As a new wave of foreign funds flows into Vietnam, the nation's industrial property segment needs to adapt to satisfy the demand.
Speaking at the second panel session at Vietnam Industrial Property Forum 2023, Chong Chee Keong, general manager of Industrial at Frasers Property Vietnam said, "We are seeing many emerging provinces focusing on industrialisation, with many production projects relocating to the tier-3 provinces surrounding Ho Chi Minh City and Binh Duong. Manufacturing plants and research and development centres are moving to areas such as Nghe An in Central Vietnam."
He further noted that increasing numbers of small- and medium-sized enterprises are coming to Vietnam to set up production facilities that will support giant corporations.
They set up a manufacturing base rapidly to receive and produce goods for these larger groups. Therefore, there are more rental facilities for customers, allowing them to begin operations more quickly, and more infrastructure is in place to support the needs of the market.
Le Thanh Quan, general director of the Department of Economic Zones Management under the Ministry of Planning and Investment said, "Vietnam needs a specific strategy to welcome the new influx of foreign investors into the country's industrial parks (IPs). It also requires a change in mindset, from investment attraction to foreign cooperation. However, there is also an additional challenge now, given that the new capital flows now come with greater demands than previously."
"In the past, we could develop traditional, general, and multi-sectoral IPs. However, in line with trends around the world, investors are now looking for high-tech, environmentally friendly zones. Industrial real estate investors need to carefully study the new capital flows because there are many issues to focus on," he added.
According to Trang Le, head of Research and Consulting at JLL Vietnam, many foreign investors are participating in Vietnam's industrial property sector, which improves the standards and brings the nation on par with many foreign countries.
"Vietnam is a dynamic and fast-growing market. We see nowhere else like it, as many large institutional investors are engaged in the development of industrial property in the country. The belief in the growth story of Vietnam's real estate is clear. New product lines have been implemented, such as ready-built factories and warehouses, as well as high-rise production facilities. This development has been occurring for the last five years," she added.
|Chong Chee Keong, general manager of Industrial at Frasers Property Vietnam |
|Le Thanh Quan, general director of the Department of Economic Zones Management under the Ministry of Planning and Investment |
|Trang Le, head of Research and Consulting at JLL Vietnam |
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