Vietnam Logistics Q1-2021 – Part 1: Warehousing

Industrial real estate & warehouse logistics are currently popular assets in the market. The strong growth of the retail market, e-commerce, especially during a pandemic outbreak, also contributed to boosting demand for warehouse rental of businesses around the world. In order to cope with the challenges of supply chain breakdown, to limit the influence of US-China trade policies, and to adapt to the “new normal” state, businesses and manufacturers are forced to must adapt to new consumer trends, and look for smarter warehouse spaces, located in more diverse locations.
The Vietnamese government has been investing heavily in all manner of infrastructure while promoting industrial clusters to attract businesses higher up the value chain. High levels of corporate taxation relief are also available to ensure healthy regional competition.
According to a report by Savills – a real-estate market research company that has conducted research in 54 global markets, rental fees and service fees go long with warehouses in Vietnam (especially Ho Chi Minh and Hanoi) are one of the lowest costs globally. Labor costs, electricity, and oil in this country are also very cheap, cheaper than India – a super-cheap warehouse market in the world, so Vietnam is becoming an attractive place and a target of multinational corporartion and global manufacturers.
Credit: Savills – https://www.savills.com.vn/research_articles/163944/200730-0