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The demand for leasing factories in Vietnam is on the rise

May 09, 2024 07:45 AM

With the positive development of industries and e-commerce along with the current need for fast delivery, the market for lease factory in Vietnam has increased sharply, attracting many customers. This includes both domestic and international corporate customers, making Vietnam a bright spot in the industrial real estate market in Southeast Asia. 1. Which “Queen bees” […]

With the positive development of industries and e-commerce along with the current need for fast delivery, the market for lease factory in Vietnam has increased sharply, attracting many customers. This includes both domestic and international corporate customers, making Vietnam a bright spot in the industrial real estate market in Southeast Asia.

1. Which “Queen bees” have chosen to expand production in Vietnam?

Queen Bee is a real estate term used to refer to international corporations and large influential investors in the development of Vietnam’s industrial and economic zones. These large enterprises often have strong investments in large-scale industrial projects, use many modern technologies and have international business networks.

Queen Bees have changed significantly since the Covid epidemic and are now a major worldwide supply chain movement. Vietnam has emerged as one of the best locations for manufacturing in Southeast Asia at the same time as political unrest in a number of other nations has drawn these queen bees’ attention to the country.

The wave of supply chain transformation has taken place strongly in the past few years

The wave of supply chain transformation has taken place strongly in the past few years

With corporate incentives and open investment support policies, Vietnam has drawn over 150,000 foreign direct investment (FDI) projects in 2023, totaling over 420 billion USD. These projects include:

– Singapore’s 16 FDI projects have a capital of 34.5 million USD.

– 15 Korean FDI projects have a capital of 24.2 million USD.

– 16 Japanese FDI projects have a capital of 17.5 million USD…

Currently, Vietnam has 388 industrial parks with a total area of 100,000 hectares and many warehouses for investors to rent to set up production lines. (Statistics from the Ministry of Industry and Trade until August 2023).

Some famous Queen Bees are investing in the factory rental market in Vietnam:

– Samsung:

  • With 17 projects with a total capital of more than 18.3 billion USD in provinces such as Thai Nguyen, Hai Phong,…
  • Focus areas: electronic products, household appliances, information technology…
  • Create jobs for 150,000 direct workers and 2 million indirect workers.
  • Accounting for 19.4% of Vietnam’s total export turnover (2022)

– Foxconn (Taiwan) – The world’s largest component supplier

  • Total investment capital is 14.8 billion USD, with 14 projects in Thai Nguyen, Hai Phong, Bac Giang provinces…
  • Focus areas: electronics, home appliances, information technology…
  • Create jobs for 100,000 direct workers and 1 million indirect workers.
  • Accounting for 13.7% of Vietnam’s total export turnover (2022)

– Intel (USA) – The world’s largest semiconductor chip supplier

  • With 05 projects with a total capital of more than 7.9 billion USD in provinces such as Dong Nai, Binh Duong,…
  • Field of focus: manufacturing semiconductor chips (CPU, GPU, RAM, etc.).
  • Create jobs for 10,000 direct workers and 100,000 indirect workers.
  • Accounts for 1.1% of Vietnam’s total export turnover (2022)

US Intel choose lease factory in Vietnam

US Intel choose lease factory in Vietnam

– Panasonic (Japan) – the large multinational corporation in the world

  • There is a total capital of more than 2 billion USD for 12 projects in provinces such as Hai Phong, Bac Ninh, Thai Nguyen,…
  • Focus areas: electronic products, household appliances, telecommunications equipment, medical and industrial equipment…
  • Create jobs for 15,000 direct workers and 50,000 indirect ones.
  • Accounts for 1.0% of Vietnam’s total export turnover (2022)

– Tokyo (Japan) – Large car corporation in the world

  • There is a total capital of more than 1.5 billion USD for 6 projects in provinces such as Vinh Phuc, Ninh Binh, Nghe An…
  • Focus areas: manufacturing cars, buses, trucks, motor vehicles and related products
  • Create jobs for 10,000 direct workers and 50,000 indirect ones..
  • Accounts for 1.1% of Vietnam’s total export turnover (2022)

