Kirin Views 31 | Industrial property: Promises to explode in 2024?

In recent sessions, the stock market recorded developments in the industrial park real estate, and many codes recorded outstanding price increases. Let’s join Kirin Capital to research and evaluate the growth prospects of industrial park real estate in 2024.

01 | In 2023, Vietnam recorded a substantial FDI capital into Vietnam

Specifically, the total registered FDI capital in Vietnam reached more than 36.6 billion USD, an increase of 32.1% compared to 2022, especially the implemented capital of foreign investment projects is estimated to get more than 23.1 billion USD – the highest level ever. In addition, as of January 2024, according to data from the Foreign Investment Agency – Ministry of Planning and Investment, FDI reached more than 2.36 billion USD, an increase of 40.2% over the same period in 2023. This shows that Vietnam continues to be an attractive destination for foreign investors.

02 | The rental prices increased over the same period

The average rent in 2023 increased by about 20% compared to the previous period. In particular, the average rental price in the north of Vietnam is about 135 USD/m2/rental period, an increase of 33% compared to 2022. The average rental price in the South reaches 188 USD/m2/rental period, an increase of 15% compared to 2022.

03 | The business results of the industrial park real estate are also positive in the fourth quarter of 2023

Most businesses’ profits after tax in the fourth quarter of 2023 will grow enormously. Meanwhile, “blue chips” stocks like BCM’s profit more than 36 times, IDC’s is 2.6 times, SIP’s increase (+4 0.1%), SZC’s is (+ 49.3%), D2D’s is (+19.7%), LHG’s is (+90.1%), DTD’s is (+115.7%) and especially KBC profit reached 75 billion while the same period lost nearly 500 billion…

Vietnam has about 412 industrial parks with a total area of 217,500 hectares. Of these, 293 industrial parks have been put into operation with an industrial land area of about 63,000 hectares and 119 industrial parks are under construction with an industrial land area of about 24,700 hectares. In 2023, the country will have 7 more industrial parks in operation and 13 industrial parks under construction.

In 2024, Kirin Capital estimates that FDI capital will continue to increase enormously, especially capital flows from the US and EU in the semiconductor, chip, and high-tech industries, bringing positive things to the industrial property stocks.

Kirin Views is the second series of Kirin Capital towards the goal of “Know Vietnam, Long Vietnam”. This column provides Kirin’s observations and opinions on Vietnamese market through in-depth research driven by an expert team with decades of experience, assisting investors at home and abroad in better understanding the potential opportunities of Vietnam and join hands with “Know Vietnam, Long Vietnam”.