Industrial real estate has been a bright spot in the market thanks to a large amount of foreign investment inflows, great potential and high absorption capacity, according to experts.

The real estate sector ranks second in foreign direct investment (FDI) attraction in the first quarter of 2023 with US$766 million, accounting for 14.1% of total FDI.

Increasing foreign investment is expected to come to industrial, logistics properties in Vietnam, pushing the growth of the sector, according to insiders.

Vietnam’s industrial real estate sector has great potential for developing more projects related to data centres, cold storages and logistics, according to John Campbell, Associate Director, Head of Industrial Services at Savills Vietnam - the largest and most experienced real estate services company in the Southeast Asian nation.

The industrial real estate sector has good prospects in 2023 due to short supply, a shift in the supply chain to Vietnam and its favourable investment policies, experts said.

The demand for industrial land for rent in Vietnam will remain high this year thanks to policies promoting investment in the country, experts said.

Vietnam’s industrial real estate in Vietnam has the potential to grow as demand continues to rise due to a shift in supply chain to the country, according to Savills Vietnam.

Indochina Kajima Development Company, a joint venture from Indochina Capital and Kajima Corporation, has recently launched Core5 Vietnam (www.c5ip.vn).

The recovery of the industrial real estate sector will be fueled by new investment waves, according to the Vietnam Association of Realtors (VARS).

The Vietnamese industrial real estate market continued to record positive signals, attracting a large amount of foreign capital.