Current Status of the Industrial Park Leasing Market
According to data from Savills Vietnam, approximately 33,000 hectares of industrial parks are available for lease across Vietnam, with an occupancy rate of up to 80%. Particularly in the southern region, the demand for industrial park leases remains high. The trend of ready-built warehouses and factories has attracted significant attention from investors. These types of properties have a nationwide occupancy rate of 80%, with the average rental price in the southern market reaching USD 5.4 per square meter per month. Meanwhile, in the northern region, industrial parks in provinces surrounding Hanoi, such as Bac Giang and Hai Duong, are also showing rapid development.
Neil MacGregor, CEO of Savills Vietnam, noted that despite the volatile international situation, Vietnam has maintained stable economic growth since the beginning of the year. This stability has made Vietnam a top destination for investors from countries such as Singapore, China, and Japan. MacGregor highlighted that Vietnam’s rich production experience, continuous infrastructure development, and a young, skilled labor force have contributed to its increasing role in the global value chain, providing strong support for industrial, retail, office, and residential real estate markets.
Foreign Direct Investment Trends
Jack Nguyen, General Manager of InCorp Vietnam, reported that foreign direct investment (FDI) primarily flows into manufacturing, real estate, and the energy sector. Singapore, Japan, and Hong Kong (China) remain the largest sources of investment. Vietnam, as an ideal destination for companies looking to diversify their supply chains, is especially favored by Chinese enterprises. InCorp Vietnam has received numerous inquiries from Chinese companies, particularly regarding the northern market. As Vietnam accelerates the development of new industrial parks, it offers more options for companies intending to relocate their supply chains.
Rapid Growth of Ho Chi Minh City and Hanoi
According to research from Savills Impacts, Ho Chi Minh City and Hanoi are among the fastest-growing cities globally. This growth is driven by changes in Vietnam’s demographic structure, accelerated urbanization, and continuous economic expansion. Additionally, remittance income in Ho Chi Minh City has reached its highest level in a decade, with an estimated 20% of remittance funds being directed into the real estate sector, further supporting the recovery of the real estate market.
Key Insights:
- The demand for industrial park leases remains high across Vietnam, particularly in the southern region, with ready-built warehouses and factories becoming a new investment focus.
- Vietnam’s stable economic growth and increasing role in the global supply chain have attracted significant investments from countries such as Singapore, China, and Japan.
- FDI primarily flows into manufacturing, real estate, and energy sectors, with northern industrial parks becoming a key focus for Chinese enterprises.
- Ho Chi Minh City and Hanoi are experiencing rapid growth, with remittance income playing a crucial role in the recovery of the real estate market.
If you are looking to establish a factory or start a business in Vietnam, feel free to contact Jaycy. We are committed to providing professional consulting and support to help you succeed in the Vietnamese market.
