Report on Industrial Real Estate Quarter IV / 2020: Logistics’ Essential Role in Industrial Development in Vietnam

The report provides readers with an overview of the development of the  Industrial Real Estate market, Vietnamese logistics system in the last quarter of 2020. In the report, HOUSELINK researchers also give  analyses about development trends of the logistics system in general and warehouse / logistics centers in particular in the upcoming period.

Opportunities for Vietnam when US-China trade tensions escalate

The tensions between the world’s two largest economies paved the way for the shift of the global supply chain. Many large manufacturing corporations in the world with factories and production lines in China are looking for new destinations to avoid tariff barriers when exporting to the US, while reducing dependence on China.

Vietnam is one of the potential choices of the “giants” in the electronics and textiles industry with stable politics, favorable mechanisms to promote cooperation and foreign investment.. In addition, in the context of the pandemic in 2020, Vietnam will be given more priority due to the good Covid-19 control, and the economy is not frozen.

International Competitiveness

However, Vietnam’s infrastructure is the lowest among countries that directly compete for capital flows for production and investment shifting such as India, Indonesia, Malaysia, and Thailand. Logistics costs are very high, estimated to be nearly 20% of the country’s GDP. Therefore, investing to change the quality of infrastructure and logistics is Vietnam’s top priority in the current situation.

Foreign businesses take advantage of opportunities to invest heavily in the logistics real estate market

Foreseeing this development trend, more and more domestic and foreign enterprises are investing in the development of warehouse systems / logistics centers in Vietnam. In which there are some outstanding projects such as: GLP joined a venture with SEA Logistic Partners (SLP), invested in the logistics real estate sector, focusing on markets in Hanoi, Ho Chi Minh City and neighboring provinces with a total investment capital up to 1.5 billion USD; LOGOS established a joint venture in Vietnam (Logos Vietnam Logistic Venture) with an initial investment of about US $ 350 million to develop logistics facilities in the areas of Ho Chi Minh City, Hanoi, and Da Nang; GawNP invested in developing a complex project for leasing logistics in Thai Nguyen with an investment value of up to 200 million USD.

Report on Industrial Real Estate Quarter IV / 2020

Following the Report of Industrial Real Estate Quarter III / 2020, HOUSELINK publishes the Quarter IV Industrial Real Estate Report with in-depth perspective on the linkage between industrial real estate and logistics system, detailed analysis of the two-way tie between logistics and manufacturing supply chains.

Report on Industrial Real Estate Quarter IV / 2020 includes the main contents: Current status of the development of the Logistics system and its impact on the development of production activities; Analyzing the existing factory system, forecasting the trend of the development of the Logistics system in general and warehouses, logistics centers in particular.

End

The complicated changing international context, together with the Free Trade Agreements taking effect in 2020, have forced both the Government and enterprises to find a way to increase the competitiveness of Vietnamese national brands in the world. Investment in infrastructure and Logistics is an inevitable direction, bringing long-term benefits to the economy and the manufacturing industry.

Report on Industrial Real Estate Quarter IV / 2020 will be published in January 2021 with two language versions: Vietnamese and English. The report will be sent to 100,000 investors, manufacturers from many countries around the world and the entire community of more than 2,000 members on the HOUSELINK system.

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