Ready-built factories and warehouses ‘rise to the throne’

The market for ready-built factories and warehouses recorded good and stable performance even during the Covid-19 outbreak. This market is likely to grow stronger thanks to new changes in trends in both supply and demand in the coming time.

CBRE Vietnam’s assessment shows that it is expected that by the end of 2020, the total supply of ready-built factories and warehouses in the Northern regions will reach nearly 2 million m2 of floor space for lease (up 25.3% over the previous year). ). In the South, the total area of ​​ready-built factories will reach nearly 2.7 million m2 (up 28.2% over the previous year). After the pandemic is contained, the average asking rent of ready-built warehouses is expected to increase by 4% to 11% year-on-year.

Commencement of many industrial zones

In mid-May 2020, Tan Thanh Long An Investment Joint Stock Company started construction of the Viet Phat industrial park (IZ) project in Long An. The project covers an area of ​​1,800 hectares, is modernly planned by the investor, following the model of a combination of an industrial park and an urban area. The land area for the industrial zone is more than 1,200 hectares and the land for urban areas is more than 625 hectares.

Also in Long An, also in May 2020, another project started phase 3, Duc Hoa III Industrial Park – SLICO. In March, Vingroup transferred all capital in Vinhomes Industrial Park Investment JSC to its subsidiaries, Vinhomes JSC and Green City Development JSC to restructure internal ownership. This is a strategic move, marking the participation of this group in industrial park real estate development.

Also during the social distancing period in April 2020, a consumer goods retail business in a joint venture with a foreign country found a ready-built factory of 1 hectare for storage, with the criterion that the radius is far from the center of My Dinh. (Hanoi) from 7-10 km. The agent of Batdongsan.com.vn channel “scoured” the requested area, but could not find a ready-made factory with such a large area.

According to some experts in the real estate field, the majority of investors from countries and territories such as Japan, Korea, Hong Kong, Singapore, Italy, Germany, Norway… come to look for investment opportunities. in City. In the first months of the year, Ho Chi Minh City was interested in the system of ready-built factories. In order to meet the demand for clean land and ready-built factories, which is expected to increase in the coming time, many businesses have actively created a clean land fund and invested in building factories.

Pham Ngoc Thien Thanh, Deputy Director of CBRE Vietnam Research and Consulting, said that manufacturers and governments all over the world have an urgent need to rebuild the global supply chain. Vietnam’s industrial real estate market is showing a strong transformation to catch up with new demand trends.

Particularly for the factory and warehouse market, the new development of ready-made industrial real estate products is taking place extremely quickly to take advantage of the golden opportunity that is approaching for the entire industrial real estate market. Vietnam. In which the “generation of industrial factories 4.0” using 4.0 technologies to bring more convenience to customers in the process of leasing, production and operation is emerging as a trend.

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In the coming time, the demand for ready-built factories and warehouses will continue to increase when all countries have an urgent need to resume the broken supply chain (Photo: TL)

Steady growth

Leaders of Tan Thuan Industrial Development Company Limited (IPC), the investor of a series of IZs and EPZs in Ho Chi Minh City. According to Ho Chi Minh City, the development of ready-built factories will help the use of land funds, especially in localities with high land value such as Ho Chi Minh City. HCM, high efficiency.

Previously, in addition to more than 115,000 m2 of ready-built factories in Tan Thuan EPZ and Linh Trung EPZ with occupancy rates of more than 90%, IPC has also built another 20,000 m2 of factories to meet market demand. The investor of Tan Thuan EPZ has also completed an 8-storey factory area, with a floor area of ​​more than 15,700m2.

Assessing ready-built warehouses, Mr. Le Trong Hieu, Director of Industrial Real Estate Rental Services, CBRE Vietnam, acknowledged that during the outbreak of the Covid-19 pandemic, the demand for renting ready-built warehouses increased. surge while the number of rental requests of other types of industrial real estate decreased due to travel restrictions and social isolation. This stems from the backlog of import and export goods due to disrupted transport activities and the strong growth of the e-commerce segment.

The rental price of ready-built factories has remained stable even during the Covid-19 outbreak. The supply of ready-built factories continued to grow steadily in both the main industrial areas in the South and the North.

Commenting on this market in the coming time, Mr. Le Trong Hieu, said that with positive operating results, the market of ready-built factories and warehouses is expected to grow stronger thanks to changes in the market. new trends in both supply and demand.

The need to expand storage space and distribution network of e-commerce companies is and will dominate the demand for warehouse rental. Along with that is the need to find land funds to develop logistics facilities.

Temperature-controlled storage spaces (cold storage or cool storage) will be seen as new development trends in the logistics industry as the fresh food distribution and trading network expands in both online and offline modes. online and at existing stores and supermarkets.

In areas with limited industrial land supply, high-rise warehouse models have also begun to appear to create larger storage space for the needs of e-commerce companies.

CONTACT

VSIP FACTORY

Address: 011 Vinh An Group, Tan Vinh Hiep Ward, Tan Uyen District, Binh Duong Province.

Hotline: 0937.899.227– 0971.009.908 (Mr. Dat)

Email: tongpn@gmail.com

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