DEEP C Industrial Zones Vietnam complex, located in Haiphong city and Quang Ninh province, initiated 21 new projects last year with a combined capital value of $970 million. These projects encompass various sectors, including vehicle manufacturing and component production for the renewable energy industry.
According to a report by real estate consultancy firm CBRE on the real estate market in Q3/2023, the industrial real estate occupancy rate in tier-1 markets remains consistently positive.
Manufacturers from diverse industries and countries continue to expand in both the southern and northern regions, indicating sustained growth across various fields and a positive trend in the Vietnamese industrial real estate market. The north and south boast average occupancy rates of 81% and 92%, respectively.
The absorption area in the northern market reached its highest level in the past five years, surpassing 800 hectares (ha) – a YoY increase of 37%. In contrast, due to limited available land, the absorption area in the southern market was 32% lower than the same period last year, standing at 500ha.
Moreover, the ready-built warehouse and factory market experienced a busy year, with the northern region recording the highest-ever new supply at 770,000 square meters, and the south showing a comparable figure.
Despite the increase in supply, the occupancy rate for ready-built factories remained stable at 86% in the north and slightly increased to 85% in the south. The absorption area in the southern region in H2 2023 was 3.8 times higher than in H1, thanks to positive policy shifts.
The semiconductor and electric vehicle industries gained prominence in Vietnam in 2023, with growing local focus and business interest in high-tech and sustainable sectors, expected to drive future demand.
As a Belgian-invested enterprise in Vietnam, DEEP C initially launched IZ projects in Haiphong and expanded further with two IZs in Quang Ninh province, with plans for further expansion in the coming years.
Bruno Jaspaert, General Director of DEEP C Industrial Zones, highlighted the conducive investment environment and significant growth potential in the northern region’s localities.
“Comparing trade between the south and the north, we observe that the north currently offers better factors. However, the north is not the only option for investors; it depends on various factors, such as appropriate infrastructure or the proximity of specific raw materials and production facilities to supply chains,” commented Jaspaert.