Weekly Vietnam Property News (25 – 29 May, 2020)

Domestic and foreign investors are aggressively seeking land to build factories

A new investment trend that can “explode” in the near future is the appearance of domestic and foreign investment flows into export processing zones and industrial parks.

There are three reasons to explain this trend: Firstly, the economic stability with the GDP growth rate of Vietnam’s economy is from 6.5 to 6.8%, increasing steadily over many years. ; secondly, the urbanization speed is also relatively large, the transportation system is developing, especially the abundant labor force with relatively cheap labor costs compared to other countries in the region; Thirdly, Vietnam is considered as one of the most stable political institutions in the world at the present time.

In addition, one of the biggest drivers in the past 2019 and 2020 is Vietnam’s initiative in joining key FDAs.

These are all important factors for investors, especially investors in the field of industrial real estate. In addition, as a rare country in the world to successfully control the COVID-19 epidemic, Vietnam can be considered an ideal destination for investors to accelerate their search for opportunities. associations in industrial zones, factories, export processing centers …

Vietnam Industrial Real Estate – Time for an important change

Recently, Vietnam’s industrial real estate market has been very active with increasing demand for land and factories from both existing and new tenants. Vietnam is facing the greatest opportunity to become a new production center of the world. Manufacturing activities will continue the trend of moving out of China due to rising costs; trade conflict with the United States; and manufacturers’ strategies to reduce dependence on a single market, especially after COVID-19.

Rents and occupancy rates of industrial zones in large manufacturing cities and provinces have risen sharply in the context of limited industrial land supply. However, there are still concerns about Vietnam’s ability to absorb this new wave of production relocation, as there are still challenges such as transfer risks and the risk of high taxes due to imbalance. trade, infrastructure constraints and ecosystems of original equipment manufacturers.

Industrial real estate: The era of ready-built factories and warehouses

During the COVID-19 pandemic, demand for rental of ready-built warehouses increased dramatically while the number of rental requests for other types of industrial real estate decreased due to travel restrictions and social isolation. festival. This stems from the backlog of import and export goods due to interrupted transport activities and the strong growth of the e-commerce segment.

The market of ready-built factories and warehouses recorded good performance. Rental rates for ready-built factories remained stable even during the COVID-19 outbreak. Supply of ready-built factories continued to grow steadily in both major industrial areas in the South and the North.

Ho Chi Minh City Eastern Real Estate continuously sets new price ground

Eastern area of ​​Ho Chi Minh City is considered as an area with impressive increase in real estate price during the past time. This is also a real estate fever that has occurred many times before. The wave of investment and trading activities of this market is always more exciting than other regions because of the advantages of transport infrastructure and planning.

Although the real estate market here is somewhat slower due to the effects of the Covid-19 epidemic. But, overall, real estate prices in this area still quietly increased, continuously setting new price ground during the past time. With quality products, reasonable prices, the legal absorption of the market is still quite good.

Immediately after the time of translation, the push on the project of establishing “Eastern City” has made the real estate market in East Saigon bustling again. The actual survey showed that, grasping the heat of the regional market, currently a number of new projects being sold in the area also offered a higher price level compared to the previous opening period.

Compiled from many sources by LOOKOFFICE

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