The number of Vietnam warehouse for rent has significantly increased in recent years. The development of manufacturing and export activities in the industrial and commercial sectors has led to a “hunger” for warehouse supply among businesses.

1. Rise of warehouse space supply

In recent years, Vietnam has emerged as a new and preferred market for warehouse supply by leading international corporations (as surveyed by Cushman & Wakefield). The growth of e-commerce has driven the demand for high-quality logistics real estate from businesses, making Vietnam an ideal destination.

The demand for Vietnam warehouse for rent is rising.

In Ho Chi Minh City, the total supply of warehouse space is 5.13 million square meters, while in Hanoi, it is 2.022 million square meters (According to Investment Newspaper). The occupancy rates in these two major economic centers are both nearing the 100% mark. However, the warehouse rental market shows no signs of cooling down; instead, it is expected to continue growing, potentially intensifying competition among retail and transportation businesses.

On the other hand, looking at the vacancy rates of warehouses and factories in Vietnam, which are only around 10%, clearly indicates a substantial demand for renting manufacturing warehouses and storage spaces.

It is anticipated that in the next 5 years, Vietnam will add approximately 1 million square meters of warehouse and factory space for rent in suburban areas of Ho Chi Minh City and Hanoi to meet the increasing demand in the market.

2. Why Investors Choose Vietnam

The emergence of Vietnam over the past decade has positioned the country as one of the leading manufacturing hubs in Southeast Asia and globally.

Furthermore, the political instability in many parts of the world has prompted multinational corporations to diversify their supply chains. Seizing this opportunity, Vietnam quickly attracted attention and benefited from this shifting trend.

By utilizing land efficiently, factory space and Vietnam warehouse for rent effectively meet the needs of businesses, enabling them to quickly adapt to new markets. Notably, the geographical location of these rental properties is crucial, meeting criteria such as proximity to residential areas, major cities, bordering key economic regions, or even facilitating easy trade with neighboring countries like China, Thailand, Cambodia,…

Vietnam warehouse for rent meet the criteria of businesses.

Additionally, the transportation infrastructure in Vietnam allows businesses to save on transportation costs by utilizing all five systems: inland waterways, airways, maritime routes, roads, and railways.

Moreover, Vietnam holds an advantage in terms of a large and skilled labor force, with costs remaining at an average level compared to the real estate rental market in the region.

The combination of these factors has attracted numerous large enterprises to invest in Vietnam, including prominent names such as Samsung, LG, Foxconn, and the Quanta Computer group – a key partner of Apple.

>>> See more: 10 essential tips for choosing a warehouse space for lease in Vietnam

2.1. Vietnam as a Destination for Supply Chain Diversification

The strategic geographical location of Vietnam, coupled with the growth of e-commerce, has elevated the country’s significance within manufacturers’ supply chains. This presents an opportunity for Vietnam to contribute to the increase in its GDP in the coming years.

Furthermore, the warehouse infrastructure in Vietnam has undergone substantial government investment, supported by favorable policies that create an environment conducive to robust Foreign Direct Investment (FDI). A recent meeting between Vietnam and the United States has led to comprehensive cooperation agreements, focusing on the development of high-tech manufacturing and semiconductor markets. Following this meeting, Vietnam has emerged as a top-priority market, second only to India, for numerous FDI enterprises.

Vietnam has achieved notable milestones, underscoring its economic prowess:

• In 2019, it ranked 8th among the world’s best economies (according to the US News & World Report).
• In 2020, it secured the 70th position out of 190 countries in the favorable business environment index.
• By 2022, it ranked 11th among 50 emerging global logistics markets.
• In 2023, it attained the 43rd position in the efficient logistics index.
• The average logistic growth rate stands at 14-16% per year, with logistics contributing 4-5% to the GDP.
• Vietnam has become the destination for over 32,000 projects from 136 countries and territories, boasting a total registered capital of USD 378 billion.

With these impressive statistics, Vietnam holds the potential to be a lucrative market for businesses with strong vision and capabilities.

Vietnam – a country diversifying the emerging supply chain in the Southeast Asian market

2.2. Surge in E-commerce

The period from 2016 to 2021 witnessed a remarkable and impressive surge in the e-commerce sector in Vietnam, growing at an astonishing rate of 25% per year. E-commerce contributed to 7.7% of the national revenue for goods and consumer services. Many major retail companies have planned market expansions in Vietnam. Consequently, the demand for warehouses for rent, as well as logistics services in Vietnam, is very high. The unique nature of the e-commerce industry necessitates large warehouses for storing a diverse range of products and the installation of systems to support order picking and packaging operations.

Currently, the warehouse leasing market in Vietnam is fiercely competitive with countries such as Hong Kong, Singapore, Shanghai, and Dubai, aiming to become international-scale transportation hubs.

2.3. Domestic Consumption Growth

The domestic market stands out as a bright spot and plays a pivotal role in Vietnam’s economy. Recent years have seen significant growth in domestic consumption, contributing to a substantial increase in the domestic warehouse and storage leasing market.

In September 2023 alone, the revenue for consumer services reached VND 524.595 trillion, a 2.4% increase compared to August 2023. High-demand product categories in Vietnam include grains, food, services, and tourism.

The growth in purchasing power has led to an increased demand for expanding warehouse and storage networks. Businesses are required to restructure their infrastructure or lease existing warehouses in strategically advantageous areas to enhance efficient trade and timely supply of goods to consumers.

The growing purchasing power has led to increased demand for warehouses for rent in Vietnam.

3. Gaw NP Industrial – Leading Industrial Real Estate Developer for Lease in Vietnam

Gaw NP Industrial is a premium industrial real estate developer, a joint venture between two companies: Gaw Capital Partners and NP Capital. Gaw Capital Partners, with assets totaling nearly $35.2 billion, is a leading investment fund in Asia. NP Capital, on the other hand, is one of the premier real estate investment and development funds in Vietnam.

Gaw NP Industrial’s warehouse and leasing projects include:

– GNP Đồng Văn 3:

• Area: 16 hectares
• Storage Area: Starting from 9,100 m2
• Infrastructure – Facilities: Column-free design, 24/7 security system, Fire Protection and Prevention System (PCCC), water treatment system, …

Warehouse for rent in Vietnam – GNP Dong Van 3

>>> See more: Ha Nam’s warehouse rental market: a hub for foreign investors

– GNP Nam Dinh Vu

• Area: 16.9 hectares
• Flexible warehouse area: 9,500 m2
• Convenience: column-free design, 24/7 security system, fire protection system, water treatment system…
• Queen bee: Pegatron, PHC, Liteon, LG, ASE Holding, Growatt, Nipro, Greenworks, Regina Miracle, Tesa, USI, Chilisin, Bridgestone…

Vietnam warehouse for rent – GNP Nam Dinh Vu

>>> See more: 9 key considerations when renting a warehouse in Hai Phong

In conclusion, GNP Industrial has provided information on the increasing demand for Vietnam warehouse leasing for rent. If your business has any questions, please leave us a message!

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