Industrial Park Situation

Update on Vietnam’s Industrial Real Estate Market in 2022 according to the Ministry of Planning and Investment According to the information released by Vietnam’s Ministry of Planning and Investment, the country’s industrial real estate market in 2022 saw the following updates:

1. Approved Industrial Parks as of the end of 2022
   1. Established industrial parks: 411 (South: 42%, North: 36%, Central: 22%)
   2. Under compensation and land acquisition: 152 industrial parks
   3. Total: 563 industrial parks
2. Types of Industrial Parks (as of the end of 2022)
   1. Land transfer: 47%
   2. Leased factories/warehouses: 53%  ★ In 2021, land transfer accounted for 51%
3. Occupancy Rates of Industrial Parks
   1. North: 83%
   2. South: 84%
   3. National average: 70.9%
      • In the South, especially in Ho Chi Minh City, Binh Duong, and Dong Nai provinces, there is very little vacant land left in industrial parks, making it difficult for companies to purchase land and build their own factories. However, the development of leased factories and warehouses by major developers is progressing, with many properties currently under construction, providing more options to choose from.
      • In the South, some industrial parks offer rental factories with small units of a few hundred square meters, but in the North, large units of 1,500 to 2,000 square meters or more are more common.
4. Land Prices in Industrial Parks
   1. In the North, even in new industrial parks developed by major foreign developers, the land prices range from $130-$140 per square meter, and there are almost no industrial parks that exceed $200 per square meter.
   2. In the South, the land prices in industrial parks in provinces near Ho Chi Minh City, such as Dong Nai, Binh Duong, and Long An, are in the range of $200-$300 per square meter, approximately double the prices in the North.
      • In Dong Nai province’s Industrial Park A, the land price 20 years ago was $20 per square meter, but now it has increased 10-fold to $200 per square meter.
      • In Long An province’s Industrial Park L, the land price 14 years ago was $40 per square meter, but now it has increased 6.5 times to $260 per square meter.
      • ⇒ Therefore, the price of industrial land does not decrease even when the economy is in recession.
5. Rental Factories and Warehouses – Rental Rates:
   • In industrial parks with well-developed infrastructure catering to foreign companies, the standard rental rates are typically $5.00 to $6.00 per square meter, both in the North and the South.