DongNai: Web portal

https://dongnai.gov.vn

Businesses Increasing Investment in Rental Factories

(News Portal – Dong Nai) - The consistent appeal of both foreign and domestic investment in Vietnam's industrial parks has driven strong demand for industrial land. In addition to businesses leasing land to build factories, the segment of rental factories has also gained significant interest, especially in the key southern economic region. 

cee598e3233bc078469434166d929839-2024-11-25.10-18-26.jpg

A section of rental factories owned by KCN Viet Nam Group Joint Stock Company in Nhon Trach 5 Industrial Park. 

The rental factory market shows differentiation, with high-quality, well-invested factory complexes in industrial parks drawing considerable attention, while standalone factories outside industrial parks remain relatively quiet.  

A Growing Rental Factory Market

According to CBRE Vietnam, a market research firm, nearly 420,000 m² of warehouse space and 543,000 m² of factory space were leased in the southern primary market during the first three quarters of the year—almost double the amount compared to the same period last year. The rental prices for ready-built warehouses and factories in the southern market have remained stable compared to the previous quarter, at $4.6 and $4.9 per m²/month, respectively. These prices reflect growth rates of 2.7% year-on-year for warehouses and 0.4% for factories.

CBRE Vietnam forecasts that industrial land rental prices in the south will increase by 3–7% per year over the next three years. Meanwhile, rental prices for ready-built warehouses and factories are expected to experience a modest annual increase of 1–4%, with the ready-built factory segment expecting faster growth during this period.

Due to high market demand, both domestic and international corporations are actively investing in rental factories. For example, at Loc An-Binh Son Industrial Park (Long Thanh District), the rental factory project by New Generation Construction and Development Corporation (Ho Chi Minh City) has been completed and has successfully attracted tenants. These factories are strategically located near Long Thanh Airport, allowing for quick access to deep-water ports in Ho Chi Minh City, Dong Nai, and Ba Ria-Vung Tau. Following the success of its first phase, the second phase of the project is scheduled to start construction in 2026. With this expansion, New Generation Construction and Development Corporation aims to provide higher-quality, modern, and well-equipped factory spaces for its partners.

Similarly, in October, KCN Viet Nam Group JSC began construction on a ready-built warehouse project spanning 14.5 hectares in Zone D of Nhon Trach 6 Industrial Park, with completion expected by Q2 2025. This latest investment in Dong Nai is being developed to LEED Gold standards, ensuring compliance with sustainability requirements for international investors. In addition to its existing projects in Ho Nai Industrial Park (Trang Bom District) and Nhon Trach 5 Industrial Park, the company expects the new project in Nhon Trach 6 Industrial Park to deliver world-class warehouse space, further contributing to the logistics sector and attracting foreign investment to the region.

Delivering High-Quality Rental Factory Solutions

Experts note that opportunities in the rental factory market are not evenly distributed between standardized factories in industrial parks and standalone factories outside these zones. The rental and sales prices of small, scattered factories in residential areas are declining significantly, with absorption rates also falling.

This decline can be attributed to several factors: most standalone factories outside industrial parks lack legal documentation, are built on agricultural land, do not meet area standards, and are not equipped with adequate infrastructure. Additionally, stricter government regulations on safety—particularly fire prevention—have made this segment less attractive. On the other hand, rental factories within industrial parks are fully compliant with legal requirements, meet land-use standards, adhere to fire safety and environmental regulations, align with zoning plans, and are equipped with comprehensive industrial infrastructure.

In Dong Nai, with over 1,000 hectares of available commercial land ready for exploitation, Sonadezi Corporation is a leading industrial infrastructure business in the province. Sonadezi and its subsidiaries are actively developing a network of standardized factories at strategic locations, alongside offering industrial land leases. To date, Sonadezi has built and operated over 100 factories across several industrial parks, including Long Thanh, Chau Duc, Thanh Phu, Giang Dien, Xuan Loc, and Nhon Trach 2.

As customer demands for rental factories continue to diversify and become more stringent, Sonadezi is expanding its supply across multiple segments, offering tailored construction solutions to meet specific customer requirements. These solutions comply with construction standards, fire safety regulations, and optimal technical specifications for various industrial sectors.​

Meanwhile, Mr. Hardy Diec, Managing Director of KCN Viet Nam Group JSC, reaffirmed the company's commitment to developing green buildings that save energy and minimize environmental impact. These efforts aim to meet the increasingly high standards of international investors.  

Author: Bao Nguyen

You did not use the site, Click here to remain logged. Timeout: 60 second