Vietnam’s industrial property market has seen a new wave of investment from major companies from Germany, Denmark, or Asian countries.
n late March, Fuchs Group, a global lubricant supplier from Germany, announced its intention to expand its presence in Vietnam by renting a land plot of over 20,000 square meters at the Phu My 3 Specialized Industrial Park (PM3 SIP) at Ba Ria – Vung Tau, to build a new manufacturing plant. With a leasing contract of up to 55 years, Fuchs has shown its strong commitments in the country.
Australia-based LOGOS, a logistics real estate operator, on February 17 inked a deal with Manulife Investment Management on setting up a joint venture to acquire a built-to-suit in an area of 116,000 meters and investment capital of $80 million.
In another move, CapitalLand Development signed a memorandum of understanding (MoU) of $1 billion with Bac Giang Province to invest in one of the first urban-industrial-logistics projects in Vietnam and BW Industrial Development acquired the DEEP C Industrial Park with the size of 74,000 square meters at Bac Tien Phong Industrial Park, Quang Ninh Province.
During the first two months of 2022, Thai Nguyen Province attracted around $924 million in FDI, or 18.5% of the nationwide total investment capital so far. This included an injection of $920 million from Samsung Electro-Mechanics Vietnam, taking the total investment capital of the multinational manufacturer at the Yen Binh Industrial Park to $2.27 billion.
Overall in the January-March period, Denmark-based LEGO was the largest investor in the southern Binh Duong Province with an investment capital of $1.3 billion, accounting for 78.9% of the total FDI commitment. This is LEGO’s sixth plant in the world, and second in Asia.
The attraction of Vietnam’s industrial property market continues its strong momentum in the second quarter, with HuaLi Group (Taiwan) signing an agreement with investors at the WHA Industrial Zone 1 (WHA1) and Hoang Mai Industrial Park, Nghe An Province. The Taiwanese company plans to build a footwear factory for export, whose construction is scheduled to start in June and its completion in March 2023.
The growing demand for industrial properties in Vietnam has lifted rental fees. A real estate market report from the JLL in the first quarter noted the fee continued to expand by 8.5% year-on-year during the period, thanks to positive FDI inflows after the resumption of international flights.
