Office market benefited from strong growth of industrial real estate
High occupancy rate of industrial parks in Viet Nam have led to a large demand for office for lease.
Vietnam’s industrial real estate has grown rapidly thanks to the abundant cheap labor, reasonable factory construction costs and attractive investment tax incentives.
According to the Ministry of Planning and Investment, there are 326 established industrial zones with a total area of 95,500 ha. Of which, 251 industrial parks were operating with 60,900 ha, the occupancy rate reached 74%; 75 industrial parks (29,300 ha) are under construction, compensation and site clearance; 17 coastal special economic zones have a total supply of 845,000 ha with 3.6 million employees.
The lastest report of Savills Vietnam shows that due to the US-China trade war, many corporations are moving to Vietnam such as Foxcom, Lenovo, Nintendo, Sharp, Kyocera, Oasis... Those corporations operate mainly in the fields of electronics, footwear, textiles and spare parts production. It’s considered a “golden” opportunity for Vietnam’s industrial real estate.
Mr. John Campbell – Senior Consultant, Industrial Services of Savills Vietnam, said that the US-China trade tensions as well as free trade agreements (FTAs) that Vietnam had participated in created opportunities to attract investment capital, promoting the industrial real estate in Vietnam. In particular, the CPTPP and EVFTA Agreements would eliminate 99% of customs duties. Increasing trade in goods would boost the attraction of industrial real estate.
The expert explained, the rapid growth of industrial real estate had a positive impact on other markets such as office for lease, housing… Multinational corporations brought a huge team of experts and workers come to the area where they had factories, offices. It would benefit the office market and lead to a huge demand in the near future.
Perspective of Long Hau Trading Center
While industrial real estate in Vietnam is booming, many industrial parks have changed and improved to attract investors. Typically on September 2019, Long Hau Corporation (LHC) has officially launched Trading Center, located in Long Hau Industrial Park. Long Hau Trading Center has a total area of 6,000 m2, providing office and retail space with fexible leasing area.
Long Hau Industrial Park has attracted 200 enterprises, so the supply of office space in the park will meet the need of placing office close to factory of investors here. On the other hand, Long Hau Trading Center is also an ideal place for service companies. Because there are more than 20,000 experts and workers in the park, those companies can easily approach and offer their services.
In addition, there are many businesses in Long Hau Industrial Park producing retails products such as clothes, confectionery… The premises at Long Hau Trading Center can be used as showrooms or retail sales location, meeting the need displaying and trading products directly in the park.
Inside Long Hau Trading Center
Located in the heart of Long Hau Industrial Park, the Trading Center has a great advantage of ideal location adjacent to Ho Chi Minh City, only 30 minutes from Phu My Hung. The transport infrastructure in the South has been invested and developed, so the movement will be more fast and convenient.
Currently, LHC is applying many attractive incentive policies for customers when renting space at Long Hau Trading Center. Specifically, until the end of 2019, for 5-year contract, customers will be free of 2 months of rent and 3 months of management fee; contracts from 3 to less than 5 years will be free of rent for the first month and management fee for 2 months.
