Wednesday, March 22, 2023 6:20:02 AM - Markets open
VN-INDEX 1,032.43 +9.33/+0.91%
HNX-INDEX 203.11 +1.49/+0.74%
UPCOM-INDEX 75.67 -0.35/-0.46%
VN industrial, logistics real estate a resilient asset class: analysts
Vietnam News - 9/9/2021 5:04:37 PM
 (0 ratings. You must sign in to rate.)
 Demand for e-commerce and pharmaceuticals ensure that the industrial and logistics real estate segments remain the most resilient asset class in 2021, experts have said.
In its latest report on the segments, property consultant Jones Lang Lasalle (JLL) said early and mid-2021 will always be remembered in history as the time when COVID-19 changed lives and businesses in Việt Nam.
Most provinces and cities' authorities imposed strict social distancing measures, fuelling the dramatic acceleration of e-commerce as consumers stuck at home flocked to online shopping portals.
“Amid slowing economic activity, COVID-19 led to a surge in e-commerce and accelerated digital transformation,” Trang Bùi, head of client development, transactions Vietnam, JLL, said.
“Logistics and industrial buildings, comprising warehousing and supply chain and manufacturing facilities, received increasing investments due to the rise of e-commerce and third-party logistics (3PLs) services in recent years.”
According to the Việt Nam e-Commerce and Digital Economy Agency, Việt Nam is one of the fastest growing e-commerce markets in Southeast Asia due to its young and tech-savvy population and strong growth in smartphone ownership and 4G.
Retail e-commerce grew at 18 per cent last year to US$11.8 billion, it said.
JLL forecast logistics and industrial investment in the Asia-Pacific to almost double from 2019-2021 to $50-60 billion in 2023-25, and said Việt Nam has developed a tri-economic regional model to stimulate vertical growth. 
In the second quarter of this year the total area of industrial land and ready-built factories were 9,700ha and 1.9 million square metres in the north, 6,600ha and 30,500 square metres in the central region and  25,200ha and 3.2 million square metre in the south. 
The quarter also saw a lot mergers and acquisitions and welcomed new investors such as GNP Industrial and KCN Vietnam, signs of great market potential even during the pandemic.
“The attractiveness of the logistics and industrial asset class will only intensify for investors, as many of them are starting to increase their exposure to logistics assets while they look to allocate capital to stable income-producing assets,” Trang said.
However, COVID-19 has affected the supply chain and manufacturing as factories faced labour shortages due to restrictions on people’s movements. 
JLL said logistics connections suffered from disruption in product delivery since goods were classified into essential and non-essential.
FMCG, e-commerce, pharmaceuticals, and cold storage are among the sectors that would have demand for additional warehouse space near urban areas while the auto, heavy machinery, and chemical industries are likely to look for short-term leases in suburban areas, it said.
Trang said though prices of construction materials have increased by 25 per cent this year, “Demand for e-commerce and pharmaceutical services has ensured that Việt Nam’s industrial and logistics real estate sector remains the most resilient asset class in 2021.” 
JLL said however the logistics industry has to overcome many challenges to achieve growth goals, and it is imperative for the country to continue investing in infrastructure, like highways, utility networks and renewable energy, to enter the next phase of the industrial and logistics cycle and become more competitive among regional peers. 
Việt Nam also needs to significantly improve the time and costs required for cross-border trade, it added. — VNS
Read original article here
Newer News
14/03 Gov’t removes roadblocks for real estate market, firms expect drastic actions
14/03 Real estate market won’t recover until late 2024: experts
06/03 HCM City condo supply down in 2023
03/03 HCM City to remove challenges facing 116 property projects
16/01 Experts call for favourable policies to help real estate
16/12 Domestic real estate market boom unlikely in 2023
16/12 Domestic real estate market boom unlikely in 2023
16/12 Interest rate for social housing loans to be raised to 5% in 2023
07/12 MoF to raise taxes on land and housing
07/11 Real estate market must be digitalised
Older News
30/08 Analysts divided on immediate future of property market
10/08 Singaporean businesses expand investment in Vietnam's real estate
14/05 Domestic real estate market continues to see rosy signs
23/03 Deputy PM urges fast implementation of Long Thanh Airport’s component projects
08/02 HCM City in top six most preferred markets for investment: CBRE
27/08 Localities must select ODA projects practically: minister
18/06 COVID-19 could shake up realty rent market
10/06 Property firms return to market after COVID-19
28/03 Association calls for tax incentives for social housing developers to be consistent
01/03 Residential suburban projects prove alluring to buyers
Newsletter Signup
Top Stories
Central bank makes first rate cut since 2020 to support economic growth
Domestic investors open less than 100,000 new accounts in the first 2 months
MSN: Masan secures up to $650m syndicated loan, redeems $126.3m bonds
Shares climb for third straight session
Shares climb for second day, realty stocks cool down
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,032.43 +9.33/+0.91%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.