Logistics market: Rental rates will increase in the coming years
Non-Occupancy rate decreased
Specifically, in the North, CBRE said that the warehouse market will be concentrated around the capital Hanoi and the coastal provinces including Hai Phong. These areas are the most crowded population in the region, with potential customers and abundant human resources. In addition, access to seaports helps to develop industries.
The North is receiving the attention of many investors of foreign industrial parks. In the North, with limited warehouse supply, rental prices are expected to increase 2.0% in 2018 and will rise by 1.5% in 2019 and 2020. Vacancy rates are expected to decline from 22% in 2018 to 19% in 2020..
According to the National Database on Enterprise Registration, by the end of March 2018, there were 296,469 enterprises registered in the logistics industry, mainly in the region. Advantages: Red River Delta (38.8%), South East (33.8%), North Central Coast and Central Coast (14.2%), midland and region the North (5.6%), the Mekong River Delta (5.2%), the Central Highlands (2.4%).
The size of the registered capital of logistics enterprises is still limited, up to 90% of enterprises with registered capital of less than 10 billion.
CBRE analysis is explaninly backed in the case of Hanoi, Hai Phong and Bac Ninh. As the center of the Northern Region, Hanoi plays an important role in the development of industrial parks and logistics. In the new master plan, Hanoi will focus on high-tech industries including IT, software, data centers, automation ... and related industries including warehouses and logistics for these industries.
As a result, warehouses and logistics services will be concentrated in clusters around the city with large and cheap land plots and well connected with the northern industrial centers such as Bac Ninh, Hai Phong and Vinh Phuc. Therefore, the warehouse market will develop with better products such as distribution centers, automatic warehouses and high quality as a connection point to the Hanoi market.
Hai Phong plays an important role in the industrial park in the north thanks to the existing Hai Phong port and Lach Huyen deepwater port which is capable of receiving up to 100,000 DWT. In addition, expressways are under construction and ready for completion. Hai Phong connects better to industrial centers in the north. Hai Phong attracts big names from logistics, automotive, electronics, pharmaceutical, shipbuilding, petroleum and textiles.
Bac Ninh has the potential to become the industrial center of the region as industrial parks, warehouses and factories are moving away from Hanoi. At the same time, Bac Ninh has good connections with Hai Phong port and Noi Bai airport thanks to the newly built infrastructure system. Logistics services are the main stimulus for the warehouse market in Bac Ninh.
The Demand in South is higher
In the south (including HCMC and neighboring provinces), CBRE estimates that the site is well connected by highways and inland waterways, seaports and international airports. With its convenient location, near the logistics center of the region such as Hong Kong, the South area always leads the Vietnamese market in the industrial segment.
Warehouse rents in this area are expected to increase by 4.0% in 2018 and 3.5% in 2019 and 2020. The possibility of higher prices in the south due to high demand from retailers, 3PLS (providing third-party logistics or contract logistics) and manufacturers. At the same time, better supply came from big companies such as Gemadept, Saigon Newport and Saigon Depot. However, the South will also have a higher vacancy rate, about 20% in 2018 to 2020.
According to CBRE's analysis, which is the hub for major airports and seaports, HCM City accounts for 16% of Vietnam's export turnover in 2017. This leads to high demand for warehouses, factories and land. industry from foreign investors. The increase in e-commerce and domestic consumption is the main factor affecting the current demand.
"At present, the import-export scale is over 500 billion USD to see our" pie piece "of logistics is large, so the development of logistics services today must be aimed at dual goals. In addition to perfecting the mechanism for development, it is necessary to expeditiously cut costs and improve competitiveness because logistics is an important contributor to the economy, especially in the context of the economy. open as high as today ", Minister of Industry and Trade Tran Tuan Anh.