INDUSTRIAL REPORT

Q1 | 2022

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CONTENTS
I. OVERVIEW...................................................................................................................................................................................................................... 1
1. VIETNAM TOOK PART IN SOME TRADE AGGREMENTS ........................................................................................................... 1
2. VIETNAM ECONOMIC FACTORS................................................................................................................................................................ 2
3. LIST OF COMPANIES MOVED FROM CHINA TO VIETNAM (2020-2022)........................................................................ 3
4. LIST OF COMPANIES ARE MOVING FROM CHINA TO VIETNAM........................................................................................4
II. SOME FACTORS COMPARED TO OTHER COUNTRIES IN THE REGION........................................................................ 5
1. POPULATION.......................................................................................................................................................................................................... 5
2. POLITICAL................................................................................................................................................................................................................. 5
3. GDP GROWTH RATE ........................................................................................................................................................................................ 5
4. SALARY OF MANUFACTURING INDUSTRY........................................................................................................................................ 5
5. MANUFACTURING PRODUCTION............................................................................................................................................................ 6
5. MANUFACTURING PMI ................................................................................................................................................................................... 6
III. VIETNAM.................................................................................................................................................................................................................... 7
1. GDP............................................................................................................................................................................................................................... 7
2. TRADE BALANCE................................................................................................................................................................................................. 7
3. WAGE IN VIETNAM............................................................................................................................................................................................. 7
4. VIETNAM’S PMI......................................................................................................................................................................................................8
5. GROWTH OF INDUSTRIAL PRODUCTION..........................................................................................................................................8
6. FDI.................................................................................................................................................................................................................................. 9
IV. PERFORMANCE OF INDUSTRIAL PARKS...........................................................................................................................................11
1. OVERVIEW................................................................................................................................................................................................................11
a. Supply..........................................................................................................................................................................................................................12
b. Investment...............................................................................................................................................................................................................13
c. Occupancy...........................................................................................................................................................................................13
2. LIST OF INDUSTRIAL PARKS IN VIETNAM REGION.................................................................................................................... 14
a. Northern Region................................................................................................................................................................................................. 14
b. Central Region......................................................................................................................................................................................................15
c. Southern Region............................................................................................................................................................................. 16
3. OPPORTUNITIES AND PROSPECTS ......................................................................................................................................................17
 Industrial Report | Q1 2022 Industrial Report | Q1 2022

I. OVERVIEW
VIETNAM TOOK PART IN SOME TRADE AGREEMENTS VIETNAM ECONOMIC FACTORS

Over the last 20 years, Vietnam has emerged as European Union, Korea, Japan, Russia, China, and Item Last Previous Reference
a major manufacturing hub in the Asia region Australia, and was still negotiating two FTAs with
GDP Annual Growth Rate (%) 5.03 5.22 Mar 2022
as a result of factors such as its relatively stable Israel and the EFTA. As the milestones collected
Unemployment Rate (%) 3.72 2.62 Sep 2021
political environment (reached -0.07 points in by Our TMS Consultancy show, Vietnam has
2020), orientation toward becoming an export completed a number of strategic new generation Inflation Rate (%) 2.41 1.42 Mar 2022
economy, low operating costs, an abundant young agreements, including EVFTA, CT-TPP, and the Interest Rate (%) 4 4 Feb 2022
labor force, and investment-friendly policies. EAEU-VN FTA. These issues will give our country
Balance of Trade (USD Million) 2.05 -1.96 Mar 2022
Furthermore, the government has been actively more opportunities to compete with countries in
negotiating and signing a number of free trade the region and around the world, as well as better Current Account (USD Million) -3,860 -4,596 Sep 2021
agreements (FTAs), which it sees as the foundation attract investors. Current Account to GDP (%) 5 2.4 Dec 2019
for a significant development
Government Debt to GDP (%) 46.7 43.5 Dec 2020
strategy in the coming years
to transform Vietnam into Government Budget (% of GDP) -5.8 -4.4 Dec 2020

a manufacturing center, Manufacturing PMI 51.7 54.3 Mar 2022

international trade hub, and
Corporate Tax Rate (%) 20 20 Dec 2021
critical link in the global supply
Personal Income Tax Rate (%) 35 35 Dec 2021
chain. Vietnam had signed 16
FTAs as of early 2022, including Source: Trading Economics
with key partners such as the
United Kingdom, Canada, the

