Shift in Chinese manufacturing drives Vietnam industrial rent rises

The US-China trade dispute is fuelling an exodus of Chinese manufacturing to SE Asian nations with Vietnam directly benefiting.

According to a new report from real estate analysts JLL Vietnam, strong demand for industrial space saw rental price rises in Q2 2019 by up to 15.8% year-on-year with average occupancy in South Vietnam’s Southern Key Economic Zone hitting 81%.

Land leasing costs in HCMC’s industrial zones as well as those in the provinces of Binh Duong, Dong Nai, Long An and Ba Ria-Vung Tau reached an average of US$D95 per m2 on average in Q2.

Vietnam’s industrial property sector will also benefit from ongoing expansion of trade networks, led by the signing of the European Union-Vietnam Free Trade Agreement (EVFTA) last month.

 

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