Vietnam now has a strong ambition to move up the value chain and attract more higher value-added manufacturers.
Insight
Vietnam, value proposition amid the increasing competitive landscape
After more than 37 years of economic reform since 1986, Vietnam has established itself as a favoured destination for labour-intensive manufacturers looking for low operating costs. The country now has a strong ambition to move up the value chain and attract more higher value-added manufacturers.
On the other hand, the industrial and logistics real estate market has also evolved to be more diversified and complex in response to the maturity of the manufacturing market. JLL has noted five major trends in this market over the past decade.
Market is gradually maturing with the increasing presence of institutional players.
Industrial parks compete with each other not just by location and connectivity but also by the value-added services they provide.
Diversified products The rising demand for different industrial property types required developers to offer a wide range of products to serve the diverse needs of their customers.
Sustainability: The mega trend across sectors, not only in industrial real estate development.
Early signs of next movements: Vision on other advanced future developments and upcoming trends are mentioned below. Vietnam may take a while to fully implement these trends given the current stage of development.