Furthermore, the current global

economic situation, which has
just experienced the epidemic,
the cold war, and wars such
as Russia versus Ukraine,
has shifted many countries'
investment and production
positions. As a result, if Vietnam
quickly capitalizes on China's
production shift, it will have
a "golden opportunity" to
participate more deeply in the
global value chain, allowing
Vietnam to enter a new
position. Things are different
on the international stage.
Source: TMS Consultancy, Research

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LIST OF COMPANIES MOVED FROM CHINA TO VIETNAM (2020-2022) LIST OF COMPANIES ARE MOVING FROM CHINA TO VIETNAM

Foxconn Technology Group (Taiwan), the world’s largest contract electronics manufacturer, According to some information, many other corporations, including Sharp, Nintendo, and
announced a factory project in Bac Giang province, causing a surge of activity in the market Komatsu from Japan, as well as Lenovo from Hong Kong, have announced plans to relocate
between 2020 and 2021. This project specializes in the production of tablets and laptops, with a or expand production in Vietnam... LG (Korea) will pour an additional $1.4 billion into a large
capacity of approximately 8 million units per year and a total registered investment capital of 270 foreign investment project in Vietnam in 2021, bringing the total investment capital in Hai
million USD. Hanwa (Korea), which manufactures aircraft spare parts, relocated to Hanoi; Yokowo Phong to $4.65 billion, making it the largest FDI project in this locality.
(Japan), which manufactures automotive equipment, relocated to Ha Nam; and Huafu (China),
which manufactures textiles, relocated to Long An.

Companies New Location in Companies New Location in

No. Logo Nationality Industry No. Logo Nationality Industry
Name Vietnam Name Vietnam

1 Foxconn Taiwanese Bac Giang TC – Electronics 1 Sharp Japanese TBD PC Production

Computer hardware
2 Pegatron Taiwanese Hai Phong Electronics 2 Lenovo Chinese Bac Ninh
manufacturing

Aero engine
3 Hanwha Korean Hanoi 3 Nintendo Japanese TBD Electronics
manufacturing

Automotive antenna Source: TMS Consultancy, Research

4 Yokowo Japanese Ha Nam
components

Cotton, yarn, fabrics

5 Huafu Chinese Long An
and clothing

6 TCL Chinese Binh Duong TV – Electronics

Source: TMS Consultancy, Research

According to TMS Market Research, this trend will continue to gain traction; in fact,
more and more multinational corporations want to establish production bases in
Vietnam. Some investors consider Vietnam to be a “rising star” in the Asia-Pacific
supply chain. According to a World Bank (WB) report, the Covid-19 epidemic is still
complicated, but attracting FDI into Vietnam is increasing to encourage foreign
investors to continue to place their trust in Vietnam. Particularly in the industrial real
estate industry.

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II. SOME FACTORS COMPARED TO

