The growth of Vietnam’s industrial real estate market benefits greatly from merger and acquisition (M&A) deals and new supplies, Savills Vietnam Industrial Services Manager John Campbell has said.
The market is immune from COVID-19 as many new industrial parks (IPs) have been recently opened and major projects begun operations, despite the complex developments of the ongoing pandemic.
New deals have been seen this year, notably Singaporean real estate solutions provider Boustead Projects acquiring 49 percent of shares in the Yen Phong IP in northern Bac Ninh province, at a cost of some US$6.9 million.
Another was a joint venture between two major logistics and industrial real estate management firms - ESR Cayman Limited and BW Industrial Development JSC - to own and develop 240,000 sq m at the My Phuoc 4 IP near Ho Chi Minh City.
Various projects in the pipeline also affirm the market’s vibrancy.
Figures from the Ministry of Planning and Investment show that Vietnam had 370 IPs on a total area of 115,200 ha as of the end of the first quarter of this year, which helped create approximately 3.6 million new jobs.
Dozens of industrial projects in 13 cities and provinces received approval during the period.
Bac Ninh is home to the largest number of upcoming projects, with five new IPs. Of note, Que Vo III will have an additional 208.54 ha with a combined investment of US$120.87 million.
New IPs will also come into operation elsewhere, such as Vinh Phuc in the north, Quang Tri in the central region, Dong Nai in the south, and Long An in the Mekong Delta.
According to Savills Vietnam, new M&A deals and supplies are still on the rise.
Leading industrial production projects came in May from investors in Hong Kong (China) and Singapore to the two northern provinces of Quang Ninh and Bac Giang.
Efforts made by the Vietnamese Government and businesses in realising the dual targets of curbing the spread of COVID-19 and maintaining operations are hoped to facilitate industrial production, experts said.