CPTPP benefits Vietnam’s industrial property
Updated : Wednesday, May 16, 2018 9:04 AM (GMT+0700)

Vietnam’sindustrial real estate sector stands ready to take off after the Comprehensiveand Progressive Agreement for Trans-Pacific Partnership (CPTPP) comes intoeffect, experts have said.

 
Vietnam’s industrial real estate sector stands ready to take off after the CPTPP
takes effect - Photo: cafef.vn

France’s FM Logistic, aleading group in international supply of warehouse, transport, and packaging,has been successful in renting and purchasing land in the northern region withthe advice from real estate services company Cushman & Wakefield.

As part of the firm“Ambition 2022” plan to expand geographical coverage to support customergrowth, FM Logistic launched a 5,000 square-metre tri-temperature logisticswarehouse in Bac Ninh province while purchasing an additional 50,000 squaremetres in the northern region to build the first European-standard storage inVietnam.

According to Director ofOperations in Asia for FM Logistic Stéphane Descarpentries, FM Logistic isstriving to become one of the leading logistics providers in Vietnam by 2020.

While holding that Vietnam’slogistics sector is enjoying thriving development, with vast expansions ofleased space by many famous names in the world, Managing Director of Cushman& Wakefield Vietnam Alex Crane, said that it’s fantastic time for theindustrial and logistics businesses.

Meanwhile, Stephen Wyatt,Country Head for Jones Lang LaSalle (JLL) Vietnam, believed that Vietnam isgrasping the attention of foreign investors with 80 percent of the investmentspoured into the industrial and manufacturing sectors.

Many investors are shiftingtheir capital from China to Vietnam as Vietnam has sound planning forindustrial parks and the Government is considering the establishment ofspecialised economic zones which offer preferential taxes for corporations, hestressed.

According to the JLL’slatest report, more than 18,000 hectares of industrial land in the north willbe put into use by the end of 2020.

Currently, Hai Phong cityand Bac Ninh province are the two localities that have the highest number ofindustrial parks in the country. They are also the largest attractors ofindustrial investment in the northern key economic region.

Meanwhile, the centralregion is expected to be an emerging playground that will attract a large poolof investors in 2018.

Strong growth ofmanufacturing and consumption will spur the surge of demands for warehouses inthe country, according to the CBRE Vietnam. Warehouse rental fees are said torise 1.5 percent to 4 percent per year in the coming time.

Good transportinfrastructure also makes the southern localities like Ho Chi Minh City, andBinh Duong, Long An and Dong Nai provinces, become a magnet for foreigninvestors. Land rental fees at the southern industrial parks have picked up 3percent from the same time last year.

Vietnamese depot market willbe thriving thanks to the expanded operation of e-commerce giants like Alibaba,JD.com and Tencent together with strong growth of convenience stores and retailmodels developed by such large firms as Lotte and Aeon.

Source:VNA  

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