Industrial real estate, especially ready-built factories, are still in high demand in 2023. Businesses are looking for opportunities in both key provinces and group 2 provinces, which are farther from major cities. For example, in the North, Vinh Phuc is a group 2 market that has a good absorption of industrial real estate.
Group 2 markets have competitive advantages over group 1 markets, such as lower prices and more land options. According to Savills Vietnam, the absorption of group 2 markets is better than that of group 1 provinces in the last two years.
Ready-built factory segment attracts many investors from Europe and the US. As a result, many domestic and foreign investors have plans to expand more projects to this segment. The supply of ready-built factories in the North has increased sharply, mainly in key markets such as Hai Phong and Bac Ninh.
Recently, Vietnam has attracted many large investors in industrial production, such as Samsung, LG, and Foxconn. Recently, Quanta Computer Group, a partner of Apple, agreed to build a computer manufacturing project in My Thuan industrial park with an investment of 120 million USD. This will be Quanta’s ninth factory in the world. Another project by two Taiwanese investors, Boltun Corporation and QST International Corporation, received an investment certificate of 165 million USD in Bac Tien Phong Industrial Park.