The industrial parks in northern Vietnam are expected to become hotspots for industrial real estate, particularly in the semiconductor industry, with rental prices experiencing the most significant increase nationwide. The semiconductor market in Vietnam is projected to reach $6.16 billion by the end of 2024. Many major companies such as Intel, Samsung, Qualcomm, and Infineon have invested in Vietnam.
In October 2023, Amkor inaugurated a factory in the Yen Phong 2C Industrial Park (Bac Ninh) with an area of 230,000 square meters and an investment of $1.6 billion, supplying products to Apple, Nvidia, and Foxconn.
Amkor is operating its largest factory in Bac Ninh. Photo: Amkor
Ramachandran A.S., Chairman of AmCham, stated that the favorable investment environment and large land reserves are reasons why businesses choose Vietnam. Thomas Rooney from Savills noted that the demand for warehouses and industrial parks is increasing, with high requirements for stable electricity, high-speed internet, and efficient water treatment systems. Rooney also mentioned that industrial real estate tenants in southern provinces are mainly from processing industries such as rubber, plastics, food, and beverages, while in the north, investments are primarily from computer, electronics, and electrical product companies. Therefore, with the development of semiconductor investment, industrial real estate in the north is expected to have a stronger momentum.
Rental prices for industrial real estate in northern Vietnam have seen the most significant increase nationwide, reaching around $135 per square meter per lease term, up 33% from the previous year. In contrast, rental prices in the southern region are higher, around $188 per square meter per lease term, but only increased by approximately 15%. However, infrastructure in Vietnam, especially the power system, is not yet fully developed.
Thomas Rooney emphasized the need to expedite energy infrastructure projects to meet the large demand from the semiconductor industry.
Duy Nguyen compiled from baodautu.vn