Industrial land rents soar as foreign investors flock to Vietnam

In the north, rents average US$138 per square meter, up from $102, according to real estate consultancy Savills Vietnam.

In southern industrial hubs like Binh Duong, Dong Nai, Ba Ria Vung Tau, and Long An provinces and Ho Chi Minh City, they have risen from $152 to $174.

Binh Duong, Dong Nai and Ho Chi Minh City have occupancy rates of 99%, 96% and 95% respectively.

"Only Long An and Ba Ria Vung Tau provinces have vacant industrial lands for lease with occupancy rates of 85% and 78%," John Campbell, associate director, head of industrial services at Savills, said. "The market is in dire need of new supply in Binh Duong, Dong Nai and Long An."

A recent report by Savills said industrial parks nationwide have an average occupancy rate of over 80%.

Vietnam has 397 industrial parks with a combined leasable area of 122,900 hectares, with 106 with an area of 35,700 ha now under construction. 10,000 sq.m make a hectare.

The country attracted over $20.2 billion worth of FDI in the first nine months this year, up 7.7% from the same period last year. Of this, $14 billion is in manufacturing, a year-on-year rise of 15.5%, according to the Foreign Investment Agency.

Savills said it has been receiving an increasing number of requests and site surveys from multinationals in manufacturing, logistics, e-commerce, and others, reflecting the growing demand for industrial land.

Fulian Precision Technology Component, a subsidiary of Foxconn, recently paid $62.5 million for renting 45 ha of land until February 2057 in the Quang Chau Industrial Park in the northern Bac Giang Province to assemble iPads and AirPods for Apple.

Chinese tire maker Shandong Haohua Tire has rented 43 ha in the Minh Hung - Sikico Industrial Park in the southern Binh Phuoc Province.