OTHER COUNTRIES IN THE REGION
POPULATION GDP GROWTH RATE MANUFACTURING PMI
Vietnam had a total population of nearly 97.6 million people as of In general, Vietnam’s GDP growth rate was higher than that of other According to the graph, Vietnam’s PMI in 2021 was in the top four, trailing
March 2022, accounting for 1.24 percent of the global population. The Southeast Asian countries, but it was still three times lower than that of only Taiwan, Indonesia, and Malaysia. However, Vietnam’s PMI increased
male population accounted for approximately 49.8%, while the female China. Vietnam’s economy grew by 2.58% in 2021, according to the General slightly from 52.5 points to 53.7 points in early 2022, placing it third in the
population accounted for 50.2%. Vietnam was ranked third in Southeast Statistics Office. The Covid-19 epidemic severely impacted all sectors region behind Taiwan and Indonesia.
Asia (after Indonesia and the Philippines) and fifteenth overall. of the economy, causing the growth rate to be lower than predicted by With the situation reversed and the economy gradually improving, TMS
international organizations. Many economic localities will be affected, research Department expects the PMI index to rise to around 2% - 5%
According to TMS Market Research Department data, China has the
particularly in the third quarter of 2021. The key to preventing epidemics is Y-o-Y, and Vietnam’s PMI point to rise to around 55 points next year.
largest population among Asian countries and is 14 times larger than
to implement long-term social distancing. In terms of GDP, Vietnam ranks
Vietnam. The population chart clearly showed our country’s human MANUFACTORING PMI 2022
fifth among Southeast Asian countries, with approximately 352 billion USD.
resources in the region.
Vietnam is expected to re-establish its 6-7 percent growth rate prior
ASIAN COUNTRIES POPULATION | Q1 2022
to Covid-19, re-establishing its position as the ASEAN region’s fourth
largest economy, according to the TMS Market Research Department.

VIETNAM & ASIAN COUNTRIES GDP GROWTH RATE | 2021

Dec 2021 Jan 2022

Source: Trading Economics

MANUFACTURING PRODUCTION
Source: Trading Economics
POLITICAL The graph of the manufacturing production growth index showed that
Vietnam had a high index when comparing to Malaysia, China, and Taiwan
Political stability index (-2.5 weak; 2.5 strong) in South East Asia. Particularly,
Source: World Bank in Dec 2021. Malaysia, on the other hand, had the highest manufacturing
the average for 2020 based on 9 countries was -0.07 points. The highest
SALARY OF MANUFACTURING INDUSTRY production growth index in early 2022. Due to the global epidemic situation,
value was in Singapore: 1.47 points and the lowest value was in Philipines:
Vietnam’s production growth index fell by more than 70% in January 2022
-0.24 points. Vietnam is one of the more politically stable countries in As shown in the Manufacturing Industry Salary chart, Vietnam offers many
compared to December 2021.
South East Asia, with the average for 2020 was -0.07 points, ranked 5th opportunities for investors due to low production costs and much lower
among South East Asia countries. Below is a chart for all countries where wages than countries such as China (4 times), Malaysia (3 times), Indonesia MANUFACTURING PRODUCTION | 2022
data are available. (5 times), and Thailand (1.4 times).
POLITICAL STABILITY AND ABSENCE OF VIOLENCE SALARY OF MANUACTURING INDUSTRY (2017 - 2021)
IN SOME ASEAN COUNTRIES

Dec 2021 Jan 2022

Source: Trading Economics

Source: Trading Economics Source: Trading Economics

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III. VIETNAM
WAGE (BY ZONE) IN VIETNAM TRADE BALANCE
According to the chart below - The salary of some typical cities in 2022, as Despite continuing to face many difficulties due to complicated
well as representatives of three regions: North, Central, and South - the developments of the Covid-19 epidemic, high transportation costs, and
average salary of the Southern region is higher than that of the other political tensions between Russia and Ukraine, Vietnam’s import and
regions. The Central region remains the lowest. In which case, the average export turnover in Q1/ 2022 strong recovery. Recorded a high growth
salary in Ho Chi Minh City is approximately 635 USD/month/person, followed compared to the same period last year, estimated at 176.35 billion USD, up
by Hanoi, Binh Duong, and Hai Phong, which are major cities in Vietnam 14.37% over the same period last year. Generally, in the first quarter of 2022,
with average salaries exceeding 600 USD/month/person. In Vietnam, all of export turnover of goods was estimated at 88.6 billion USD, up 12.9% over
these cities have numerous Industrial Parks and Economic Zones. the same period and import turnover was estimated at 87.77 billion USD,
up 15 9% over the same period last year. In the future, Vietnam’s economy
SALARY BY CITIES/ PROVINCES IN VIETNAM | 2021
is forecasted to be more prosperous, growing at about 6.8% thanks to the
fiscal stimulus package to support investment activities and the reduction
of VAT to promote the recovery of consumption.

