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  • Insights
  • 28 July 2021

3 trends in industrial real estate development 2021

In order to prolong the growth cycle, investors and managers of industrial parks are constantly updating many new trends, upgrading resources to serve the needs of renting production land, factories promptly, and warehouses exploded when the pandemic changed and pivoted the global supply chain. This year, there are three trends in industrial real estate development that predicts can promote investment attraction in the next decade.

The first is diversifying the supply of satellite industrial parks. It can help the industrial real estate market continue to extend its growth cycle in the next decade by catching up with great potential demand. Some provinces in the southern region also plan to expand industrial zones to attract foreign investment. For example, Long An province has been approved to add three new industrial parks to the national plan, namely Saigon – Mekong industrial park with 200 hectares, Tan Tap industrial park with an area of 654 hectares, and Loc Giang industrial park covers an area of 466 hectares.

Next, innovating the eco-industrial park model is a suitable model for sustainable development and is gradually being promoted by many businesses and manufacturers. Accordingly, businesses jointly commit, cooperate and act to achieve common resource use goals and environmental protection. This model will play an essential role in the sustainable development strategy, helping to reduce resource exploitation, limit the impact on the environment while still not affecting the performance of businesses. In addition, this environment will also make a positive contribution to Vietnam’s and global efforts to combat climate change.

The third trend is to increase synchronous connectivity in industrial zones. The linkage between industrial zones is also significant to develop the logistics and goods production chain. Thereby improving the competitiveness of products, lowering production costs, and improving sustainability. The industrial park has a mechanism to regularly update industrial park development, development policies and develop together, forming an asynchronous system. This mechanism will also help localities deal with many arising problems more effectively, make good use of the advantages of each province, create harmony in the inter-regional development process, and make positive contributions to the national strategy national socio-economic development strategy.

Vietnam’s industrial real estate market is showing a solid transformation to catch up with new demand trends. Particularly for the factory and warehouse market, new developments in ready-made industrial real estate products take place exceptionally quickly to take advantage of the approaching golden opportunity for the entire public industrial real estate market in Vietnam. In order to meet the rental requirements in the new context, industrial real estate developers are making changes in product development to adapt to the higher requirements of customers.

(Source: vnexpress)