Topic: industrial real estate

The sector attracting $20.5 billion of FDI by the end of August.

Vietnam is emerging as a leading investment destination for the semiconductor industry, attracting significant capital and interest from international corporations that directly impacts its industrial real estate sector.

Both sectors hold potential as the economic landscape recovers post-pandemic.

Cushman & Wakefield believe that, compared to Indonesia, Malaysia, and the Philippines, the price of industrial land in Vietnam is still relatively low. Along with other factors such as a stable macroeconomic situation, low inflation, and advantages in infrastructure and transportation, Vietnam therefore has the potential to become a leading industrial center in the region.

Vietnam’s logistics sector has been developing strongly, leading to high demand for logistics real estate. Timely solutions are needed, however, as supply is limited. According to a report on the emerging market logistics index, published by Agility, Vietnam currently ranks 11th among emerging countries and 4th in ASEAN.

Data from CBRE Vietnam on four cities and provinces considered key industrial centers in the south and Mekong Delta - Ho Chi Minh City and Dong Nai, Binh Duong, and Long An provinces - shows that industrial land rentals have increased 8-13 per cent over the course of the last year. The highest price was $300 per sq m per rental cycle.