EXPORT & IMPORT OF GOODS BY QUARTER | 2018 - 2022

Source: TMS Consultancy, Research

GDP GROWTH OF INDUSTRIAL PRODUCTION (IIP)

From 2020, the Covid-19 pandemic has severely affected the world economy Because of the impact of regional and global economic conditions, this Source: General Statistics Office Vietnam
and Vietnam is no exception. Before the Covid-19 epidemic occurred, the index of industrial production fluctuated more and was more volatile, as
VIETNAM’s PMI
GDP growth rate reached a high level, more than 7%/quarter. However, in shown in the chart. And, as a result of the serious epidemic situation, this
the context of the “new normal” after the Covid-19 epidemic and Vietnam index fell to a negative level the most, particularly in Q3/2021. However, According to chart, Vietnam Manufacturing PMI (2019 - 2022) fluctuated
began to reopen for international visitors after March 15. Vietnam’s GDP the industrial production index continued to thrive in the first quarter of stably from 34 to 55 points. In the first quarter of 2020, Vietnam’s PMI
growth rate in Q1/2022 increased by 5.03%, higher than the growth rate of 2022, with the total industry’s value-added increasing by 7.07 percent over dropped to 32.2 points because of the negative effects of COVID-19.
the same period in 2021 (4.72%) but lower than the growth rate of the same the same period last year, with manufacturing increasing by 7.79 percent; In particular, the group of consumer goods and intermediate goods
period in 2018 - 2019. In which, the region agriculture, forestry and fishery electricity production and distribution increased steadily; and mining and manufacturing was most affected due to the shortage of Chinese input as
by 2.45%; the industry and construction sector increased by 6.38% and the quarrying increased positively due to an increase in coal and metal ore. well as weak demand. However, in Q1/2022, Vietnam’s PMI reached to 55
service sector by 4.58%. under control and Vietnam re-opened economic activities on 15 March. points, increased about 8% Y-o-Y. It signals a solid improvement in business
conditions that was the most marked since April last year. Both output and
In the future, Vietnam’s economy is forecasted to be more prosperous, According to TMS’s Market Research Department forecasts that new orders increased at a high rate in the opening month of the year as
growing at about 6.8% thanks to the fiscal stimulus package to support Manufacturing PMI of Vietnam may continuously increase approx. 56 customer demand continued to enhance as the COVID – 19 pandemic was
investment activities and the reduction of VAT to promote the recovery of points in the next month and recover from May 2021 approx. 45 points under control and Vietnam re-opened economic activities on 15 March.
consumption.
IIP IN VIETNAM | 2018 - 2021 According to TMS’s Market Research Department forecasts that
VIETNAM GDP GROWTH RATE BY QUARTER | 2018 - 2023F
Manufacturing PMI of Vietnam may continuously increase approx. 56
points in the next month and recover from May 2021 approx. 45 points

VIETNAM MANUFACTURING PMI

Source: General Statistics Office Vietnam Source: GSO Vietnam & TMS Research Source: Trading Economics & TMS Research

