Real Estate Services

Market Update

Vietnam Industrial Market

CBRE | Real Estate Services Proposal | October 2011

VIETNAM INDUSTRIAL MARKET OVERVIEW

Vietnam is divided into 63 provinces and
cities
Industrial market is one of the key
components driving the economy.
More than 250 industrial parks (IPs) in
operation employing over 1 million
people.
Many IPs are improving infrastructure and
in mode of expansion.
3 main areas: Southern, Central, and
Northern Key Economic Regions (SKER,
CKER, and NKER).

CBRE | Real Estate Services Proposal | October 2011

SKER - Land Rental

NKER - Land Rental

Key Industrial Parks

Key Industrial Parks

US$ per / sqm for term

US$ per / sqm for term

LAND RENTAL
REMAINDER OF TERM (e.g. Purchase)

300

250
200
150

100
50
0

300
250
200
150
100
50
0

2007

2008

2009

2010

2011

2007

2008

2009

2010

2011

Low Range

17

32

50

53

35

Low Range

30

40

46

50

48

High Range

108

143

220

260

260

High Range

75

150

242

250

250

US$ per / sqm for term

CKER - Land Rental

Key Industrial Parks

80

But only nominal increase

experienced from 2009 2010,
under 10%

60
40
20
0

Land rent increased between

30-60% in 2008 and 2009

2007

2008

2009

2010

2011

Low Range

10

15

18

25

27

High Range

20

30

45

55

70

CBRE | Real Estate Services Proposal | October 2011

Rents in NKER have caught up

to the rental level of SKER and
the CKER has remained steady

NB: Above based on Landlord quoted Asking Rentals p/sqm , p/month

RBF / WAREHOUSE RENTAL RENTAL & LEASING COST RANGES

Not much change in RBF rents over the

last couple of years
More stock on the market than ever
before.
Standard build-to-suit factory requires
about 4-5 months for construction
NKER has attracted more attention
CBRE | Real Estate Services Proposal | October 2011

NB: Above based on Landlord quoted Asking Rentals p/sqm , p/month

AVERAGE REGIONAL LABOUR COST

JETRO survey of monthly labor costs in
Asia (2010)
4000
3500
3000
2500
2000
1500
1000

Operators
Engineers
Managers

500
0

Minimum wage for foreign invested enterprises in Hanoi and HCMC =

US$83 per/ month (approximately)

CBRE | Real Estate Services Proposal | October 2011

INDUSTRIAL SERVICES TRACK RECORD

2011 Vietnam Appointed Clients

The above include: Office + industrial Requirements, Build To Suit, + Industrial / land sales
Page 6

RECENT MNC SUCCESS STORIES

New Entrants + Expansions (Last 6-12months)
1.

2.

3.
4.
5.
6.
7.

8.
9.
10.
11.

CapGemini (France) consulting, technology,

outsourcing, just opened its outsourcing & software
center in late December 2010 at Centre Point in Ho Chi
Minh City (2200m2, 150 staff) (CBRE deal)
First Solar (US), leaders in solar panel manufacturing,
received & started construction of its $US1 billion plant
in March 2011 to produce thin filmed solar panel using
46 hectares of land in Dong Nam Cu Chi Industrial
Park in Ho Chi Minh City
Procter & Gamble opened its third plant (6 ha) at VISP 2
in Binh Duong in July 2010
Intel opened its 1$US chip making plants in Saigon HiTech Park in Ho Chi Minh City in late October 2010
Nokia to invest $US 276 million in a head set
production plant in North Vietnam (CBRE deal)
Pepsi Co to invest $US 73 million in a new plant in VSIP
Bac Ninh
Swarovski enetred the Vietnam market acquiring 5
hectare in Amata in Dong Nai for its jewellery assembly
plant to complement existing operations in Thailand for
South East Asia market
Lafarge pumped in $20 million to triple its capacity at its
plant in Hiep Phuoc IP
Unilever Recently entered its expansion phase at its
100,000 sqm warehouse at VSIP 1 Industrial Park in
Binh Duong, HCMC
Kyocera Mita has committed to build a mobile part
manufacturing plant
Logoplastie leased 5,000m2 RBF Dong An 2 IP in Binh
Duong

CBRE | Real Estate Services Proposal | October 2011

APPENDICES

CBRE | Real Estate Services Proposal | October 2011

PROFESSIONAL PROFILE - INDUSTRIAL

Greg Ohan

As National Head of Industrial & Logistics, and Global Corporate Services in Vietnam, Greg is the
contact point for all inbound regional corporate and regional clients within both the industrial and
office sector as well as driving the expansion of CBREs Industrial team. Gregs strengths are in client
management and Tenant Representation with a strong focus on ensuring start to finish accountability
across all business lines. Greg joined CBRE in Sydney in 2006 where he worked as a sales and lasing
agent for the South Sydney Commercial and Industrial team. In 2008 Greg joined CBRE Hong Kong
as part of its Office Services Tenant Representation Team where he solely represented a number of
multinational tenants in Transaction Management. In 2011, Greg joined the CBRE Vietnam team to
build on CBREs existing regional Asia platform and help drive the business in Vietnam.

National Head of Industrial &

Logistics

MAJOR TENANT REPRESENTATION TRANSACTIONS 2010

Vietnam

Client

Square Feet

Transaction Type

greg.ohan@cbre.com

Daiwa Capital Markets

110,000

Lease Renewal + Expansion

Louis Vuitton Moet Hennessy

Diageo Asia Pacific (LVMH)

100,000

Lease Renewal + Expansion

35,000

Lease Renewal + Expansion

Publicis Groupe

80,000

Renewal V Relocation

Hewlett Packard (HP)

17,000

Lease Surrender

40,000

Renewal V Relocation

T: 848 3824 6125

F: 848 3823 8418
Clients Represented
Austcham (Australian Chamber of
Commerce)
Baxter Health Care
China Life Franklin
Caesars Asia Limited

Moet Hennessy Diageo Hong Kong

Dow Jones Newswires

Hewlett Packard (HP)

Swiss Reinsurance

Kimberly Clarke Hong Kong

Kodak Hong Kong
Lend Lease

Client

Square Feet

Transaction Type

Novartis Pharmaceuticals

PCCW

217,000

Lease Renewal + Expansion

Pramerica

Citibank

14,441

Lease Renewal

WPP Group Communications

59,817

Lease Renewal

Temasek Holdings

BNP Paribas

41,589

Lease Renewal

Thai Military Bank (TMB)

Fitness First

21,613

Lease Renewal

M&C Saatchi

Richly Leader
Simplex Capital Asia

Page 9

MAJOR LANDLORD REPRESENTATION TRANSACTIONS 2010

PROFESSIONAL PROFILE INDUSTRIAL

PROFESSIONAL EXPERIENCE
Prior to CBRE, Hieu Le worked for Saigon Hi-Tech Park and Spire Research as investment manager
and country representative respectively.
Hieu has a deep understanding of industrial and high tech development in Vietnam with a strong
ability to source and close business deals. His expertise includes licensing (high tech status, investment
license, construction license and relevant permits) & leasing (land, office, ready built factory) to provide
ease of start-up for high tech companies.

Hieu Le
Manager
Vietnam
Tronghieu.le@cbre.com
T: 848 3824 6125
F: 848 3823 8418

His key clients include:

Intel Products Vietnam
Data ogic Scanning
Nidec Group
Jabil Circuit
Bosch
CMC
Vinagame
TMA
CMC
Tien Phuoc

EDUCATION
Wisconsin Madison, School of Business, United States, MBA in International Business
Institute of International Relations, Hanoi, Vietnam
Page 10