Top reputable industrial parks developers Vietnam first quarter 2021

To know the Top reputable industrial park developers recently, we will refer to the assessment of Vietnam Report Joint Stock Company (Vietnam Report). Specifically, on March 19, 2021, Vietnam Report Joint Stock Company (Vietnam Report) officially announced the Top 10 prestigious real estate developer companies including industrial parks developers.

This is an independent research result of Vietnam Report, built on scientific and objective principles. Reputation of companies is assessed based on research on the influence of financial factors, corporate image on the media channels and assessment of industry experts. Specifically, three factors constitute as follows: (1) Financial capability shown on the most recent financial statement (total assets, total revenue, profit, efficiency of capital use...); (2) Media reputation assessed by Media Coding method - encoding articles about the company on influential media channels; (3) Survey of industry experts, of residents living and working in areas about their satisfaction with real estate products/services.

In addition, this report also make survey on enterprise operation situation, number of projects, project handover progress, etc. in the year 2019 - 2020 is also used as an additional factor to determine the position of enterprises in manufacturing industry.

1. Overview of industrial real estate in 2020

In 2020, VNR makes an assessment of experts that: industrial park real estate will be the bright spot of the market in 2021. With many advantages when the economy has been developing stably, Vietnam participates in many trade agreements, the US-China trade war, in addition to the outbreak of the COVID-19 epidemic, which are causing strong impacts on the world economy, disrupting the global supply chain and production from China to ASEAN countries, FDI inflows into the real estate sector continued to increase.

In addition, the industrial real estate sector also receives many support policies such as tax exemptions and incentives from the State for investors. Vietnam has many advantages of becoming a new manufacturing hub in Asia with its proximity to China and low labor costs. By the end of 2020, Vietnam has about 326 industrial parks and export processing zones established, with the occupancy rate reaching 70% - 80%.

2. Ranking list for the first quarter of 2021

The next 2-3 years can also have good potential as some investors in China and other countries are planning to relocate their production plants to Vietnam. This is the fertile land that everyone wants to make investment. However, to be able to invest in industrial real estate at this time is not easy because it is related to the planning of industrial zones, traffic infrastructure, etc. According to experts in Vietnam's survey Report, currently there has not been a wave of foreign investors entering Vietnam.

At this time, only a few large enterprises have entered Vietnam but have not seen a shift. Especially, in the context of the trade war between the US and China being gradually calmed down. Therefore, the migration of some US businesses into Vietnam may not take place as strongly as predicted. Besides, industrial real estate in the past time is also very different from industrial real estate 10-15 years ago.

If in the past, the unit investing in industrial real estate only made infrastructure, then they waited for investors to rent a factory, and the investor had to build the factory by themselves; but now, the form of industrial real estate business in Vietnam has changed, investors can also build ready-made warehouses and factories with full utilities and then rent them out. Besides, not only investing in factories and workshops, but also renting warehouses is also an effective form of industrial real estate investment.

As of March 2021, a few prominent names in the industrial park real estate segment have been honored:

Really pleased that Saigon VRG was recognized as one of the 5 most prestigious industrial park real estate developers next to the big names of the market. In general, the real estate market in 2020 faced many difficulties and fluctuations with many gray colors when most types of real estate were negatively affected by the Covid-19 epidemic, but achieved this result for with Saigon VRG is a very encouraging thing.

A survey by Vietnam Report with real estate businesses has shown 6 factors to help businesses overcome difficulties caused by the impact of the Covid-19 pandemic: Timely offer scenarios to cope with the epidemic situation (100%); The company has built a reputation and brand in the market (72.73%); Healthy finance status (45.45%); Review, cut and use cost effectively (36.36%); Developing new markets (36.36%); Enhance digital transformation in management and sales (27.27%).

3. Outlook for real estate in industrial zones upcoming years

The investment shift continues, which can maintain good potential as some investors in China and other countries are planning to relocate their production plants to Vietnam. This is fertile land that everyone wants to invest in. However, to be able to invest in industrial real estate at this time is not easy because it is related to industrial park planning, transportation infrastructure, etc.

According to experts in Vietnam Report's survey, currently, there have not been a wave of foreign investors entering Vietnam. At this time, only a few large enterprises have entered Vietnam but have not seen a shift clearly. Especially, in the context of the trade war between the US and China is gradually calmed down.

Therefore, the migration of some US businesses into Vietnam may not take place as strongly as predicted. Besides, industrial real estate in the past time is also very different from industrial real estate 10-15 years ago. In the past, developers of industrial real estate only made infrastructure, then they waited for investors to rent factories, and investors had to build factories themselves. But recently, the form of industrial real estate business in Vietnam has changed, real estates developer build ready-made warehouses and factories and then lease them to investors. Besides, not only investing in factories and workshops, but also renting warehouses is also an effective form of industrial real estate investment.

Source: Vietnam Net