Demand on the rise for high-quality ready-built factories

September 06, 2021 | 15:33
Because of the shortage of industrial land in a prime location and high rents, ready-built factories have become the first choice of investors thanks to the advantages of saving time and costs, while meeting the rising demand for high-quality factory and warehouse spaces.
Demand on the rise for high-quality ready-built factories

Ready-built factories of KTG Industrial in Bac Ninh province’s Yen Phong Industrial Park

According to CBRE Vietnam, the supply of ready-built factories and warehouses for lease as of June 2021 has increased significantly over last year, by 8-10 per cent. Supply is projected to grow strongly in the next two years.

The ready-built property segment in industrial real estate is expected to boom thanks to new changes in both supply and demand. In fact, the fourth wave of COVID-19 outbreak has changed the shopping and consumption habits of consumers. This is a favourable condition for the growth of the e-commerce industry, leading to the development of warehouses and logistics.

Huge volumes of goods must be stored and transported locally and worldwide. Therefore, the expansion of storage space and distribution networks of e-commerce companies now dominates the demand for warehouse rental.

On the other hand, many manufacturers are moving out of China to be less dependent on a single market. Vietnam stands to benefit from this trend thanks to its convenient location, open investment environment, and political stability, which will attract more and more foreign investors.

Accordingly, ready-built factories and warehouses have been considered the trusted choice for investors, especially small- and medium-sized enterprises (SMEs) and foreign businesses who first explore the market. Renting ready-built factories helps reduce costs and put into operation soon.

Growing quality of factory and warehouse space

To meet the increasing requirements of manufacturers, for-rent industrial developers are making improvement in project development. One of the pioneers is KTG Industrial with their Factory 4.0, aiming to create more convenience for customers during leasing, production, and operation.

Factory 4.0 applies VR technology so that customers can visit the workshop space anytime and from anywhere. At the same time, a comprehensive support service package including legal, human resources, accounting, and other fields helps investors to shorten preparation time, quickly deploy operations, reduce risks, and save on management costs.

In response to a huge wave of investment re-location and new sourcing of manufacturers, many foreign investors enter Vietnam's industrial real estate market through M&A. They offer high-quality ready-built factories and warehouses in a wide variety of sizes and specifications.

For example, the “handshake” between Boustead Projects (Singapore) and KTG Industrial is predicted to bring a great change to the market. Their come up together not only provide best-in-class solutions in industrial and logistics space, but elevate industrial assets to world-class standard.

Dang Trong Duc, CEO of KTG Industrial said: “In the third quarter of 2021, KTG Industrial will launch ready-built factories at Nhon Trach 2-Nhon Phu Industrial parkin Dong Nai province. The project is co-developed by Boustead Projects which offers high-quality ready-built and built-to-suit factories.”

By Nguyen Huong

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