The establishment of the Vietnam Industrial Real Estate Association - New Impetus for Industrial Development

PhD. Nguyen Van Khoi, Chairman of the Vietnam National Real Estate Association (VIREA), stated that on January 18, 2024, at Vinpearl Landmark 8, Ho Chi Minh City, the Congress of the Vietnam Industrial Real Estate Association for the term 2024-2029 will take place. The official announcement of the establishment of the Association marks a new and crucial step in recognizing and supporting the development of Vietnam's industrial real estate sector during the era of the Fourth Industrial Revolution. This period requires Vietnam to adapt, integrate, and participate in the global value chain amidst circular economy models, digital economies, green economies, etc.

Looking back at 2023, a year marked by various fluctuations and challenges in different real estate segments, industrial real estate was still considered a "bright spot" with high occupancy rates and positive rental growth.

Industrial zones have become focal points attracting investment projects both domestically and internationally, contributing to Vietnam's position on the economic map of the region and the world. Many domestic enterprises, initially starting as investors in the development and infrastructure of industrial zones, have evolved into diversified conglomerates with the capability to expand into foreign markets.

Coastal economic zones have effectively utilized their economic advantages. Zones like Chu Lai, Dung Quat, Vung Ang, and Nghi Son have attracted numerous large industrial projects across various sectors. Among them, businesses investing in warehouse leasing, equipment manufacturing, and construction materials production are distinctive features of industrial real estate.

Investors in infrastructure development for export processing zones, industrial zones, high-tech zones, and industrial clusters have made significant contributions to Vietnam's industrialization and modernization. This transition in the economic structure focuses on increasing the industrial sector's share and technological value. It has attracted both domestic and foreign investments, improved the investment and business environment, addressed employment issues, developed urban areas, promoted sectoral and regional linkages, and contributed to environmental protection and international relations.

High-tech zones have attracted nearly 300 investment projects with a total registered capital of over USD 17 billion, involving the participation of many world-renowned corporations. In 2022, these projects generated around USD 27 billion in high-tech product exports, with over USD 23 billion in exports.

In response to the country's general development needs, the Vietnam Industrial Real Estate Association, affiliated with the Vietnam National Real Estate Association (VNREA), has been established. Its primary goal is to create a conducive environment for real estate industrial businesses nationwide to share experiences, support business development, and increase profitability.

VIREA is a social-professional organization representing businesses involved in investing and developing infrastructure for industrial zones, industrial clusters, companies investing in manufacturing and trading various industrial real estate products within and outside industrial zones, industrial clusters, logistics, and related financial organizations. It encompasses all economic sectors and contributes to the sustainable development of the industrial real estate sector, fostering the country's industrialization, modernization, and international integration.

The mission of VIREA is to collaborate, connect, support, and jointly develop the profession, enhancing operational efficiency and safeguarding the legitimate rights of its members. It plays a part in building and developing the sustainable sectors of production, services, investment, and management of industrial real estate in Vietnam. Leveraging its accumulated experience in managing industrial zones and attracting investments over the years, VIREA aims to provide practical insights and actions within the Vietnamese industrial sector.

With its crucial mission and role, the Vietnam Industrial Real Estate Association (VIREA) hopes to usher in a new chapter, accompanying and contributing to the prosperity and development of the Vietnamese industrial real estate sector.