Industrial real estate to boom in 2025

Experts at the event noted that Vietnam’s industrial real estate market showed signs of slowing down in 2024, yet was expected to boom again in 2025.

The event featured leading industry experts, over 300 infrastructure investors, and consulting firms from both the domestic and international markets, along with more than 50 foreign direct investment (FDI) companies that have already planned or are planning to invest in Vietnam.

Notably, this event featured the participation of LOGOS, one of the most experienced investors in infrastructure development with numerous major projects worldwide. Trent Iliffe, co-founder of LOGOS, and Glenn Hughes, CEO of LOGOS Vietnam, plus several other key representatives graced the event.

Additionally, other prominent participants included representatives from the industrial park infrastructure investors Amber Industrial and Gilimex Industrial, construction contractor Andes E&C, BIDV, HPS Logistics, and Jiaxin Industrial Vietnam.

All gathered to discuss and share diverse perspectives on Vietnam's industrial real estate market in 2024.

The event provided valuable opportunities to update participants on the latest trends in the industrial real estate market. The forum became a gathering point for leading experts to share valuable information and practical experience in industrial real estate investment.

Vietnam’s industrial real estate market shows positive data in 2024, according to VNIC.

As of August 2024, Vietnam added 4,750 hectares of industrial land, a 5 per cent increase compared to the same period in 2023. The average occupancy rate in industrial parks reached 75 per cent, up 2.6 per cent on-year.

Following a wave of investment from 2019 to 2023, land rental prices have risen steadily. As of 2024, the average rent reached $156 per square meter, a 6 per cent increase from 2023.

The industrial warehouse market also showed promising signs, with an average national occupancy rate reaching 77 per cent, up 4 per cent from 2023.

Rental prices continued to increase, with the average warehouse rent in 2021 being $4.30 per square metre per month, rising to $4.60 in 2024.

Major cities like Hanoi reported rates as high as $6.50 per square metre per month, while Ho Chi Minh City ranged from $5.50 to $6.50. Competitive provinces like Bac Ninh and Long An recorded prices of $5.60 and $4.80-6.20 per square metre per month, respectively.

Do Hong Quan, CEO of VNIC, noted that the industrial real estate market in Vietnam continues to show optimistic signs in 2024. However, the wave of investment is showing some signs of stagnation.

"This can be partly explained by the impact of global economic and political instability," Quan said.

Advocating this mindset, Niu Qiang, CEO of China Chuhai Group, said that businesses were awaiting clearer signals from the global political landscape.

“Although many are holding back for now, it is expected that in late 2024 and into 2025, a new wave of manufacturing shifts from China abroad will surge. Vietnam, with its significant investment advantages, remains a standout destination,” said Qiang.

Forecast for industrial real estate in 2025

The signing ceremony marking long-term strategic co-operation between LOGOS and VNIC

The industrial real estate market is expected to boom in 2025. To meet ever-burgeoning demands, Vietnam is projected to add approximately 15,200 ha of industrial land and over 6,000,000 sq.m of warehouse space between 2024 and 2027.

At the event, Glenn Hughes, CEO of LOGOS Vietnam, said that LOGOS was committed to providing the highest quality warehouse solutions, strategically located for convenient transportation. The company integrates environmental, social, and governance practices into its infrastructure development, ensuring a comprehensive, high-quality customer experience.

The National Industrial Real Estate Forum 2024 reflected the strong growth of this sector, with rapid expansion in industrial parks and key infrastructure projects.

Reports at the forum highlighted the pivotal role of industrial real estate in enticing foreign direct investment and boosting domestic production.

In the forthcoming years, this market is expected to continue its robust growth, as Vietnam becomes an increasingly important link in the global supply chain.

The event concluded with the signing of a strategic partnership between VNIC - Vietnam Investment Consulting and LOGOS, a reputed logistics property specialist in the Asia-Pacific.

This collaboration aims to enhance investment consulting and industrial real estate leasing in Vietnam. The partnership not only opens new development opportunities for both sides, but also significantly contributes to improving the investment environment, attracting both domestic and international businesses to Vietnam's promising industrial real estate market.

By combining VNIC’s strengths in investment consulting and LOGOS' market expertise and infrastructure development capabilities, the partnership promises comprehensive and effective solutions for partners and investors alike.

Experts delve into outlook of Vietnam's industrial real estate market at VIPF 2024 At the first panel discussion of the Vietnam Industrial Property Forum (VIPF) 2024, experts discussed the long-term prospects, growth potential, and development trends in Vietnam’s industrial real estate market, and the demand from multinational corporations.

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