HO CHI MINH CITY INDUSTRIAL JUNE 2019

MARKETBEATS
2.3%
RENT GROW TH
15.6% 2,071 HA
PLANNED AND UNDER
VACANCY RATE
(YoY) CONSTRUCTION

ECONOMIC INDICATORS 12months

5M 18 5M19
HIGHLIGHTS Inflation (CPI) 3.01% 2.74%
Forecast

Optimistic economic outlook FDI (bil. US$) 9.90 16.74

Vietnam’s economy still holds a positive outlook in the short and medium term due to benefits from Trade balance
(bil. US$) 3.39 -0.54
free trade agreements, growing domestic manufacturing for exports, etc. but also bears certain risks
from reduced external demand, global financial fluctuations and restructuring progress of state- Source: General Statistics Office
owned enterprises and from the banking system. According to the latest forecast by World Bank,
AVERAGE RENTS & VACANCY RATE
Vietnam will experience diminishing GDP growth at 6.6% in 2019 and around 6.5% in 2020 – 2021. 4.0 40%

Vacancy Rate (%)

VND/sq.m/term)
Rent (million
3.0 30%
Stable supply, improved performance
2.0 20%
The total industrial stock in Ho Chi Minh City remained unchanged during the last three years, with a
total leasable area of 2,480 hectares (ha) from 19 operating industrial parks (Ips). The newest IP, 1.0 10%

recently submitted for approval, is the 380 ha Pham Van Hai IP. 0.0 0%

Steady improvement in market performance was observed. Occupancy rate increased modestly by Average rent Vacancy Rate (%)
1.5 percentage points (ppts) QoQ and 4.5 ppts YoY, to 84%. Initiatives to remove obstacles for IP Source: Cushman & Wakefield Vietnam – Research & Consultancy
investors to enhance competitiveness have been taken on recently, such as speeding up site
FUTURE SUPPLY PIPELINE UP TO 2020
clearances, improving labor productivity and skills, capital support for infrastructural development; 1,500
implementing "one-stop, on-the-spot" services. The government is now focusing on attracting high
1,000
value-added, less labor-intensive industries and applying new technologies.

ha
Rents increase marginally 500

A Cushman & W akefield The average asking rent rose 5.0% QoQ and 2.3% YoY to VND3,437,013 per square meter per term 0
Research Publication Binh Chanh Nha Be Cu Chi
(/sq.m./term), equivalent to US$147.4/sq.m./term due to rental increases in existing IPs as well as
Source: Cushman & Wakefield Vietnam – Research & Consultancy
rising investment capital into the city.
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 HO CHI MINH CITY INDUSTRIAL
MARKETBEATS JUNE 2019
PLANNED & AVERAGE RENT
Phuoc Vo INVENTORY VACANCY UNDER
Director
SUBMARKET (HA) RATE CONSTRUCTION VND/SQM/TERM US$/SQM/TERM EUR/SQM/TERM
Room 16, Level 14, Vincom Centre (HA)
72 Le Thanh Ton, District 1, HCMC South 525 500
25% VND3,948,232 US$169 €150.01
Tel: +84 8 3823 7968
phuoc.vo@cushwake.com East 182 0% 0 VND3,407,155 US$146 €129.45
North 687 11% 245 VND2,157,857 US$93 €81.98
West 700 15% 1,461 VND4,214,885 US$181 €160.14
HO CHI MINH CITY TOTAL 2,094 15.6% 2,206 VND3,437,013 US$147.4 €130.6
^All rent are inclusive of SC but exclusive of VAT
US$/VND = 23,320; US$/EUR = 0.886 as at 20 Jun 2019

SIGNIFICANT FUTURE PROJECT

PROPERTY SUBMARKET HECTARES CONSTRUCTION STATUS EXPECTED COMPLETION

Hoa Phu – Phase 2 Cu Chi 72 Under Construction 2019

Tay Bac Cu Chi – Phase 2 Cu Chi 173 Under Construction 2020
Hiep Phuoc – Phase 3 Nha Be 500 Clearance & Compensation 2020
Vinh Loc 1 – Phase 3 Binh Chanh 200 Clearance & Compensation 2020

A Cushman & W akefield

Research Publication

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Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.