According to Colliers' Market Research Report for the first quarter of 2023, the industrial zone real estate segment is recording price increases in the context of limited new supply.
Rent in Ho Chi Minh City recorded the highest level in the country
As noted, the average land rental price in the industrial zone real estate market in Ho Chi Minh City in the first quarter of 2023 was the highest in the country, averaging $240/m2/term and the occupancy rate reached 95. %. The land fund in this area is becoming scarce along with the development orientation of centrifugal industrial zones, creating favorable conditions for neighboring markets such as Binh Duong, Dong Nai, and Long An to develop.
In the first quarter of 2023, these satellite markets recorded an average rental price of about 100 - 250 USD/m2/term and continued to focus on infrastructure development, increasing connectivity with neighboring areas and local governments. policies to attract FDI investment, and increase competition in these areas.
Similarly in Hanoi, the average land rental price recorded an increase of 5-10% compared to the previous quarter, to about USD 160/m2/term. Some areas in Hanoi recorded rental rates of 300 USD/m2/term, showing an increase in rental demand while the current supply in the area is not responding in time. On the other hand, the occupancy rate in industrial zones has reached 92%.
The appearance of enterprises such as Foxconn, Tenma, and Goertek... in satellite areas of Hanoi also shows that the demand for industrial park rental enterprises in the semiconductor industry is increasing.
Particularly in Da Nang, the industrial park market recorded that the average land rental price did not change significantly compared to the previous quarter, reaching 93 USD/m2/term and the occupancy rate was stable at 91%.
It is expected that 45 minutes of funding commitment from international partners and donors, 5 memorandums of understanding on investment cooperation, and 16 investment certificates worth about 8 billion USD will be awarded and signed at the Association. It is recommended to implement the Government's 2023 Action Program, contributing to the sustainable marine economic development of the North Central region and South Central Coast in general and the industrial park real estate market of Da Nang. Nang in particular.
Supply is scarce
In Ho Chi Minh City, the supply of industrial parks in the first quarter of 2023 did not change much, mainly coming from existing industrial parks. In 2023, Ho Chi Minh City's hi-tech parks will continue to be a market attracting foreign investment flows.
At the meeting with the Management Board of Ho Chi Minh City Hi-Tech Park (Thu Duc City), Boeing Corporation shared its plan to choose Vietnam as a strategic country and develop its supply chain in the region. Southeast Asia, showing the potential to attract investment in the high-tech zones of this region.
In Hanoi, to meet the needs of the industrial park along with the region's industrial development orientation, including the electronics industry, the mechanical engineering industry, etc., Hanoi plans to add four new industrial parks including four new industrial parks, including: including Soc Son clean industrial park, Dong Anh industrial park, Bac Thuong Tin industrial park, and Phung Hiep industrial park, the planning is expected to last from this year to 2025, providing nearly 8,900ha of industrial land for the market. school. Besides, Ha Nam province has recently been approved by the Government to plan four new industrial zones, and the supply of the area is expected to increase by about 940ha of industrial zone land for lease in the near future.
Meanwhile, in Da Nang, the market did not record a new supply. With a development vision for the whole year of 2023, Da Nang issued Plan No. 12/KH-UBND on implementing the 2023 theme "Focus on unleashing resources, attracting investment, maintaining economic growth and ensuring social security", focusing on removing difficulties and creating favorable conditions and attracting investment activities.
Green industrial park real estate development trend
Colliers believes that the green, smart, and sustainable orientation, using 4.0 technology in the construction and management of infrastructure and technology is gradually becoming a development trend in the real estate industry in general and the market. industrial park real estate market in Vietnam in particular. Previously, the eco-industrial park model was first applied in Deep C industrial park (Hai Phong) in 2021, the project uses renewable energy from wind for industrial production activities, saves costs, and eliminates negative impacts on the environment, towards a circular economy. This is also a factor contributing to the strong attraction of Vietnam's industrial park real estate market.
In addition, Becamex IDC (Binh Duong, Vietnam) and Sembcorp Development LTD Company (Singapore) recently signed a memorandum of understanding on investment cooperation and the development of 5 green and smart-oriented industrial parks. and sustainability in the Vietnamese market, showing the trend of environmentally-friendly industrial parks increasingly focused on investment and development.
Along with that, the global race to produce chips and electric motors is also expanding with Southeast Asian countries, in which Vietnam is considered one of the potential manufacturing centers of electronic components and chips in the region. sector when recording the participation of a series of world-leading investors and manufacturers of semiconductor components, such as Intel, LG, Samsung, Foxconn, Canon, Panasonic, Electronics, Nokia, Meiko, Apple, Microsoft, or Qualcomm.
Vietnam possesses the advantage of the region's strategic economic location, stable socio-political environment, good labor force, and high-quality human resources along with a large export market when participating in the Agreement. free trade agreements (FTAs), leading the Vietnamese market to gradually become an investment target of investors and manufacturers in the global chip production race.