Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Finding Opportunities in Vietnam’s Industrial Sector

16/12/2019
Vietnam currently sits as one of the top 21 largest exporters in the world, of which manufacturing goods account for more than 83% of total value of exported goods in 2017. 

Vietnam currently sits as one of the top 21 largest exporters in the world, of which manufacturing goods account for more than 83% of total value of exported goods in 2017. This number remains relatively high in comparison to India and other ASEAN nations. Export volume of manufacturing goods in Vietnam increased while most of the countries in Asia, including China, suffered a drop in the manufacturing level.

Shifts in trade flows and supply chains due to the US-China trade war have resulted in Vietnam becoming a favoured alternative destination for manufacturers. However, this growing demand also posed some challenges for the local industrial market. Below are key sector areas facing challenges that can also provide potential opportunities for investors and developers.

Agri-processing and agri-logistics

Vietnam’s supply chain from farm to table is weak and a large part of fresh produce perishes while being transported from the farmers to point of distribution or ports. Businesses doing both agriculture processing and manufacturing are facing problems in finding locations due to insufficient supply and applying for licenses. The cost of forwarding freight and trucking is also high.

Specialized zones and agri-industrial parks could be the solution. More cold chain upstream and agri-food logistics and process technology are needed. Often the existing technology is only about management and maintaining consistent qualities. Digitalizing warehouse layout and operations by using artificial intelligence could significantly improve the process. Addressing these inadequacies could not only lower the costs of logistics but improve last mile delivery as well.

Industrial parks

Developers could also harness the immense economic potential of industrial parks as incubators. Many of the secondary and primary functions in these industrial parks are properly designed and integrated to serve the business continuity of the end users. These parks can usually be found in provinces and regions that have an equally pro-business, forward thinking government, which is demonstrated by a better infrastructure planning and vision to be a model for the rest of the country.

By focusing on establishing businesses inside industrial parks with strong master planning and quality management, this could result in increased supply chain opportunities. This would also improve the quality and quantity of labour, provide sufficient and stable power and water supply as well as transport and infrastructure.

The scale is not too big for new things to try, so developers can still control it. If it works, they can easily upscale it. If it doesn’t, it’s very easy to make adjustments and keep it on track.

Related Insights

Singapore
Insights • Insights

Commentary On Q2 2022 URA Real Estate Statistics

New sales volumes picked up in Q2 2022 with 2,397 units transacted, 31.3% q-o-q higher than that in the preceding quarter given robust sales performances at major new launches.
Xian Yang Wong • 29/07/2022
istockphoto-2022-cardimage-Policy--Watch-SG
Insights • Investment

Cushman & Wakefield's Comments On Ura May 2022 Developer Sales

On the back of more launches in May, developers sold 1,356 new private homes (excluding ECs) last month – the highest monthly volumes since November 2021 when 1,547 new units were sold.
Xian Yang Wong • 15/06/2022
istockphoto-2022-cardimage-Policy--Watch-SG
Insights • Investment

Policy Watch Singapore: Budget 2022

Over the last two years, the Singapore Government dedicated a total of close to S$100 billion to combat the impact of Covid-19. 
Xian Yang Wong • 21/02/2022

Related Stories

Dexcom Philippines New Office Fit-out Project
Dexcom Philippines • Healthcare
Learn More
Cushman & Wakefield Stories
Booking.com Philippines Inc. • Travel
Learn More
Cushman & Wakefield Stories
OMD Philippines • Advertising
Learn More
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS