Electronics, computers, optical products main demand sources for northern Vietnam ready-built-factories
The developers of industrial parks (IP) in the Northern Key Economic Region (NKER) are rushing to source land in order to take advantage of the investment wave in Vietnam, write Cushman & Wakefield analysts.
The northern IP land market continues to be the spotlight of investment attraction with up to 228 ha absorbed in the fourth quarter of 2023.
In the quarter, a new supply of IP land covering 121 ha was registered in Thang Long II IP (expansion phase 3) in Hung Yen province.
Hai Duong and Hung Yen are the two leading provinces in terms of net absorption, acccounting for 33% and 27% respectively. Amid strong demand and sentiment, the average primary price of IP land has continued on an upward trend, reaching $125/square meter/lease term, an increase of 1.4% quarter-on-quarter and 10% year-on-year.
Three new ready-built factories (RBF) projects were launched in Q4/2023, namely BW Nam Dinh Vu 2 and DHP Nam Cau Kien in Hai Phong city, and FPV Industrial Centre Yen My – Phase 1 in Hung Yen province, bringing 89,200 square meters into the market.
Similar to the IP land segment, demand for RBF surged this quarter, with a net absorption of 161,000 square meters. Hai Duong, Hai Phong and Vinh Phuc led in terms of RBF demand with 39%, 27%, and 22%, respectively.
Electronics, computers, and optical products were the main demand sources for RBF. Rents of RBF remained stable quarter-on-quarter, at $4.9/square mater/month, but increased 3.9% year-on-year.
The market welcomed new RBW supply of about 116,500 square meters from two projects, namely IDEC Logistics Center in Bac Ninh province and Mapletree Logistics Park Hung Yen Phase 3.
As challenges from global economic uncertainties remain, the net absorption of RBW in the NKER was recorded at about 32,300 square meters, decreasing 71% quarter-on-quarter. The majority of RBW leasing demand this quarter came from the manufacturing sector. Hai Phong led in terms of net absorption with 37% in total.
The average rent reached $4.6/square meters, stable quarter-on-quarter and increasing 1.4% year-on-year. Therefore, a significant IP land new supply will enter the market in the 2024-2026 period, at about 5,500 ha across seven provinces in the NKER, namely Hanoi, Hai Phong, Quang Ninh, Hai Duong, Hung Yen, Bac Ninh and Vinh Phuc.
The northern region will welcome a future RBF supply of about 1 million square meters in the period 2024-2026. Demand for RBF is expected to be sustained by the manufacturing sector, particularly supporting enterprises in the electronics and automotive sectors.
After a period of continuous new supply, there will be less supply of RBW in the 2024-2026 period than in the 2021-2023 period, with just only 700.000 square meters entering the market.
- Read More
Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE
Singaporean fund Platinum Victory Pte. Ltd. has registered to buy more shares of Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE) to achieve the vetoing power in the latter.
Finance - Thu, November 21, 2024 | 11:29 am GMT+7
Posco keen on investing in Vietnam's $2.2 bln LNG power project
South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.
Energy - Thu, November 21, 2024 | 10:42 am GMT+7
Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta
The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.
Industries - Thu, November 21, 2024 | 10:31 am GMT+7
Vietnam startup expert closes Monkey in Black coffee shop
Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.
Companies - Thu, November 21, 2024 | 8:16 am GMT+7
Vietnam-Singapore ties set for elevation to comprehensive strategic partnership
Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.
Politics - Wed, November 20, 2024 | 8:16 pm GMT+7
Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders
Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.
Companies - Wed, November 20, 2024 | 6:17 pm GMT+7
E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam
E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.
Finance - Wed, November 20, 2024 | 5:37 pm GMT+7
Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec
In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.
Companies - Wed, November 20, 2024 | 3:52 pm GMT+7
Central Vietnam province okays $88 mln automobile part project
Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.
Industries - Wed, November 20, 2024 | 3:44 pm GMT+7
Thai packaging firm Thantawan Industry makes inroad into Vietnam
Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.
Industries - Wed, November 20, 2024 | 3:34 pm GMT+7
Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC
Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.
Companies - Wed, November 20, 2024 | 2:29 pm GMT+7
Pegatron to quadruple workforce at $800 mln project in Vietnam
Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.
Industries - Wed, November 20, 2024 | 2:03 pm GMT+7
Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park
WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.
Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7
Indonesia, Brazil sign cooperation deals worth $2.65 bln
Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.
Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7
Nusantara not yet feasible as Indonesia’s capital city: authorities
Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.
Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7
Malaysia’s Halal industry to make up 10.8% of GDP by 2030
Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).
Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7