Warehouse for rent goes along with development of Logistics industry

From 2019 to now, the demand for warehouse rental in Ho Chi Minh is increasing, although the Covid-19 epidemic is still having a negative impact in many ways. The recent demand for warehouses for rent in Ho Chi Minh City due to stable export production activities along with the strong development of domestic e-commerce makes warehouse space provision unable to keep up with actual demand.

Therefore, recently, many units have been researching and developing logistics warehouse infrastructure for rent in industrial parks to partly meet the needs of the market, including Sai Gon VRG.

1. Overview of the development of warehousing and logistics

According to the Vietnam Logistics Report 2020, about 53.7% of Vietnamese logistics service enterprises provide warehousing services. Warehousing service continues to be one of the important services provided by Vietnamese logistics enterprises.

The existing concern is about warehouse management technology and warehouse development investment capital to promptly satisfy the requirements of production and foreign trade, especially frozen storage and frozen goods supply chain.

In the context of pandemic, some models and types of logistics services continue to grow. For example, the railway industry has increased freight services during the pandemic season instead of passengers. In addition to promoting the transportation of luggage, parcels, and express delivery from online orders by passenger trains, there are also many separate freight trains, shortening train running time, transporting and returning goods quickly because it is not needed to stop and is able to avoid other trains as before.

From all input materials such as apatite to output products such as fertilizers and chemicals of Vietnam Chemical Group are contracted for transportation by railway. For fuits, the international refrigerated container trains transporting dragon fruits weekly straight from Dong Dang station (Vietnam) to Bang Tuong station (China), exploited from February 2020 with a stable volume of good, is package transport that will be opening the way for exported frozen fruits and agricultural products by rail to China and from there to Central Asia and Europe.

Logistics real estate such as warehouses and cold storage is still a bright spot, with growth despite the epidemic. Niche markets in the logistics real estate sector are expected to benefit in the long-term from the effects of the pandemic, as consumption increases and the omni-channel retail distribution of fresh food will increase. boost tenants' demand for cold storage systems in the coming years.

For Ho Chi Minh City, the People's Committee has approved the project to develop the logistics industry in the city until 2025, with orientation to 2030. In details, the goal of promoting development and turning logistics into defined key services because the predicted of contribution to the gross regional product (GRDP) of the city by 2025 will reach 10%, and 12% by 2030.

2. Logistics warehouse for rent in Dong Nam Industrial Park, Cu Chi, Ho Chi Minh

Sai Gon VRG is a unit specializing in industrial park infrastructure developer in Ho Chi Minh City and in Southern provinces. Besides industrial land for lease, factories for rent in industrial zones, Sai Gon VRG will develop warehouses and logistics yards for rent in Cu Chi, Ho Chi Minh.

Accordingly, the warehouse is a core part in any supply chain, not only in the field of logistics but manufacturing or trading. Each field will have its owned way to apply warehousing - distributing channel to suit its characteristics. Particularly for the logistics industry, the demand for warehousing is seen to be many times higher than the general level over past 5 years in Vietnam in general and in Ho Chi Minh City in particular. In the period of supply chain shifting globally, Vietnam is one of the potential destination. In addition, the CPTPP, EVFTA, RCEP Agreements affect the logistics industry, leading to stronger growth in warehouse infrastructure than ever before.

Forecasting the demand, Sai Gon VRG are developing warehouse in Dong Nam Industrial Park, Cu Chi District, Ho Chi Minh City with standard warehouse area of 5,000m2 for goods storage. The warehouse will be leased to logistics enterprises in order to carry out logistics services, including warehousing and distributing. Therefore, any logistics enterprises wishing to invest in logistics warehouses in industrial parks can rent warehouse of Sai Gon VRG to conveniently operate and exploit logistics market in Ho Chi Minh City.

With the growing demand for goods and materials storage serving production as well as the rapid development of e-commerce, warehousing infrastructure is indispensable for the fast and dynamic logistics market like in Ho Chi Minh City. With warehouse for lease in Dong Nam Industrial Park will help manufacturing enterprises, logistics service providers have more options for their investment and business activities, especially in supply - demand connection between Binh Duong province, Dong Nai, Ho Chi Minh City and other provinces.