The real estate segment will “break through” in the near future
On March 15, the Government issued a Resolution allowing citizens of 13 countries such as Germany, Korea, Japan, France… to come to Vietnam for 15 days without a visa. From the perspective of the industrial real estate market, Savills expert John Campbell, thinks this is great news for the development of the industry.
In fact, Vietnam’s manufacturing industries are recovering with rapid growth. According to IHS Markit, the PMI (procurement management index) which measures the economic “health” of Vietnam’s manufacturing industry reached 54.3 in February, while the previous month was at 53.7.
“February 2022 was a great month because it was the fifth month in a row that factory activity increased. It was also the strongest month since April 2021.
Output and new orders performed the best in the past ten months. Export orders have grown significantly. Manufacturing employment also increased for the third consecutive month,” said John Campbell.
Vietnam’s industrial production in February increased by 8.4% year-on-year, while in January, the figure was only 2.8%. Manufacturing output also improved from 2.8% in January to 10% in February.
According to Mr. John, the reopening of Vietnam is important in strengthening the confidence of international businesses and investors and bringing prospects to the industrial sector.
In addition, the Government’s support for foreign investors and the resilience and adaptability of local businesses promise the country will not only recover but also come back strong.
Right from the beginning of 2022, a number of large enterprises have invested in factories and expanded production in Vietnam.
Previously, in February, Savills Vietnam also successfully completed a factory lease deal between Framas and KTG Industrial. framas, Germany’s leading injection molding machine manufacturer, leased a 20,000 square meter prefabricated facility at KTG Industrial Nhon Trach 2, Dong Nai province. The 10-year lease signed at the end of Vietnam’s most severe Covid-19 outbreak demonstrates the unrelenting strength of Vietnam’s economy and industrial real estate in the eyes of investors. foreign.
On the side of industrial park real estate developers, the market in the past 3 months has . For example, at the end of December 2021, Gaw NP Industrial broke ground on a 16-hectare ready-built factory (RBF) project at GNP Yen Binh 2 Industrial Center. Besides, at the end of February, Vietnam’s industrial park also opened held the groundbreaking ceremony of the factory and warehouse project in Phu An Thanh Industrial Park, Long An province with a scale of 13.4 hectares.
Commenting on deals done in the early part of the year, Mr. John said: “The market has been active since the beginning of this year. Typically, LOGOS Vietnam Logistics Venture conducted the 4th M&A deal in Vietnam. Vietnam On February 17, LOGOS and Manulife Investment Management established a joint venture partnership to acquire a modern built-to-suit logistics factory with a total area of 116,000 m2 with investment value up to 80 million USD.
CapitaLand Development also signed a memorandum of understanding to invest USD 1 billion with Bac Giang province to develop CLD’s first industrial park, logistics area and urban area in Vietnam. Along with that, BW Industrial Development Joint Stock Company has acquired DEEP C Industrial Park with a scale of about 74,000 m2 in Bac Tien Phong Industrial Park, Quang Ninh province.
Mr. John Campbell said that besides the reopening plan, the active support of the Government of Vietnam for foreign investors as well as the absolute resilience and adaptability of domestic enterprises to the country. see a promising future. These factors are painting a bright picture of how Vietnam’s economy will not only recover, but can come back stronger than ever.
Talking about the situation of the industrial real estate market in the context of Vietnam’s resumption of international flights, Mr. Matthew Powell – Director of Savills Hanoi said that, compared to neighboring countries in the region, Vietnam is at a quite favorable position. Firstly, real estate prices are still relatively affordable when compared with other countries such as Malaysia, Thailand, China, or India. Although prices are on the rise, see many new projects being added to the futures supply. This will be a factor affecting the cost of land. For manufacturing enterprises, the problem lies in the workforce, including quality of workmanship, working environment and social welfare.
With many job opportunities and development, the labor cost in Vietnam is at a relatively low level in the region. Moreover, because of the relatively simple regulatory framework, businesses feel comfortable investing in and working in Vietnam.
Accordingly, the fact that reputable enterprises choose Vietnam as a strategic destination is of great significance in promoting the growth of foreign direct investment (FDI), and at the same time, increasing the prestige of Vietnam. of Vietnam in the international arena. For example, Lego currently has only 5 manufacturing plants worldwide. Therefore, the choice of this enterprise to choose Vietnam as the destination to build a new factory is a great success in attracting FDI capital.
Besides large corporations, Vietnam also attracts FDI from companies operating in the field of production and logistics. In addition, the number of industrial projects investing in Vietnam is increasing, with the goal of prioritizing the development of data centers. In terms of geography, decisive factors can be mentioned: products, labor, infrastructure, for example, location close to ports, airports or near large urban areas like Hanoi. Noi and Ho Chi Minh City.
Mr. Matthew Powell said that there are many reasons for the attractiveness of the industrial real estate industry in Vietnam. Specifically, industrial land in our country has a relatively reasonable price, there are many reputable real estate developers with appropriate legal policies. These are the factors that help attract businesses to invest in Vietnam. In addition, other factors such as population, working population, labor costs, convenient transportation network and accessibility to international ports and airports, in order to serve export import finished products and products.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
