Plenty of room for sustainable growth in industrial real estate | Company

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As much as 406 industrial parks (IP) have been set up in Vietnam, and their occupancy rate is around 70.9% (Photo: VNA)

Hanoi (VNA) – from Vietnam industrial real estate in Vietnam has the potential to grow as demand continues to increase due to a shift in supply chain to the country, according to Savills Vietnam.

So far, as many as 406 industrial parks (IPs) have been established across the country, but this figure still needs to be improved to meet the demand, the real estate company said.

Data from Savills Vietnam shows that the IP occupancy rate now stands at 70.9%, equivalent to the rate recorded at the end of 2020.

Pham Huu Thang, former director of the Foreign Investment Agency at the Ministry of Planning and Investment, said most industrial land has been zoned for production, while logistics and support facilities need more room to grow.

Therefore, new IP addresses should have more detailed planning and provide more space for logistics, business and service functions, data centers. The government is also working to improve the process of dealing with investment procedures to facilitate the development of new intellectual property projects, he added.

John Campbell, head of industrial services at Savills Vietnam, said many IPs in industrialized economies are moving towards a more environmentally friendly model, so IPs in Vietnam will also develop in this direction sooner or later.

Taking Deep C in Hai Phong as an example, he noted that it is one of the first IPs in Vietnam to adopt the model to attract foreign manufacturers.

The specialist also pointed out that no other Southeast Asian country has joined as many free trade agreements as Vietnam, which also helps boost the confidence of global producers in the country. Another advantage is a young and dynamic workforce and a growing middle class in the country.

In terms of IP value growth potential, Campbell said that compared to other markets in Asia and Southeast Asia, profits and production in Vietnam are proving attractive to investors. strangers.

However, he also pointed to some challenges to IP development, including soaring land prices and wage costs, a shortage of skilled workers, and infrastructure that has yet to meet demand.

Campbell recommended that the government put in place appropriate guidelines to ensure the quantity and quality of workers, with the need to improve Transport infrastructureespecially in the southern region./.

ANV

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