Demand for logistics real estate increases sharply: Savills Vietnam | Company

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Nam Hai Dinh Vu port in Hai Phong city. (Photo: VNA)

Hanoi (VNA) – The logistics industry in Vietnam is growing strongly thanks to the growth of the e-commerce industry, according to Savills Vietnam.

This is one of the factors that make the demand for logistics immovable rise sharply, he said.

A survey of Savills Vietnam showed that the logistics industry in Vietnam is experiencing significant growth due to the development of the national economy and manufacturing and e-commerce sectors.

According to an Emerging Markets Logistics Index report released earlier this year by Agility, a leading provider of logistics and transportation services in 2022, Vietnam ranks 11th among the world’s top 50 emerging markets, only behind Indonesia, Malaysia and Thailand in the Association of Southeast Countries. Asian nations.

Vietnam’s transportation and logistics market is expected to grow at a compound annual growth rate (CAGR) of 7% over the period 2021-2026. The Vietnamese government encourages manufacturing enterprises and attracts investment by establishing industrial and economic zones. Despite the challenges of the COVID-19 pandemic, this industry continues to thrive thanks to the opportunities created by domestic production and consumption, economic growth, free trade agreements (FTAs), and the e-commerce boom.

According to Matthew Powell, director of Savills Hanoi, Vietnam is a destination for many companies in the manufacturing and logistics sectors, especially before the development of the e-commerce industry. With this comes an increased demand for high quality industrial real estate.

Currently, many companies are having difficulty finding locations for their factories and warehouses. Industrial parks and warehouse logistics, especially around big cities like Hanoi, have high occupancy rates even up to almost 100% in many places. The supply of industrial real estate is decreasing to keep up with business demand.

This provides an opportunity for international property developers to invest in Vietnam, he said.

Many investors are seizing the opportunity to launch products suitable for the market, therefore, the supply shortage will soon be resolved in the coming months, Powell said.

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