In recent years, the industrial real estate in Vietnam has witnessed sharp growth. The rise in foreign investment, the need for production expansion, and the supply chain trends have promoted the demand for rental factories significantly. New industrial parks are continuously being constructed, providing modern and convenient infrastructure for businesses, offering a dynamic business environment, and creating many opportunities for both domestic and international investors and enterprises.

1. Overview of Vietnam industrial real estate

Industrial real estate has become popular. The rapid development of industrial parks and ready-built factories has attracted the attention of many investors, both domestic and international. According to CBRE Vietnam, the development of industrial land in the first half of 2023 in the North and the South reached 386 hectares and 397 hectares respectively, which is higher than in 2022.

Industrial real estate in Vietnam has become popular

This growth not only illustrates the significant demand from enterprises but also demonstrates the flexibility and responsiveness in the industrial real estate market. The average rental rates for primary markets in the North and the South are respectively $127 per square meter and $187 per square meter, with annual growth rates of 7% and 13%.

Additionally, the supply of warehouses and ready-built factories has also increased, with 0.9 million square meters completed in the first half of 2023. This indicates the continuous development of Vietnam’s industrial real estate market, providing favorable conditions for businesses seeking production and storage spaces.

2. Reasons why the demand for rental factory has increased sharply

Businesses are increasingly recognizing the superior benefits of renting factories instead of constructing their own. This not only helps optimize costs but also brings high flexibility and efficiency in management and operations.

2.1 . Flexibility

One of the key factors promoting the demand for rental factories is flexibility. Businesses can easily adjust their production scale depending on the demand without significant investment in infrastructure. Renting factories allows businesses to expand or reduce their production scale quickly and efficiently.

2.2. Cost savings

Renting factories helps businesses save a large investment cost

Renting factories helps businesses save a large investment cost and additional cost related to construction and maintaining infrastructure. This factor is especially important for small and medium-sized enterprises , which have limited capital resources. Additionally, renting factories can minimize financial risks when the market fluctuates.

2.3. . Convenient location

Many industrial parks in Vietnam are strategically located near seaports and major transportation systems, helping businesses easily transport goods and raw materials. This not only reduces shipping costs but also improves the competitiveness of businesses in the international market.

2.4 Modern facilities

Modern facilities in ready-built factories

Currently, businesses renting ready-built factories in industrial parks are equipped with modern facilities that meet international standards. By saving construction time and benefiting from on-site amenities and support services, businesses can enhance production and business efficiency.

3. Industries with high demand for rental factories

Electronics industry

The electronics industry has high demand for factory rentals

The electronics industry has one of the highest demands for factory rentals, especially in the northern region. Major manufacturers such as Foxconn and Goertek have expanded their production scale in industrial parks in Bac Giang and Bac Ninh. The development of the electronics industry leads to a significant demand for production and storage space, thereby developing the industrial real estate market..

Automobile manufacturing industry

The automobile manufacturing industry in the southern region also reports high demand for factory rentals. These businesses require large spaces for assembling, storing components, and finished products. Renting factories in industrial parks helps businesses save costs and optimize production processes.

Garment industry

The garment industry is one of Vietnam’s traditional industries with a stable demand for factory rentals. Garment enterprises often rent ready-built production factories to expand their production scale or relocate factories from densely populated areas to suburban regions to reduce rental costs.

Packaging industry

The packaging industry also records a high demand for factory rentals, especially in the southern region. Businesses in this sector require large spaces for producing and storing packaging materials to serve other industries. Renting factories helps packaging companies optimize their production processes and reduce costs.

4. Gaw NP Industrial – Premium industrial real estate developer

Gaw NP Industrial is a successful joint venture between Gaw Capital Partners and NP Capital, two major names in the international and domestic industrial real estate sectors. Gaw Capital Partners, a leading Asian investment fund with a total asset value of $35.2 billion, brings international experience and vision, while NP Capital stands out with its extensive network and strong development in the Vietnamese market. This combination provides Gaw NP Industrial with superior financial, management, and global connectivity, enabling the provision of high quality industrial real estate solutions in Vietnam.

Gaw NP Industrial always prioritizes quality and efficiency in every rental factory projects, with key criteria such as:

• Strategic location: Factories are built in strategic locations, near major transportation routes, airports, and seaports.
• Modern infrastructure: Fire protection systems, three-phase electricity, wide internal roads, and 24/7 surveillance cameras.
• Flexible design: Diverse rental areas starting from 2,500 m², with column-free designs.
• Full amenities: Canteen, ATMs, rest areas, etc.
• Favorable tax policies: Helping businesses save costs and optimize profits.

– 3 Leading and High-Quality Factories of Gaw NP Industrial

GNP Dong Van 3

GNP Dong Van 3 owns an ideal location

GNP Dong Van 3 enjoys a prime location near National Highway 1A and the Gie Bridge – Ninh Binh Expressway, approximately 50 km from Hanoi. This strategic positioning not only facilitates domestic traffic but also provides businesses with quick access to nearby areas. Companies with factories at GNP Dong Van 3 can easily reach Noi Bai International Airport and Hai Phong Port, two crucial trade hubs in the northern region.

GNP Nam Dinh Vu

GNP Nam Dinh Vu takes advantage of international trade

GNP Nam Dinh Vu is located in the main of the Dinh Vu – Cat Hai Economic Zone in Hai Phong, spanning an area of 16.9 hectares. Situated within the Nam Dinh Vu Industrial Park, a developed industrial area in Hai Phong, this location provides businesses with a strategic advantage. Additionally, being near Cat Bi International Airport, GNP Nam Dinh Vu offers companies many opportunities to capitalize international trade benefits. This location not only helps businesses transport goods easily to other countries but also optimizes costs and delivery time.

>>> See more: Explore the benefits of expanding production with ready-built factories in Hai Phong

GNP Yen Binh 1 and GNP Yen Binh 2

GNP Yen Binh 1 and GNP Yen Binh 2 take advantage of their location near large factories and convenient transportation

GNP Yen Binh 1 and GNP Yen Binh 2 are located in the Yen Binh Industrial Park, Thai Nguyen province, near major factories like Samsung and key transportation routes. This location not only facilitates easy connection to the capital city of Hanoi but also allows businesses to take advantage of the economy. With the presence of large factories and modern infrastructure, GNP Yen Binh 1 and GNP Yen Binh 2 are preferred for businesses to expand production in the northern region.

Conclusion

Vietnam’s industrial real estate is growing strongly, driving the trend for factory rentals. This development brings numerous benefits to businesses, from cost optimization to improved production efficiency.

If your business is seeking quality warehouse solutions in Vietnam, contact Gaw NP Industrial via hotline: +0789 75 77 88 for the most detailed consultation.

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