With numerous superior advantages, the market for industrial warehouses for rent in Hai Duong’s industrial parks is heating up day by day.
Many Advantages
Recently, Mingtejia Electronics Technology Co.,Ltd. (China) rented over 2,400 m2 of warehouse space in the Cong Hoa Industrial Park (Chi Linh) to implement their project. Each year, this enterprise will produce and process about 4 million plastic trays and boxes, and inspect and sort 3.7 million phone screens. The total investment is 1.2 million USD (equivalent to nearly 30 billion VND). “Compared to land leasing, renting a warehouse has saved us a lot of time and cost. It took us only about 4 months to get the project fully operational,” said a representative from Mingtejia Electronics Technology Co.,Ltd.
The representative shared, in the context of inflation and high-interest rates, the trend of leasing pre-built warehouses is always the top choice for businesses. Renting a warehouse helps businesses preserve capital due to low investment costs. Administrative procedures are also easier compared to land leasing for project deployment.
According to the investor of An Phat Complex Industrial Park, compared to building their own, the option of renting a finished warehouse with ready-to-connect infrastructure is particularly attractive to foreign investors because of its many outstanding advantages. Firstly, it helps save a significant amount of costs including design, construction, appraisal, licensing, etc. This model also offers a variety of areas with multiple segments and pricing suitable for the capabilities of different enterprises. The lease term for warehouses is more flexible, ranging from one to several decades, allowing businesses to adjust their production scale as needed.
Currently, this model is quite suitable for small and medium enterprises, especially those looking to explore the market before making large investments. For instance, Welco Technology Vietnam Co., Ltd. (Hong Kong) rented a warehouse in An Phat Complex Industrial Park in 2019 to implement their project for manufacturing, processing, and assembling electronic circuit boards. After a year of market research, Welco Vietnam decided to lease 1.7 ha of land there to expand production with a total investment of nearly 600 billion VND.
High Demand
The market for pre-built warehouses is heating up daily due to the global shift in production lines. With a strategic geographical location and complete infrastructure, Hai Duong’s industrial real estate market, especially the industrial warehouse leasing sector, has been thriving. Over the years, this model has continuously appeared in local industrial parks like Luong Dien – Cam Dien, An Phat Complex, Cong Hoa, always maintaining a 100% occupancy rate.
Mr. Pham Trung Thai, leader of Vietnam Rubber Industrial Zone and Urban Development JSC, stated that the demands for storage, logistics, and e-commerce are creating great opportunities and potential for industrial infrastructure investors in Hai Duong. With strategically planned locations, complete infrastructure, and clear and transparent legal foundations, industrial warehouses for rent are the choice of many foreign enterprises.
“Currently, Sun Acoustic Vina in Cong Hoa Industrial Park, operating in the warehouse leasing sector with an area of about 4 ha, has attracted 4 projects with a 100% occupancy rate in just under a year. This has proven the high demand for warehouse rental from foreign businesses,” Mr. Thai noted.
Recognizing the great potential of warehouse leasing, Nam Tai International Co., Ltd. has developed Phu Thai Industrial Park into the largest warehouse hub in Hai Duong. This industrial park currently spans nearly 50 ha of warehouse space, taking up 100% of the available industrial land for lease. Due to the rising demand for ready-built warehouses, Phu Thai Industrial Park has attracted 23 projects with a total investment of about 100 million USD in just 5 years, achieving a 100% occupancy rate. Besides Phu Thai, Nam Tai is also developing the London Business Park project in Lien Ha Thai Industrial Park (Thai Binh) with 42 ha of warehouse space for rent.
Mr. Pham Minh Nam, leader of Nam Tai International Co., Ltd., stated that the current low vacancy rate in industrial real estate, coupled with increasing business demands, has spurred the rapid development of the warehouse rental model. Furthermore, this model also allows infrastructure investors to efficiently utilize land by constructing multi-story warehouses. In the future, warehouse rentals are expected to continue “heating up” the market as land rental prices rise and the e-commerce sector explodes.
Source: BaoHaiDuong
