Report on Industrial Real Estate Quarter I / 2021: Transportation and logistics market fluctuates in the new economic context

Following the contents of the Industrial Real Estate Report released quarterly earlier, HOUSELINK developed the Industrial Real Estate Report 1st quarter 2021 with an in-depth perspective on the linkage between industrial real estate and the logistic system , detailed analysis of the two-way tie between logistics and manufacturing supply chains.

Investment in transportation market fluctuated dramatically

At the beginning of 2020, due to the common effects of the COVID-19 epidemic, investment in transportation and warehousing activities decreased sharply, even the value of new investment registration in this field in the third quarter of 2020 only reached 10 million USD – approximately the value of new investment registration in the first quarter of 2018.

The value of investment in the transportation and storage sector increased dramatically at the time of Q4 / 2020 and Q1 / 2002, up 237% and 360% respectively over the same period last year. The big “players” registered to invest in this field must include LOGOS, MAPLETREE, SLP, BW, etc. These businesses focused their resources on investment in developing logistics warehouses. This showed that transportation and warehousing in general and logistics in particular are increasingly interested and invested in development in the coming time.

Logistics for production activities

As analyzed before, the logistics warehouse system is currently serving mainly for production activities.

HOUSELINK survey shows that the enterprises of electricity – electronics, agriculture – food, medicine, and plastic are the ones with the most demand for renting warehouses. Accordingly, the largest demand for warehouse rental comes from industrial equipment manufacturers (50%), followed by businesses in the electricity, pharmaceutical and plastic sectors with a rate of approximately 30%. Enterprises in agriculture and animal feed, electronics, food and beverage have a lower response rate of demand for warehouse space, ranging from 20-30%. However, HOUSELINK data shows that businesses in this field have a very large investment scale, so the demand and potential for using warehouses is very large.

New content: Legal article related to investment in Industrial Real Estate

In this Report on Industrial Real Estate, HOUSELINK added a number of relevant legal contents with the cooperation and content consultancy from Asia Legal. This content will update new regulations, contributing to providing enterprises with a practical and comprehensive perspective when investing in developing and operating warehouses in Vietnam.

HOUSELINK provides a free quarterly Industrial Real Estate Report. Sign up here to read the Vietnam Industrial Real Estate Market Detailed Report.

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