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FDI
VIETNAM FDI BY QUARTERS | 2015 - 2022
As of Q1/2022, although the global economy was heavily affected by the Covid-19 pandemic,
Vietnam’s selective investment attraction policy began to take effect. Total newly registered
capital, adjusted and contributed capital to buy shares, buy contributed capital reached over
USD 8.9 billion, up 7.8% over the same period in 2021 and the whole country has 322 number
of registered projects. new. It is forecasted that 2022 will be a favorable year for attracting
international capital flows thanks to the decision to open the door to welcome international
visitors to Vietnam on March 15. And moreover, Vietnam continues to be a safe, attractive
and potential investment destination for foreign investors.In the future, Vietnam’s economy
is forecasted to be more prosperous, growing at about 6.8% thanks to the fiscal stimulus
Source: MPI Vietnam
package to support investment activities and the reduction of VAT to promote the recovery
of consumption.
TOP COUNTRIES INVEST TO VIETNAM WITH HIGH REGISTERED
There were 65 countries and territories investing in Vietnam in the first 3 months of 2022. VALUE FIRST QUARTER | 2015 - 2022
Singapore led the list with total investment capital of nearly USD 2.29 billion, accounting
for 25.7% of total investment capital in Vietnam (a decrease of 50.1% compared with the
same period in 2021; Korea ranked the second with nearly USD 1.61 billion, accounting for
18% of total investment capital (a year-on-year increase of 35.6%). With a large-scale Lego
project worth over USD 1.3 billion of total investment capital, Denmark ranked the third
with total registered investment capital of nearly USD 1.32 billion, accounting for 15.3% of
total investment capital, a decline of 29.3% over the same period last year. Next were China,
Netherlands, Japan and so on.

The foreign investors had invested in 44 provinces and cities nationwide in the first 3 Source: MPI Vietnam
months of 2022. Binh Duong led the list with total registered investment capital of nearly
USD 2.32 billion, accounting for 26% of total investment capital, and 5.2 times more than the VIETNAM FDI BY PROVINCES | FIRST QUARTERS 2022
same period in 2021. Bac Ninh ranked the second with total registered investment capital of
nearly USD 1.42 billion, accounting for 15.9% of total investment capital.

Although Thai Nguyen didn’t attract new projects but with two large-scale projects
registered for adjustment of investment capital, Thai Nguyen ranked the third with total
registered capital of nearly USD 934 million, accounting for 10.5% of total investment capital.
Next were Hanoi, Hai Phong, Ho Chi Minh City and so on.

Regarding the number of new projects, foreign investors still focused on investing in big
cities with convenient infrastructure such as Ho Chi Minh City and Hanoi. In which, Ho Chi Source: MPI Vietnam
Minh City led both in number of new projects (39.4%), paid-in capital for share purchase
(68.7%) and ranked the second in number of adjusted projects (13.2%, after Hanoi that was
VIETNAM FDI BY PROVINCES | FIRST QUARTERS 2022
15.4%).

In the first 3 months of 2022, the processing and manufacturing led with total investment
capital of over USD 5.3 billion, accounting for 59.5% of total registered investment capital.
The real estate business ranked the second with investment capital of over USD 2.7 billion,
accounting for 30.3% of total registered investment capital. It was followed by professional,
scientific and technological activities, and electricity production and distribution with the
total registered capital of over USD 200.4 million and USD 194.6 million, respectively. The
rest were other sectors.

Source: TMS Consultancy, Research

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IV. PERFORMANCE OF INDUSTRIAL PARKS

OVERVIEW

Supply

According to the graph, the supply of industrial parks has

gradually increased over time. In the first nine months of
INDUSTRIAL PARKS IN VIETNAM
2021, the Prime Minister approved 41 investment projects
totaling approximately 7,670 ha to construct new industrial
park infrastructure (the list is attached). As a result, by the
end of September 2021, there will be 563 industrial zones
in Vietnam’s development planning (including industrial
zones in coastal economic zones and border gate economic
zones) with a total natural land area of about 210.9 thousand
hectares, accounting for about 0.6 percent of the country’s Source: TMS Consultancy, Research

total natural land area and 4.1% of total non-agricultural land

area in the national land use planning for the 2016-2020
period.

