Industrial estate rents surge in HCMC, Hanoi – VnExpress International


By Trung Tin  &nbspOctober 31, 2020 | 08:35 am GMT+7
Industrial estate rents surge in HCMC, Hanoi  Industrial estate rents surge in HCMC, Hanoi - VnExpress International kcntantao160393709167491603937 8104 9012 1603964633

An aerial view of Tan Tao Industrial Park in Binh Tan District, Ho Chi Minh City in July 2020. Photo by VnExpress/Quynh Tran.

Third quarter industrial land rents in Ho Chi Minh City and Hanoi have surged two and 1.7 times year-on-year, respectively.

This is higher than the 20-30 percent average growth seen in other localities in southern and northern Vietnam, Le Trong Hieu, director of office, industrial and logistics service of CBRE Vietnam said at a recent forum.

In HCMC, third quarter rents for industrial real estate was $300 per square meter for 30-45 years.

Some other southern localities with strong increases in industrial land rents included Dong Nai Province, up 55 percent year-on-year to $155, and Long An Province, up 80 percent to $200.

Corresponding third quarter rent in Hanoi was $260, up 1.7 times year-on-year. The northern province of Bac Giang saw its industrial land rent double to $110.

Hieu said that these “unprecedented” growth rates have been triggered by surging demand and limited supply.

He said that in the last 12 months there has been increasing demand in the electronics, e-commerce, husbandry food and fast-moving consumer goods sectors. Major international companies have established their presence in Vietnam and are expanding, he added.

Some auto assemblers are also looking expand in the central region, he said.

Experts have said that increasing investment by the Vietnamese government in transport infrastructure, effective handling of the Covid-19 pandemic and U.S.-China trade tensions have encouraged manufacturers to look to Vietnam as an investment destination as they seek to diversify their supply chains.

The trade pacts that Vietnam has signed and investment incentives that it is offering also contribute to rising demand.

There were 279 operational industrial parks in Vietnam in the first nine months with an occupancy of 71.1 percent. They created jobs for about 3.83 million workers, according to the Ministry of Planning and Investment.

Another 87 parks are under construction.

e.VnExpress

What's Your Reaction?

Cry Cry
0
Cry
Cute Cute
0
Cute
Damn Damn
0
Damn
Dislike Dislike
0
Dislike
Like Like
0
Like
Lol Lol
0
Lol
Love Love
0
Love
Win Win
0
Win
WTF WTF
0
WTF

Comments 0

Your email address will not be published. Required fields are marked *

Industrial estate rents surge in HCMC, Hanoi – VnExpress International

log in

Become a part of our community!

reset password

Back to
log in
error: Content is protected !!
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Open List
Open List
Ranked List
Ranked List
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF