Vietnam industrial property market to see positive outlook

The country’s industrial real estate enjoys more growth

Development of real estate in Vietnam. xuanhuongho/Shutterstock

Vietnam Investment Review reports the statement made by Nguyen Tran Nam, chairman of the Vietnam Real Estate Association at the Vietnam Industrial Property Forum 2019 citing that the country’s industrial real estate market continues to create confidence among foreign investors and that it strikes to become one of the most attractive investment destinations in the region for the manufacturing industry.

The outlook for the Vietnamese industrial property market is positive due to State policies encouraging more development. “If investors take advantage of these opportunities, this market will develop,” he said.

“Contributing factors such as low labour costs, reasonable rents and preferential corporate income tax have raised attraction of the domestic industrial real estate market, which is higher than the regional average,” said Nguyen Dinh Cung, CIEM director.

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However, he added that the development in this segment faced a lack of infrastructure connecting industrial zones with other infrastructure. “To ensure sustainable development and competitiveness in the future there is a need for market forecasting, systematic planning, connectivity and synchronization.”

Dang Hung Vo, a real estate expert, suggested that there is a need to continue to invest in infrastructure development to retain investors in the long term. This includes highways, deep-sea ports, improving the quality of electricity and water system, and alternative energy systems. In addition, Government should also simplify administrative procedures should also be simplified and connectivity between economic sectors need to be improved to facilitate investors.