Vietnam is becoming a hotspot in the international industrial real estate market. With its strategic geographic location, strong investment attraction policies, and great development potential, Vietnam is drawing the attention of many foreign investors in this sector.
1.What is the appeal of the Vietnamese industrial real estate market?
Vietnam is in a phase of rapid industrialization, modernization, and investment attraction, creating a high demand for industrial real estate. Many large foreign corporations have chosen Vietnam as the country to establish their factories and production facilities (Samsung, LG, Foxconn…).
On the positive side, low labor costs and international trade agreements that Vietnam has signed have created a favorable environment for industrial growth. This, combined with the capital shift from China, has created many opportunities for this real estate market.
Moreover, the shift of countries after global upheavals like Covid, political changes, etc., presents an opportunity for Vietnam to be a chosen destination for investors.
2.The necessity of building an Industrial Real Estate Ecosystem?
With a market full of potential, building an ecosystem with reputable units leading the market is crucial. Creating an industrial real estate ecosystem with the mission of connecting and supporting manufacturing and business enterprises to join the global supply chain.
The support services that a leading Ecosystem aims to provide include:
(1) Consulting on investment location selection, leasing, purchasing industrial real estate;
(2) Legal procedure support;
(3) Consulting on bank loan procedures;
(4) Land leveling and smart factory construction;
(5) Providing market data on raw materials and production materials;
(6) Renting housing for industrial park management experts;
(7) Managing industrial park operations towards a green and environmentally friendly direction.
Among these, the leading Industrial Real Estate Ecosystem desires and is most committed not only to introducing investment locations but also to connecting auxiliary enterprises, supporting them in building a value chain to best serve the production and business activities of enterprises entering the industrial park.
3.Challenges and Opportunities?
Developing industrial real estate and connecting supply chains is a challenging and arduous task; however, if businesses join hands, creating synergistic strength to develop together, especially in the current difficult market context, it is an opportunity to collaborate and support more businesses.
3.1. Challenges
Speaking only of legalities, unlike residential or commercial real estate where buyers just need to wait for the handover after signing a contract with the investor, industrial real estate is a very long process. First, businesses need to identify the location for their factory, calculate investment plans, production, raw material sources, and then supply products to the market…
Investing in a factory in an industrial park is a significant venture, involving substantial asset accumulation and experience accumulation. A single miscalculation can cause everything to collapse, irrecoverably affecting the livelihoods of hundreds or thousands of workers.
The legal procedures for these real estate are also very complex. Businesses must obtain investment licenses, choose industries, meet environmental standards, design, and build factories. This is a lengthy process, taking 3 – 6 months, or even years to complete the procedures.
3.2. Opportunities
With the specific nature of industrial real estate products, the importance of connection and consulting units in developing this market and deploying investments becomes very clear, bringing many benefits to both businesses and the community.
A complete ecosystem will advise businesses on where to place their factories to be reasonable and convenient for connecting the production supply chain, guiding legal procedures to help them ensure fast progress. For instance, at the Ly Thuong Kiet Service Industrial Park in Hung Yen, where BRD Vietnam is involved in investment promotion, land rental prices are more reasonable compared to other provinces like Bac Ninh and Hai Phong, along with many supports regarding taxes, labor costs, cheap materials, easy connection with the supply chain, very convenient transportation, and a good investment environment.
BRD Vietnam is a pioneering unit participating in the Industrial Real Estate Ecosystem, aiming to create a chain of reputable enterprises and leading support to connect manufacturing enterprises domestically and internationally.
BRD Vietnam Joint Stock Company operates in the field of Research and Development Consulting, Exploitation, Business and Operation of various real estate products including Housing, Commercial Centers, Offices, Schools and Industrial Parks.
Headquarters: Floor 6 – 188 Truong Chinh Building, Khuong Thuong Ward – Dong Da District – Hanoi
Website: brd.com.vn
Fanpage: https://www.facebook.com/brdvietnam
Telephone: 0327012525
