These are what was discussed at the exclusive webinar centering on
“Industrial and logistics sectors in Vietnam – Resilience during uncertainties”
co-organized by COLORBOND® Steel and JLL, a leading professional services firm in global real estate and investment management last mid-August. The webinar attracted 110,000 online views.
According to JLL, in Q2.2021, the total area of industrial land and ready-built factories for lease in the North is 9,700 ha and 1,9 million sqm
respectively, while that in the Central region is 6,600 ha and 30,500 sqm; and in the South is 25,200 ha and 3,2 million sqm. Despite the
difficulties from the pandemic, the domestic
industrial and logistics real estate market still welcomes new investors such as GNP Industrial or KCN Vietnam Group JSC, which can be seen as signs of great market potential.
“In fact, many investors are starting to increase their logistics asset investment ratio to 40-50% while they look to allocate capital into stable
income-producing assets,” Ms. Trang added.
However, the undeniable difficulty that the
logistics system is facing now is social distancing, restrictions on movement, and the forced
classification of goods into essential and
non-essential. The logistics system, supply chain,
bution channels, and retail channels are under severe pressure to meet social security policies and ensure efficient operation.
FMCG, e-commerce, pharmaceuticals, and cold storage are a few sectors that will have a high demand for additional warehouse space near urban areas. On the other hand,
automobiles, heavy machinery, and chemical industries may look for short-term rent in
suburban areas.
With investors’ increasing demand, focusing on sustainable, modern, and high-quality projects, NS BlueScope Vietnam constantly innovates and offers high-quality products such as
COLORBOND® Ultra steel integrated the
breakthrough ActivateTM technology with the microstructure of four phases that greatly
improves corrosion resistance, enabling projects to withstand the test of time, meeting the trend of sustainable construction.
Investors might remain cautious, critically
scrutinizing portfolios before deploying capital for investments. However, demand for
e-commerce and pharmaceutical services has ensured that Vietnam’s industrial and logistics real estate sector remains the most resilient asset class in 2021.
According to JLL, it’s imperative for Vietnam to continue investing in infrastructure, including highways, utility networks, and renewable energy, to enter the next phase of the industrial and logistics cycle and become more
competitive amongst regional peers. Most
importantly, Vietnam also needs to improve the time and costs of its cross-border trade
processes significantly.
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