The assessment of opportunities for specialized industrial real estate products in Vietnam is a critical aspect of understanding the evolving landscape of the country’s real estate market. This assessment aims to delve into the current state of the industrial real estate sector in Vietnam, highlighting key factors driving its growth, the challenges it faces, and the potential for investors and businesses to tap into this dynamic market.

1. What is specialized industrial real estate?

Vietnamese law does not have any definition of specialized industrial real estate, however, based on land laws and documents related to industrial parks, specialized industrial real estate is understood as investment projects on the construction of industrial parks such as building ready-built warehouses, ready-built factories, cold storage, logistics (warehouse logistics), last-mile logistic, data centers, etc.

2. Current industrial real estate market in Vietnam

a. Overview:

In the overview of Vietnam’s commercial and industrial real estate market in the first 6 months of 2023, industrial real estate continues to be the “bright spot” of the market. In August 2023, Vietnam received a 165 million USD project.

b. Demand source:

In the first half of 2023, the market recorded the expansion of many large manufacturers such as Foxconn and Goertek in Bac Giang and Bac Ninh industrial parks. On the other hand, the strong expansion of Chinese manufacturers in many different fields has further contributed to helping the industrial land and ready-built factory segments record good absorption in the North.

3. Conclusion

In conclusion, although the industrial real estate market has witnessed significant development, it remains characterized by scarcity as the supply falls short of meeting the demand. The dynamic growth of industries such as electronics, automotive, and logistics, coupled with favorable government policies and foreign investments, presents a promising landscape for investors and developers alike.

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Harley Miller Law Firm “HMLF”
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