Russian demand for industrial land and rental prices are increasing in attractive Vietnam.

The rental prices for industrial land in Vietnam are expected to rise by 10 percent over the next two years due to increasing demand from various sectors, experts said. Despite the challenges posed by slowing economic growth, many investors have announced plans to expand their businesses and investments.

The attractiveness of Vietnam for investments

The latest quarterly business confidence index from the European Chamber of Commerce in Vietnam (EuroCham) shows that Vietnam's attractiveness for global investments remains high. As noted by EuroCham, 63 percent of surveyed companies identified Vietnam as one of the top 10 destinations for foreign direct investment (FDI).

VinaCapital Investor Conference

The annual VinaCapital investor conference clearly highlights the attractiveness of the Vietnamese market, as it was attended by nearly 100 delegates from around the world. VinaCapital's CEO and co-founder, Don Gaba, stated: "It has been three years since we last held an in-person conference for investors, and as we all know, the world has changed significantly since then. But one thing that hasn't changed is Vietnam's appeal for investment. Few countries have emerged from the global pandemic as strong as Vietnam, and we are pleased that our guests will see and hear that the investment opportunities here remain vast."

Essentra Components Investments

Recently, the British company Essentra Components announced plans to invest in Vietnam.

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The company's CEO, Scott Fossett, stated: "With new manufacturers emerging in new territories, looking to diversify their operations and become less dependent on a single area, they need partners who can move with them and continue to provide the same level of service they are accustomed to. Our expansion into Vietnam addresses this issue and will give our clients confidence that service can continue without interruption." The company notes that due to its advantageous geographical location and 17 free trade agreements with countries in Europe and America, Vietnam has become a strategic point in the global supply chain, especially in the manufacturing and industrial components sectors. Major corporations like Apple and LEGO have already begun constructing primary manufacturing facilities in Vietnam worth billions of dollars.

The growing demand for industrial land

With the increase of international investors in the country, the demand for industrial land is growing. According to the latest report from the consulting firm CBRE, in the first nine months of 2023, investors from China, Vietnam, Japan, the USA, and the European Union were actively seeking industrial land, warehouses, and factories, accounting for 70-80 percent of the inquiries to the company.

Forecasts for rental prices

According to CBRE's forecasts, rental prices for industrial land are expected to increase by 6-10 percent per year over the next two years, both in the south and in the north. Rental prices for ready-made factories and warehouses are expected to rise by 2-4 percent.