Hanoi (VNA) – The industrialreal estate market in the south was vibrant and thriving in the third quarter of 2023, with the rentalarea reaching 143,000 sq.m, up 2.4 times compared to the previous quarter.

Many industrial parks have readied their supplies to welcome foreign direct investment (FDI) capital flows intoVietnam.

According to Cushman & Wakefield in Vietnam, the demand for rentingready-built factories and warehouses in southern localities is diverse, comingfrom many industries such as textiles, chemicals, and electronics.

In the quarter, factories for rent in Dong Nai, Binh Duong, Ba Ria - Vung Tau, andLong An recorded the highest absorption rate. Dong Nai led with nearly60% of the total absorption.

The occupancy rate of industrial factories and warehousesfor lease in the southern region has reached 74%, with an average rental price of 4.7 USD/sq.m/month. High-demandlocations such as Dong Nai and Ba Ria - Vung Tau have experienced the highestannual growth, approximately 2.5%.

In the optimistic trend of the market, some companiesoperating in supplying industrial park infrastructure have reported arelatively high warehouse occupancy rate. 

For instance, warehouses for lease in industrial parksmanaged by Sonadezi Corporation and its member companies have recorded anoccupancy rate of 92%, attracting approximately 130 million USD in FDI and720 billion VND (nearly 29.7 million USD) in domestic direct investment (DDI).

InDong Nai, 33 industrial parks have leased a total of 6,024 ha,reaching nearly 86% of the available land for rent. As of November 2023, DongNai attracted approximately 1.037 trillion USD in FDI and over 2.64 trillionVND in DDI, up 48.2% and 32.15% of the set plan, respectively.  

So far this year, the leased area reached 24.73 ha, withprojects primarily renting warehouses for manufacturing and business purposes.

Meanwhile,Ba Ria – Vung Tau lured 751 million USD of FDI from new projects, and 503million USD from capital-added projects, respectively up 2.78 times and 15.3% comparedto the same period last year.

The total supply of industrial factories and warehouses inthe south is forecast to rise by about 2.5 million sq.m by 2026. This is expectedto be new motivation for the market, especially in the context of industrialland available for lease has become increasingly scarce./.