Industrial real estate continues to maintain the heat in 2022

Industrial real estate is a term that has been mentioned a lot in the past year. In recent years, industrial real estate has proved its heat and attraction in the real estate market. In particular, by 2022, the epidemic will continue, but industrial real estate in Vietnam will still keep its heat. In the article below, let’s find out with Nam Dinh Vu an overview of the “heat” of industrial real estate in 2022.

1. Positive statistics on industrial real estate in 2022

As expected, the industrial real estate industry will maintain the heat in 2022; below are the optimistic statistics.

According to information from the real estate industry, VNDirect Securities Company forecasts that land rents will continue to increase by 6-10% over the same period in 2021 in both the South and the North. And this year, the field will maintain its charm.

In 2022, industrial park real estate is also supported by four major trends: the promotion of public investment in infrastructure, the disbursement of public investment capital in 2022 will increase by 20-30% compared to the previous year Actual disbursement in 2021 and a series of large infrastructure projects will be the driving force for the industrial park real estate group.

In addition, according to the Q4/2021 Report of JLL Vietnam, in 2022, Nam Tan Lap Industrial Park (IZ) in Long An and VSIP 3 Industrial Park in Binh Duong are expected to enter the market, helping Binh Duong and Long An continue to be vibrant markets in the region. At the same time, the ready-built factory market recorded a new project in the Nhon Trach district (Dong Nai province), and many new projects also started construction and are expected to be launched in 2022.

CBRE Vietnam also forecasts that the prospect of industrial real estate will be more positive in 2022, even extending the growth momentum to 2023. The industrial land rental price will have a stable increase of about 4% per year, increasing rapidly, reaching 90% and 86%, respectively.

On the side of industrial park real estate businesses, the market in the first quarter of 2022 was quite active, with billions of USD worth of investments in industrial zones across the country. For example:

  • LOGOS Viet Nam Logistics Venture established a joint venture partnership to acquire a modern built-to-suit logistics factory with a total area of ​​116,000 m2, with an investment value of up to 80 million. USD
  • CapitaLand Development also signed a memorandum of understanding to invest 1 billion USD with Bac Giang province to develop CLD’s first industrial park and urban area in Vietnam…
Industrial park real estate in 2022 still maintains strong attraction and heat

2. The attraction of industrial real estate in the North

According to Industry and Trade Newspaper, “With a high occupancy rate and attracting many foreign-invested enterprises (FDI), the Northern region is witnessing a boom in the industrial real estate market. This segment is forecasted to develop strongly in coastal provinces such as Hai Phong, Quang Ninh ….”

Thus, despite the complicated development of the epidemic situation, the attraction of industrial and industrial zones in the North still shows no signs of cooling down.

Specifically, according to the Department of Competition and Consumer Protection (Ministry of Industry and Trade), currently, the Northern region has about 63.5 thousand hectares of industrial land put into planning, with 238 industrial zones and clusters already in operation, active, and under construction. As can be seen, the occupancy rate of the Northern area is at a high level compared to before.

Besides, with the strong growth momentum of e-commerce, the logistics service segment also promises great potential. In particular, the rent of industrial land in Vietnam is still low compared to other countries, 20-33% lower than in Indonesia and Thailand.

The past year 2021, marked the boom of the industrial real estate market in the North with 

Besides, with the strong growth momentum of e-commerce, the logistics service segment also promises great potential. In particular, the rent of industrial land in Vietnam is still low compared to other countries, 20-33% lower than in Indonesia and Thailand.

The past year 2021, marked the boom of the industrial real estate market in the North with a high occupancy rate and attracted more businesses thanks to drawing the maximum amount of FDI in the country, such as Bac Giang, Quang Ninh, Bac Ninh, etc. That will create a premise and promote a high growth rate in 2022.

In particular, many large industrial park infrastructure developers have recently come to Quang Ninh, such as Amata Group, Marubeni Group, and GS E&C Group. They have shown the potential of this land in developing a new generation of industrial real estate, receiving quality FDI flows from major free trade agreements that Vietnam is and will be participated.

3. Nam Dinh Vu Industrial Park – Potential industrial real estate

Nam Dinh Vu Industrial Park is invested by Sao Do Group – a private multi-industry economic group operating mainly in construction. It is considered the only industrial park in Vietnam with an internal seaport – Nam Dinh Vu Port.

  • The scale of the Nam Dinh Vu industrial park project

The industrial park has a large turning area (300 meters), allowing it to receive ships with a maximum tonnage of up to 40,000 DWT. Covering an area of ​​1,329 ha with four functional subdivisions, including an industrial area (917 ha), non-tariff area (210 ha), seaport area; warehouse area (105 ha), and port area for petroleum and petroleum products

  • Geographical location: has a prime location.

The industrial park has a “golden” position in the Northeast economic triangle and is located in the center of the Dinh Vu – Cat Hai economic zone. Situated at the sea-facing spearhead of Dinh Vu peninsula, the industrial park enjoys all the advantages of traffic connection, the seaport system, and logistics.

  • The infrastructure of Nam Dinh Vu industrial park

Traffic, electricity, sewage treatment, garbage treatment, and fire fighting systems are equipped with modern standards to help best support businesses.

  • Good tax incentives

Nam Dinh Vu Industrial Park is considered to have the best tax incentives in Vietnam. The first four years of income tax are exempt for businesses with revenue and profit. In particular, a 7-year tax exemption supports businesses that have not yet made profits. In addition, Nam Dinh Vu IP also has many other special tax and land use incentives.

See more: Latest Industrial Park Land For Rent Update 2022