An industrial park in northern Hai Phong City. Photo by courtesy of Becamex IDC.
Rent for industrial land in northern Vietnam hit a record $102 per square meter in the third quarter thanks to rising demand from manufacturers moving in from China.
It was 7.1 percent higher year-on-year as most industrial park developers in the north maintained strong bargaining power thanks to Vietnam’s potential as one of the most sustainable manufacturing hubs, according to a report by Jones Lang LaSalle (JLL).
Average occupancy was 74 percent, up 1.6 percent from the first quarter, as manufacturers sought to diversify their manufacturing portfolios outside China, especially in high-tech industries, the report said.
JLL expected there to be sufficient supply of industrial lands in Hai Phong City and Bac Ninh Province for the upcoming wave of investment.
There are plans to expand or build new parks mostly in the provinces of Hung Yen and Hai Duong, it said.
“The supply of industrial land in the north is expected to rise further in the next five years to capitalize on the increasing demand.”
Despite difficulties caused by the Covid-19 pandemic, such as travel restrictions that prevent investors from site inspections and direct meetings, there remains great interest in the country since it is considered a new regional industrial powerhouse, it added.
Park developers have invested in online platforms to include virtual tours and hosted webinars so that potential tenants can evaluate and secure land.