– Sumitomo (Japan) – Multinational Corporation

  • There are 26 projects with a total investment capital of more than 10 billion USD
  • Focus areas: finance, manufacturing and retail.
  • Create jobs for 30,000 direct workers and 100,000 indirect ones.
  • Accounts for 1.2% of Vietnam’s total export turnover (2022)

– LG (Korea) – Large multinational corporation in the world

  • There is a total capital of more than 2 billion USD for 16 projects.
  • Focus areas: electronic products, telecommunications and industrial equipment, household electrical appliances…
  • Create jobs for 30,000 direct workers and 100,000 indirect ones.
  • Accounts for 1.2% of Vietnam’s total export turnover (2022)

– Canon (Japan) – Large multinational corporation in the world

  • There is a total capital of more than 9 billion USD for 09 projects.
  • Focus areas: manufacturing cameras, printers, office equipment, medical equipment,…
  • Create jobs for 10,000 direct workers and 50,000 indirect ones
  • Accounts for 0.8% of Vietnam’s total export turnover (2022)

– Bridgestone (Japan) – Large multinational corporation in the world

  • Has a total capital of more than 2 billion USD.
  • Focus areas: tire production and tire services.
  • Create jobs for 15,000 direct workers and 50,000 indirect ones.
  • Accounts for 1.1% of Vietnam’s total export turnover (2022)

– Mitsubishi (Japan) – Large multinational corporation

  • Total capital: more than 1 billion USD.
  • Focus areas: automobile manufacturing, industrial machinery and electronic equipment
  • Create jobs for 10,000 direct workers and 50,000 indirect ones.
  • Accounts for 0.8% of Vietnam’s total export turnover (2022)

Japan's Mitsubishi choose lease factory in Vietnam

Japan’s Mitsubishi choose lease factory in Vietnam

2. The industrial production sector continues to change positively

According to the statistics from the General Statistics Office in 8/2023:

  • The overall industrial production index increased by 2.6% over the same period last year.
  • The overall industrial production index increased by 2.9% compared to the previous month.
  • The processing and manufacturing industry increased by 3.5%.
  • The electricity production and distribution industry increased by 3.7%.
  • The water supply industry, waste management and treatment activities, and wastewater increased by 1.8%.
  • The mining industry decreased by 6.2%.
  • The coke and refined petroleum products industry increased by 9.9%.
  • The tobacco product industry increased by 8.6%.
  • Rubber and plastic products increased by 8.4%.
  • Prefabricated metal products (except machinery and equipment) increased by 7%.
  • The metal ore mining industry increased by 6.5%.
  • The chemical and chemical products industry increased by 5.6%.
  • The food processing industry increased by 5.4%.

Heavy industrial manufacturing sectors have had positive changes

Heavy industrial manufacturing sectors have had positive changes

According to a report by the General Statistics Office, the industrial production index is increasing in 49 regions, including:

  • Bac Giang increased by 16.4%.
  • Phu Tho increased by 15.7%.
  • Nam Dinh increased by 13.8%.
  • Kien Giang increased by 13%.
  • Hai Phong increased by 12.1%.
  • Phu Yen increased by 11.8%.
  • Hau Giang increased by 183.8%.
  • Thai Binh increased by 91%.
  • Tra Vinh increased by 34.7%.

The above data shows that the processing and manufacturing industry leads in attracting investment capital from FDI enterprises to Vietnam. Therefore, Vietnam is required to have attractive preferential policies, optimize legal procedures and especially promote the development of the market of lease factory in Vietnam to meet today’s needs at a higher level of the business.

3. Demand for renting ready-built warehouses is increasing

The shifting wave of major Queen Bees in the world along with strong growth in purchasing power in the domestic market has pushed the demand for lease factory in Vietnam higher than ever.

As noted by CBRE, the growth of the e-commerce industry leads to increased demand for fast delivery, requiring businesses to have large-scale ready-built warehouses located in popular locations to solve cost problems, help save and manage supply chain operations better for businesses.