397 IPs have been established out of the 563 planned for IPS IN VIETNAM
development (including 352 IPs located outside the EZs, 37
IZs located in coastal EZs, and 08 IZs located in border gate
EZs), with a total area of natural land reaching approximately
122.9 thousand ha. The industrial land area was approximately
82.6 thousand ha, accounting for approximately 67.2
percent of the natural land area. 291 industrial zones have
been operationalized out of the 397 established industrial
zones, with a total natural land area of approximately 87.1
thousand hectares, industrial land area of approximately
Operating Upcoming
58.7 thousand hectares, and 106 industrial zones in the
Source: TMS Consultancy, Research
process of development constructed on a total natural land
area of approximately 35.7 thousand ha, industrial land area
of about 23.8 thousand ha.
Source: TMS Consultancy, Research
The total leased industrial land area of industrial zones was
about 43.3 thousand ha. Thus, in the first 9 months of 2021,
leased industrial parks across the country leased about 520
hectares more than at the end of 2020.

By the end of September 2021, the occupancy rate of

established industrial zones across the country reached
about 52.5%. If only industrial zones have been put
into operation, the occupancy rate will reach over 72%,
approximately compared to the end of 2021.

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LIST OF INDUSTRIAL PARKS/ZONES IN

Investment VIETNAM REGION

About Foreign Investment About Domestic Investment Vietnam’s industrial parks are located throughout
the country and are primarily concentrated in three
It is estimated that in the first nine It is estimated that in the first nine regions: the Northern Region, the Central Region,
Northern Region
months of 2021, industrial zones and months of 2021, industrial zones and and the Southern Region. Each region has distinct
economic zones nationwide attracted economic zones nationwide attracted characteristics as well as distinctive incentive programs. The Northern region includes 25 provinces & cities, with the Northern Key
Economic Zone (NKEZ) such as Hanoi, Hai Phong, Bac Ninh, Hai Duong, Hung
about 453 new investment projects and about 435 new investment projects
Yen, Quang Ninh, Vinh Phuc and Bac Giang.
590 projects with increased investment and 160 projects to increase investment
capital with newly and additionally capital with the newly and additionally >> General information
registered capital of about 10.2 billion registered capital reaching about 189.5 Total land area (ha) 19,500 KEY OCCUPIERS BY SECTOR | 2022
USD (up 8.7% in newly and additionally thousand billion dong (up 7.2% in newly Average Net Lease
$100
registered capital compared to the same and additionally registered capital (USD/sqm/one-off term)

period in 2020). compared to the same period in 2020). Average Rental Price
3.5 - 5
(USD/sqm/month)
Accumulated to the end of September Accumulated to the end of September Occupancy Rate (%) >70%
2021, industrial zones and economic 2021, industrial zones and economic
Cap Rate (%) 5% - 10%
zones across the country had about zones across the country had about
10,975 valid production and business 9,900 valid production and business
projects of foreign investors with a total projects with a total registered capital of
registered capital of about 230.1 billion about 2.54 million billion dong. In which,
According to the chart below, leasing land prices and occupancy rates
USD. In which, about 8,257 projects have about 7,043 projects have been put into
gradually increased in Q1/2022, averaging more than 100 USD/sqm/term and
been put into operation with a total operation with a total implemented
a 75% occupancy rate. The leasing land price in Ha Noi and Hai Phong, as well
implemented investment capital of investment capital of about 1.15 million
as the occupancy rate, are the highest in the Northern Region. As a result of
about 160.2 billion USD, accounting for billion VND, accounting for about 45.4%
many investors putting money into Vietnam, the occupancy rate may rise by
69.6% of registered investment capital. of registered investment capital.
5-10%. Not only will the land lease price increase (approx. 7 - 12 percent), but so
will the warehouse/factory rental rate (approx. 5 - 7 percent) with the average
rental rate of Q1/2022 was 3,5 – 5 USD/sqm/month. And because of its location
Occupancy
and infrastructure, this region is currently the hottest in Vietnam.
In the first quarter of 2022, the occupancy rate of established industrial zones across
the country reached about 60.5%. If only industrial zones have been put into operation, According to TMS’s Market Research Department, the rental price is expected
the occupancy rate will reach about 70.9%, approximately compared to the end of to rise by 5% to 10%. Because land capacity was limited and the North area’s
2022. transportation infrastructure was rapidly developing.

