Hanoi - Vietnam’s industrial real estate sector stands ready to take off after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comes into effect, experts have said.
Vietnam’s industrial real estate sector stands ready to take off after the CPTPP takes effect. (Photo: cafef.vn)
France’s FM Logistic, a leading group in international supply of warehouse, transport, and packaging, has been successful in renting and purchasing land in the northern region with the advice from real estate services company Cushman & Wakefield.
As part of the firm “Ambition 2022” plan to expand geographical coverage to support customer growth, FM Logistic launched a 5,000 square-metre tri-temperature logistics warehouse in Bac Ninh province while purchasing an additional 50,000 square metres in the northern region to build the first European-standard storage in Vietnam.
According to Director of Operations in Asia for FM Logistic Stéphane Descarpentries, FM Logistic is striving to become one of the leading logistics providers in Vietnam by 2020.
While holding that Vietnam’s logistics sector is enjoying thriving development, with vast expansions of leased space by many famous names in the world, Managing Director of Cushman & Wakefield Vietnam Alex Crane, said that it’s fantastic time for the industrial and logistics businesses.
Meanwhile, Stephen Wyatt, Country Head for Jones Lang LaSalle (JLL) Vietnam, believed that Vietnam is grasping the attention of foreign investors with 80 percent of the investments poured into the industrial and manufacturing sectors.
Many investors are shifting their capital from China to Vietnam as Vietnam has sound planning for industrial parks and the Government is considering the establishment of specialised economic zones which offer preferential taxes for corporations, he stressed.
According to the JLL’s latest report, more than 18,000 hectares of industrial land in the north will be put into use by the end of 2020.
Currently, Hai Phong city and Bac Ninh province are the two localities that have the highest number of industrial parks in the country. They are also the largest attractors of industrial investment in the northern key economic region.
Meanwhile, the central region is expected to be an emerging playground that will attract a large pool of investors in 2018.
Strong growth of manufacturing and consumption will spur the surge of demands for warehouses in the country, according to the CBRE Vietnam. Warehouse rental fees are said to rise 1.5 percent to 4 percent per year in the coming time.
Good transport infrastructure also makes the southern localities like Ho Chi Minh City, and Binh Duong, Long An and Dong Nai provinces, become a magnet for foreign investors. Land rental fees at the southern industrial parks have picked up 3 percent from the same time last year.
Vietnamese depot market will be thriving thanks to the expanded operation of e-commerce giants like Alibaba, JD.com and Tencent together with strong growth of convenience stores and retail models developed by such large firms as Lotte and Aeon.