Many industrial zones (IZs) in Ho Chi Minh City seems to have higher rental cost to rent ready-built factory in Ho Chi Minh, Vietnam than other regions in Vietnam. There are many reasons for increase of rental cost of leasing ready-built workshop, but there are 3 main reasons:
Firstly, thanks to strategic location, Ho Chi Minh City is deemed to have undeniable advantages for many enterprises to find industrial factory for rent or other types of properties for their investment plans. Anyway, somewhere in Ho Chi Minh City shall make easy circulation of goods and distribution of goods right to not only local market, but overseas market. This city has many ports and airport. Secondly, Ho Chi Minh City are surrounded by many industrial provinces such as Dong Nai, Binh Duong, Tay Ninh, Long An, Vung Tau, etc. Many investors now are orienting plans in the South of Vietnam, especially for agricultural products manufacturing or Logistics advantages. Therefore, many industrial parks have been getting for concerns from enterprises who recently want to come to Ho Chi Minh City or some provinces surrounding for leasing or renting small or medium sized ready-built factory. There are many reasons affecting investors more interested in ready-built workshops for rent or built-to-suit factories for rent, but no matter how the trend looks like, ready-built workshop leasing price have soared up, average estimatedly at USD 4.5 - USD 4.7/m2/month depending on factory construction quality, age of workshop and specifically geographical features of each industrial park, where your wanted workshop should be rent, how far from Ho Chi Minh centre to the place you want to set up business. Finally, Vietnam is a good place which controls Covid pretty well, and Ho Chi Minh City is good cetre to set up business to the South with better cost than ever. After the Covid 19 pandemic of 2020, the demand for industrial real estate in Vietnam got increased from domestic and abroad markets. This pushes the rental price of leasing workshops and industrial land higher and higher. According to many real estate experts, the North, which attracts large corporations wishing to expand the portfolio of off-site production already in China, has an average land price increase of 6.5% over the same period last year 2020. From the beginning of the year until now, the industrial real estate market has not only witnessed the emergence of a series of new industrial zones in the neighboring provinces of Ho Chi Minh City but also been surprised by the continuous increase in land rental prices. According to the report of Jones Lang Lasalle Vietnam Company (JLL Vietnam) in 2020, Industrial parks developers announced a raise of rental to an average of USD 106/m2/rental cycle (an increase of nearly 10%) compared to the same period in 2019.
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