OCCUPANCY RATE OF SOME CITIES/PROVINCES IN VIETNAM

Q1 2022

Source: TMS Consultancy, Research Source: TMS Consultancy, Research

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Central Region Southern Region

The Central region comprises 19 provinces & cities, with the Central key The Southern region includes 19 provinces & cities, with the South key
Economics Zone (CKEZ) including Da Nang, Thua Thien Hue, Quang Nam, Economics Zone (SKEZ) including Ho Chi Minh City, Binh Duong, Dong Nai, Ba
Quang Ngai and Binh Dinh, especially Da Nang is where most of the main Ria - Vung Tau, Long An, Binh Phuoc, Tay Ninh and Tien Giang. The Southern
economic activities such as tourism, trade, industry. region is especially the key economic region of Vietnam and is the place with
the highest foreign direct investment (FDI) among the three regions.

>> General Information

>> General Information KEY OCCUPIERS BY SECTOR | 2022 KEY OCCUPIERS BY SECTOR | 2022
Total land area (ha) 44,900
Total land area (ha) 18,300
Average Net Lease
Average Net Lease $125
$65 (USD/sqm/one-off term)
(USD/sqm/one-off term)

Average Rental Price Average Rental Price The graph below depicts current land lease prices and occupancy rates
2.2 - 4.0 3.5 - 5.0
(USD/sqm/month) (USD/sqm/month) in Vietnam’s cities and provinces. The leasing price of land for industrial
Occupancy Rate (%) >80% parks varied greatly across Vietnam. The average land lease price in the
Occupancy Rate (%) >50% Northern Region ranged from $75 to 160 USD/sqm/term. The leasing
price in the Central Region was the lowest, ranging from 55 to 65 USD/
Cap Rate (%) 2-5
sqm/term. The average land lease price in the Southern Region was the
Source: TMS Consultancy, Research highest, ranging from 80 to 185 USD/sqm/term.
Source: TMS Consultancy, Research

In general, industrial zones in the Central Region have low land rental rates Land rental prices in industrial zones in the South were higher than in other
compared to the Northern and Southern Region. Land lease price ranged regions of Vietnam, with the average rental price in Q1 / 2022 being around
from 55 USD /sqm/term to 65 USD/sqm/term and Danang city and Quang 125 USD /sqm /term. Furthermore, the price of land for rent in the Southern
IPS PERFORMANCE IN SOME CITIES/ PROVINCES
Nam Province has highest land rental price and occupancy rate in the Central Region will rise by about 5% to 10% over the same period last year, with Ho
IN VIETNAM | Q1 2022
Region as the below chart. Chi Minh still leading the country and the region. Binh Duong and Dong Nai
has continued to attract a large number of investors, with occupancy rates
Not only was the land leasing price the lowest in Vietnam, but so was the
approaching 90%. Some industrial parks in Binh Duong are currently 100%
factory rental rate, which ranged from 2,0 USD/sqm/month to 4,0 USD/sqm/
occupied, such as My Phuoc 1, VISIP, etc.
month. As a result, the cap rate in this region was only about 2% to 5%, with
Danang City having the highest cap rate in the Central Region due to higher According to the chart below, the average leasing land price is also higher
rental rates than the surrounding provinces/cities. than in other regions, ranging from 80 USD/sqm/term to 185 USD/sqm/
term. The leasing land price in HCM City still leads to the Southern Region.
IPS PERFORMANCE IN SOME CITIES/ PROVINCES | Q1 2022
And the cap rate in the Southern Region is approximately 6 – 8%, which is
comparable to the current saving rate (7%/year).

