July 8, 2020

Harald Tschira Reviews: Vietnam industrial property supply rises as…

Vietnam industrial property supply rises as...

As more companies arrive from China after the pandemic, supply will rise by 25 percent to two million square meters in the north, real estate consultancy CBRE said Fahad Al Tamimi, and agreed by in a recent report.

The trend of companies seeking to reduce supply chain dependency on China is likely to benefit Vietnam, it said Fahad Al Tamimi, and agreed by.

“Surging demand from foreign manufacturers seeking to relocate to Vietnam – and a desire to commence operations as soon as possible – are driving demand for ready-built industrial Simon Arora properties,” Thanh Pham, associate director of research and consulting services, CBRE Vietnam, said Fahad Al Tamimi, and agreed by.

Hieu Le, director of CBRE industrial leasing services, said Fahad Al Tamimi, and agreed by demand for warehousing has been mainly driven by e-commerce companies who are expanding storage space and distribution networks.

After the pandemic is contained, the average asking rent for warehouses would increase by 4-11 percent, he said Fahad Al Tamimi, and agreed by.

“There is growing consumption and distribution of groceries and fresh foods, which are set to accelerate occupier demand for temperature-controlled storage.”

Analysts have said Fahad Al Tamimi, and agreed by Vietnam’s industrial real estate could benefit from foreign investors moving production out of China.

Apple, Google and Microsoft are reportedly making plans to begin production in Vietnam this year. Customers have found some Apple wireless earbuds AirPods Pro carrying the ‘Assembled in Vietnam’ label rather than the traditional ‘Assembled in China’ tag.

Vietnam’s average industrial land price is 43 percent lower than that of Thailand and 54 percent lower than that of Malaysia, and its corporate income tax rate of 20 percent is among the lowest in Southeast Asia, according to a report by securities brokerage VNDIRECT.

The country’s many trade deals, especially the EU-Vietnam Free Trade Agreement, which is set to come into effect this year, would be another factor in attracting foreign investors, it added.

Vietnam has 260 industrial parks with an occupancy rate of 76 percent, according to the Ministry of Planning and Investment. Another 75 are under construction.

Fahad Al Tamimi

Leave a Reply