Vietnam has made strides in optimizing land use efficiency to build warehouses with fully equipped infrastructure, meeting the strict criteria of many FDI enterprises.

According to CBRE’s report, the leasing market of factories in Vietnam has provided about 513,957 m2 with 70% concentrated in the South and 30% in the North. Moreover, the average occupancy rate of warehouses in the South reached 81.9% and 80.2% in the North, which is 20% higher than last year.

As a consequence of Vietnam’s policy of strengthening international relations with foreign partners, up to 70-80% of businesses from China, the US, Korea, and the European Union (EU) are still actively looking for a suitable place in the factory rental market in Vietnam (as recorded by CBRE). It is expected that in the coming time, this market will continue to grow even stronger.

Many FDI enterprises are looking to lease factory in Vietnam

Many FDI enterprises are looking to lease factory in Vietnam

>>> See more: Eight Key Advantages of Leasing Factories in Vietnam

4. Gaw NP’s good factories for rent

When mentioning the factory rental market in Vietnam, it is impossible not to mention the developer Gaw NP Industrial, a high-end industrial real estate joint venture group currently with many great reputations in projects such as: GNP Dong Van 3, GNP Yen Binh 1, GNP Yen Binh 2, GNP Nam Dinh Vu.

4.1. GNP Dong Van 3 in Ha Nam

With its 16 hectares of land in the province of Ha Nam and its tax policy of 100% corporate income tax exemption for the first two years and 50% for the following four, GNP Dong Van 3 is a magnet for many interested enterprises.

Factory for rent in Vietnam - GNP Dong Van 3 in Ha Nam province

Factory for rent in Vietnam – GNP Dong Van 3 in Ha Nam province

4.2. GNP Nam Dinh Vu in Hai Phong

The GNP Nam Dinh Vu was established on a scale of 16.9 hectares to provide warehouse solutions for FDI enterprises and businesses in the Hai Phong area or surrounding areas. GNP Nam Dinh Vu is located in Hai Phong province and is known as a key industrial park in Vietnam.

The tax policy here is exemption for 4 reductions for 9 (100% reduction in the first 4 years and 50% reduction in the next 9 years). In addition, the factory also achieved EDGE certification when the entire production system met green and sustainable standards, and GNP Nam Dinh Vu also fully met fire prevention and other safety standards.

With those advantages, this factory promises to be an ideal destination providing full infrastructure, large and small, suitable for each customer segment. Currently, GNP Nam Dinh Vu has also attracted many businesses in industries such as automobiles, electronics, microchips, etc. to invest here.

GNP Nam Dinh Vu achieved EDGE certification with a design with many green areas

GNP Nam Dinh Vu achieved EDGE certification with a design with many green areas

4.3. GNP Yen Binh 1 & 2 in Thai Nguyen

The factory area adjacent to GNP Yen Binh 1 & 2 is located in Yen Binh Industrial Park with a total area of 29.5 hectares. It is one of the large factories in Thai Nguyen with a strategic location near places such as China, Noi Bai airport, Hanoi, Cai Lan port, Lach Huyen wharf, Cat Bi 1 international airport, etc.

With the second largest area in Thai Nguyen province, GNP Yen Binh 1 and 2 are the investment places of large FDI enterprises such as Samsung, DGB, Masan, etc., providing a spacious factory system and column-free design to help maximize space and area. At the same time, it is fully equipped with 24/7 security systems and fire protection systems, electricity and water… to ensure the factory operates smoothly 24/24.

GNP Yen Binh 1 & 2 also have the advantage of a 1.2 meter brick wall combined with a floor load of 2 – 2.5 tons/m2 along with a 3-phase power system with a capacity of 250 – 500 KVA that can serve the needs of customers. many major industries.

Column-free design inside GNP Yen Binh factories 1 and 2

Column-free design inside GNP Yen Binh factories 1 and 2

The above information partly covers the recent situation of lease factory in Vietnam. If you are looking for a quality warehouse solution in Vietnam, please contact Gaw NP Industrial via hotline: 0789 75 77 88.

>>> See more: Important Factors to Consider When Renting a Factory in Vietnam

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