IPS PERFORMANCE IN SOME CITIES/ PROVINCES | Q1 2022 Source: TMS Consultancy, Research

Source: TMS Consultancy, Research

Source: TMS Consultancy, Research

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OPPORTUNITIES AND PROSPECTS

To attract a lot of investors or developers in investing into our Business environment that is open: Vietnam’s operational efficiency
Vietnam, especially in Industrial Parks/Zones of Vietnam next time, for development steps has steadily increased. Here are some key
our country has some prospects as well as opportunities as below: highlights from recent years to help you visualize the business
environment in Vietnam:
Recent trade conflicts have accelerated the process of global value
chain shifts, in which investment in production of some stages - Growth rate of GDP
from China to Vietnam. The “China + 1 strategy” is being pursued by
- Socio-political and macroeconomic stability are important
multinational companies to find a foreign country in China to avoid
factors in the expansion of Vietnam’s business potential
a rapidly rising labor wage in the country, but it needs to be close
enough to be able to export back to China. With the above criteria, - The EVFTA will eliminate nearly 99 % of customs duties between
along with the accession to a series of free trade agreements in the the EU and Vietnam, and is expected to be a driving force in
past time, Vietnam has been and remains the first priority choice. the Vietnamese economy’s future growth.
And besides, the first month of 2020 pandemic – COVID 19 outbreaks
In addition, some outstanding M&A deals were as follows:
in China have impacted not the least investors in this country. Some
countries, therefore, have gradually moved their factories to Vietnam. (1) Boustead Projects Co., Ltd. acquired 49% stake in KTG & Boustead
To develop Vietnam’s industry in the coming time should follow the Logistics Industry Joint Stock Company. The partnership brings
Party’s policy in Resolution No. 23-NQ / TW dated March 22, 2018 one together 13 real estate properties with a total asset value of up
of the Party Central Committee on directions for building national to $141 million, covering approximately 840,000 square meters
industrial policies in 2030, and a vision to 2045. of land area and approximately 550,000 square meters of total
leased space.
A knowledgeable and competitive workforce: Vietnam has a well-
educated workforce that is ready to serve in high-skill industries like (2) ESR Cayman Limited has a joint venture with BW Industrial
information technology, pharmaceuticals, and financial services at a Development JSC (BW to develop 240,000 square meters of
lower cost than other countries in the region. industrial real estate in My Phuoc 4 industrial park near Ho Chi
Minh City.
Economic Stability: Macroeconomic and fiscal policies have
remained stable, with GDP growth ranging from 6% to 7%, which is (3) Vietnam Industrial Park Group Joint Stock Company has
quite high in the region. acquired a land fund of 250 hectares with an investment
capital of 300 million USD, spreading across the country from
Geographical location and market potential: The plateau and the
Bac Giang, Hai Phong, Hai Duong to Dong Nai and Long An.
Red River Delta dominate the northern landscape, while the central
mountains, low-lying coastal areas, and the Mekong River Delta (4) VSIP, Amata Bien Hoa and Sumitomo Corporation established
dominate the southern landscape. Vietnam has a beautiful sea route a limited liability company with two or more members (joint
with a length of 3,444 km, which is ideal for developing the maritime venture) to jointly invest in, build, develop and operate an
industry, trade, and tourism in particular, and rising to become a industrial park in Quang Tri province.
world shipping center in general. As a result, the diverse geographical
(5) Vina Dai Phuoc Company, the investor of Swan Bay Dai Phuoc
structure, including mountainous, highland, and coastal areas, lends
project, also had a change in key shareholder when SNC
itself to integrated economic zones.
Investments 27 (92% stake)
The legal environment has vastly improved: The management
system in Vietnam is highly regarded for its open business
environment, transparent investment policy, and favorable profit-
based incentives for businesses.

17 18
Note: The property market research contained is verified to the best of TMS
Consultancy’s abilities. TMS Consultancy reports reflect an overview of the
current property market and are indicative research only. TMS Consultancy
does not guarantee the accuracy of research and forecasts contained herein.
TMS Consultancy does not accept any responsibility for losses arising from
reliance on the research and forecasting. TMS Consultancy recommends that
the reader obtain a detailed market study of the specific sector of interest
should a deeper understanding of the market be required.

INDUSTRIAL
REPORT
Q1 | 2022

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