, a subsidiary of Foxconn, has invested 621 million USD in Bac Giang. Earlier this year, they spent 62.5 million USD to rent 45 hectares of land located in Quang Chau industrial park, with a term until February 2057. It is expected that this will be the location of a new factory to assemble iPads and AirPods for Apple.

In the first half of the year, Goerteck (Hong Kong) was in the top 5 units with high capital injection in the manufacturing industry in the North with 280 million USD. This company’s third project in Bac Ninh specializes in manufacturing consumer electronic products, communication equipment, and optical instruments, expected to come into operation in 2024. To deploy, they rented 62.7 hectares of land in Nam Son – Hap Linh industrial park to build a factory.

While the Northern industrial parks welcome many electronic technology, automation or solar energy equipment customers looking to rent land, the South receives a series of large tenants in a variety of industries from tires, beverages to textile.

For example, Binh Phuoc welcomed the province’s largest investor – Shandong Haohua Tire, registering half a billion USD in capital. This Chinese tire manufacturer leased 43 hectares of land in Minh Hung – Sikico industrial park. Or mention Suntory Pepsico Vietnam, which leased 20 hectares of land in Huu Thanh IDICO Industrial Park to implement a 185 million USD investment project in Long An.

In the first nine months of the year, foreign direct investment (FDI) registered in Vietnam was nearly 20.21 billion USD, up 7.7% over the same period. Specifically, capital poured into processing and manufacturing took the lead, reaching more than 14 billion USD, accounting for nearly 69.3% of total registered capital and increasing 15.5% over the same period, according to the Foreign Investment Department.

Foreign investors in the manufacturing sector continuously come to Vietnam to help stabilize the industrial real estate market. According to a recently published report by Savills, industrial parks nationwide have an occupancy rate of over 80%. Northern key provinces reached 83% and southern key provinces reached 91%.

Regarding supply, in 2023, 397 industrial parks were established with a total land area of 122,900 hectares. Of these, there are 292 active zones with a total area of more than 87,100 hectares. And 106 other areas are being built with a total area of 35,700 hectares.

Despite large additional supply, rents still increase. In the North, rental prices increased by 30%, reaching an average of 138 USD per square meter per rental cycle (from 102 USD last year). 

In large industrial provinces in the South (Binh Duong, Dong Nai, Ba Ria – Vung Tau, Long An, Ho Chi Minh City), rent increased from 152 USD last year to 174 USD per m2. Supply in these localities is limited. Binh Duong, Dong Nai, and Ho Chi Minh City have very high occupancy rates, 99%, 96% and 95% respectively.

The industrial real estate market is forecast to continue to be promising. According to experts, despite global difficulties, Vietnam is expected to continue to welcome the wave of shifts in the global production supply chain to competitive production centers in Southeast Asia.

Savills also recorded an increasing number of requests and site surveys from multinational manufacturing, logistics and e-commerce businesses, reflecting growing demand for industrial products.

According to Mr. John Campbell, Vietnam’s attractiveness is maintained thanks to its young workforce and competitive costs, export-oriented economy, stable business environment, geographical location, and active participation. into Free Trade Agreements.

However, industrial real estate in Vietnam still has 3 challenges. Firstly, the quality of all traffic infrastructure in Vietnam is still lower than other countries in the region. Transportation infrastructure is expanding rapidly but development has not yet met the pace of economic and social growth. In fact, in 2023 Vietnam has dropped 4 places compared to 2018 in the World Bank’s logistics performance index (LPI), down to 43 globally.

However, industrial real estate in Vietnam still has 3 challenges.

• Firstly, the quality of all traffic infrastructure in Vietnam is still lower than other countries in the region. Transportation infrastructure is expanding rapidly but development has not yet met the pace of economic and social growth. In fact, in 2023 Vietnam dropped 4 places compared to 2018 in the World Bank’s logistics performance index (LPI), down to 43 globally.
• Secondly, as the focus shifts to attracting high value-added industries and increasing productivity to be on par with regional countries, the demand for skilled labor will increase. Labor costs in Vietnam are only a third of those in China (329 USD per month compared to 1,119 USD per month) but productivity is also lower at the same level.
• Thirdly, strictly new fire regulations have created obstacles for industrial developers, manufacturers and logistics companies. Foreign investors are having difficulty obtaining the appropriate certificates and some projects have been delayed because of this problem.

In recent years, steel factories have become a popular choice for many businesses. So why should you choose to build a steel factory? This article will help you better understand the benefits of building a steel factory

Factory construction is an important and expensive process in developing manufacturing enterprises. Therefore, choosing construction materials is also very important to ensure safety and efficiency in production activities.

Low cost

One of the biggest benefits of building a steel factory is its lower cost compared to other materials such as concrete or wood. Steel is a very popular and easy to find material, so its price is also very reasonable. In addition, this also helps save on transportation and installation costs because the parts are pre-manufactured and can be assembled quickly.

Save time

Time is an important factor in production activities. Building a factory with steel saves time compared to using other materials. Because steel factory parts are pre-manufactured and can be quickly assembled, the construction process will go faster and there will be less time spent waiting for parts to be produced.

Durable

Steel is a very durable material and can withstand many impacts from the external environment such as wind, rain, sun and humidity. Therefore, building a steel factory will help the factory last for a long time without needing to be replaced or repaired.

High safety

Building a steel factory also ensures absolute safety for production activities. Steel is a very sturdy material and has good bearing capacity, thus minimizing the risk of collapse or accidents during factory operations.

Easily expandable

You can easily expand the production area when necessary. The factory’s parts are pre-manufactured and can be quickly assembled, so expanding the production area will not take much time or cost.

Easy to repair

If there are any problems with the factory, repairing will also become easier when using a steel factory. Because factory parts are pre-manufactured and can be replaced quickly, repairs will not be time-consuming or costly.

Environmental protection

The use of steel factories also contributes to environmental protection. Steel is a highly recyclable material and causes less pollution to the environment than other materials such as concrete or wood. In addition, building factories with steel also helps minimize the exploitation of natural resources.

Energy saving

Steel factories also help save energy during the production process. Steel is a material with good thermal and sound insulation properties, so it will help keep heat and sound inside the factory. This will help minimize the use of machinery for air conditioning and minimize noise during the production process.

Easily change designs

By using a steel factory, you can easily change the design of the factory when necessary. Factory parts are pre-manufactured and can be easily repositioned, so changing the design will not take much time or cost.

Flexible in use

Steel factories also give you flexibility in the use of production space. Because factory components are pre-manufactured and can be quickly assembled, you can easily change the production area to suit current production needs.

Thus, building steel factories brings many benefits to manufacturing businesses. Low cost, time saving, high durability, absolutely safe, easy to expand and repair, environmental protection, energy saving, easy to change design and flexible in use. These are the main reasons why building steel factories has become the top choice of many businesses.

Therefore, if you are planning to build a factory for your business, consider and choose steel materials to ensure safety and efficiency in production activities.

Follow our Fanpage: Nhà Xưởng Dịch Vụ OSSIF 

Or dial hotline: 𝟎𝟗𝟖𝟑 𝟔𝟖 𝟔𝟖 𝟕𝟓 to receive consultation and visit our factory system for free.

For more article: click here