Sent to friends

Foreign investors boost demand of industrial park land

(09:31:01 AM, 25/09/2017)

According to a report on Vietnam’s real estate market carried out by JLL, foreign investors, especially those from Japan, Korea and Taiwan, continue to expand their investment in Vietnam. It causes a positive impact on the demand for factories and industrial land.

Specifically, the survey on industrial zones in the South East (HCMC, Dong Nai, Binh Duong, Ba Ria - Vung Tau, Tay Ninh, Binh Phuoc) carried out by JLL showed that this area has 109 industrial parks, accounting for 34% of the country. By the end of the second quarter of 2017, the total land area of the industrial zones in this area reached about 38,308ha, of which the area of land for lease is 25,556ha, increasing about 2.8% compared to the fourth quarter of 2016 (Binh Duong and Dong Nai are leading provinces in leasing industrial land.

By the end of second quarter of 2017, land renting price in the South East region increased by 2-5 USD per square meter compared to the fourth quarter of 2016. Among the surveyed provinces, the land renting price in the industrial zones in Ho Chi Minh City is the highest with an average of 140 USD per square meter per period (equivalent to 3.174 million VND). The other locations have lower renting price, ranging from 30 - 100 USD per square meter per period.

According to JLL forecasts, the occupancy rate and renting price of the industrial land market in the South East are expected to continue to increase, thanks mainly to foreign investment.

In the trend of opening now, the investment in Vietnam is increasing, especially enterprises who want to set up production facility to take advantage of cheap labor force, especially foreign businesses. Therefore, the land of industrial parks will become more expensive and creates a new wave in the development of industrial park real estate.