Demand for warehouse rental in Vietnam 2020 - Strong growth in Covid-19 pandemic

Faced with the complicated spread of the Covid-19 pandemic, the niche demands such as automated logistics and cool/cold storage have been increasing dramatically. This development is not only at present, but will also gradually become an overwhelming trend.

The impact of the Covid-19 epidemic on the real estate market was very cold, all segments declined, especially in resort real estate, offices, houses ... However, in a separate branch, Industrial real estate such as warehouse and cold storage still saw growth despite the epidemic.

E-commerce market grows gorgeously

According to experts, with current epidemic situation, e-commerce activities have got clear growth in revenue. While traditional business model were hesitant or slow in their plans to expand into online sales over past years, now is the high time for enterprises to take a more serious look. Even necessities, supermarkets, and groceries are sold online.

Recently, Alibaba and Hema's omnichannel retail chains, were supposed to recruit temporarily-quit employees in hospitality so that their chains are able to accommodate the surge of online orders.

In Vietnam, when the situation of Covid-19 was seemed much more serious from foreign tourists and overseas Vietnamese, online shopping trend has become increasingly popular than ever.

According to representatives of major fashion brands, online shopping have never seemed more overwhelming rather than direct sales. Previously, when there was a 30-50% discount, the store have been bustling with customers, but since the government announced more Covid-19 cases, online orders has grown by more than 60%.

Long-term demand

According to many experts, niche markets of industrial real estate sector are expected to seize chances benefitably in the long term from the effects of the epidemic along with increased consumption and multi-channel retail and distribution model. Fresh food will boost tenants' demand specifically for cold storage systems in 2021.

Moreover, logistics automation will grow strongly. The application of automation programs in logistics industry is expected get considerable increase since suppliers are seeking ways to reduce dependence on manpower and prevent operational disruptions due to complicated Covid situation. This will change the way operators setting up and building systems for their distribution centers and warehouses.

Reviews on Vietnam's logistics and industrial real estate market, experts say that thanks to the growth in e-commerce and the ability of disease control, Vietnam continues to be the destination for many manufacturing companies all over the world, and factories for rent in industrial zones will continue developing. Especially, when many Free Trade Agreements have been approved, warehouses and factories for rent will require both abundant and higher-quality supplies.

Source: thoibaokinhdoanh.vn