Although Vietnam, especially Ho Chi Minh City and the Southern region, has been hit by the epidemic and has had to apply prolonged social distancing. However, despite the pandemic, the performance indicators collected in the first 9 months of 2021 are more positive than the same period last year, and many trends in the industrial real estate segment will have the opportunity to break through in 2022.
Industrial real estate market in the first 9 months of the year and the trends with breakthrough prospects in 2022
In the first 6 months of 2021, there were 25 new industrial parks established - an increase of 19 industrial parks compared to the same period last year. Compared to last year, occupancy rates in industrial parks in some provinces increased but remained generally stable. Due to many restrictions on travel and a relatively stable occupancy rate, prices increased at a modest rate compared to the period 2018 -2020. However, some provinces such as Hung Yen and Ba Ria-Vung Tau have had rents increased sharply compared to the same period last year.
The blockade and travel restrictions have slowed the relocation of business out of China as scheduled for 2021. However, developers believe that rentals will be more efficient by 2022; Tenants and investors will also have new supply options when restrictions are lifted.
Foreign Direct Investment (FDI)
Regarding the situation of newly registered foreign direct investment (FDI), the manufacturing and manufacturing sector has reached a total registered FDI of US$11.83 billion with 402 new-level projects, accounting for 53.42% of total investment capital, an increase of 16.45% over the same period last year. $83 billion with 402 new-level projects, accounting for 53.42% of total investment, up 16.45% compared to the same period last year.
Supported policies from the government
Protecting the interests of foreign investors is a priority for the Government because foreign capital is key for Vietnam's economic recovery and development. In addition to the encouraging reopening plan, the government's dedicated support for foreign investors, coupled with the sheer resilience and adaptation of domestic businesses, has reassured that the country will not only recover but is likely to return stronger than ever.