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CBRE | Real Estate Services Proposal | October 2011
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
LAND RENTAL –
REMAINDER OF TERM (e.g. Purchase)
Land rent increased between
30-60% in 2008 and 2009
But only nominal increase
experienced from 2009 – 2010,
under 10%
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
2007 2008 2009 2010 2011
Low Range 10 15 18 25 27
High Range 20 30 45 55 70
0
20
40
60
80
US$ p
er / sq
m for term
CKER - Land Rental
Key Industrial Parks
2007 2008 2009 2010 2011
Low Range 17 32 50 53 35
High Range 108 143 220 260 260
0
50
100
150
200
250
300
US$
pe
r /
sqm
fo
r te
rm
SKER - Land RentalKey Industrial Parks
2007 2008 2009 2010 2011
Low Range 30 40 46 50 48
High Range 75 150 242 250 250
0
50
100
150
200
250
300
US$
pe
r /
sqm
fo
r te
rm
NKER - Land RentalKey Industrial Parks
CBRE | Real Estate Services Proposal | October 2011 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
AVERAGE REGIONAL LABOUR COST –
JETRO survey of monthly labor costs in
Asia (2010)
0
500
1000
1500
2000
2500
3000
3500
4000
Operators
Engineers
Managers
Minimum wage for foreign invested enterprises in Hanoi and HCMC =
US$83 per/ month (approximately)
Page 6
The above include: Office + industrial Requirements, Build To Suit, + Industrial / land sales
INDUSTRIAL SERVICES TRACK RECORD
2011 Vietnam Appointed Clients
CBRE | Real Estate Services Proposal | October 2011
RECENT MNC SUCCESS STORIES
New Entrants + Expansions (Last 6-12months)
1. 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)
2. First Solar (US), leaders in solar panel manufacturing,
received & started construction of its $US1 billion plant
in March 2011 to produce thin filmed solar panel using
46 hectare’s of land in Dong Nam Cu Chi Industrial
Park in Ho Chi Minh City
3. Procter & Gamble opened its third plant (6 ha) at VISP 2
in Binh Duong in July 2010
4. Intel opened its 1$US chip making plants in Saigon Hi-
Tech Park in Ho Chi Minh City in late October 2010
5. Nokia to invest $US 276 million in a head set
production plant in North Vietnam (CBRE deal)
6. Pepsi Co to invest $US 73 million in a new plant in VSIP
Bac Ninh
7. 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
8. Lafarge pumped in $20 million to triple its capacity at its
plant in Hiep Phuoc IP
9. Unilever – Recently entered its expansion phase at its
100,000 sqm warehouse at VSIP 1 Industrial Park in
Binh Duong, HCMC
10. Kyocera Mita has committed to build a mobile part
manufacturing plant
11. Logoplastie leased 5,000m2 RBF Dong An 2 IP in Binh
Duong
CBRE | Real Estate Services Proposal | October 2011
APPENDICES
Page 9
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 CBRE’s Industrial team. Greg’s 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 CBRE’s existing regional Asia platform and help drive the business in Vietnam.
Greg Ohan
National Head of Industrial & Logistics
Vietnam
T: 848 3824 6125 F: 848 3823 8418
Clients Represented
Austcham (Australian Chamber of Commerce)
Baxter Health Care
China Life Franklin
Caesars Asia Limited
Dow Jones Newswires
Hewlett Packard (HP)
Kimberly Clarke Hong Kong
Kodak Hong Kong
Lend Lease
M&C Saatchi
Novartis Pharmaceuticals
Pramerica
Richly Leader
Simplex Capital Asia
Temasek Holdings
Thai Military Bank (TMB)
Client Square Feet Transaction Type
Daiwa Capital Markets 110,000 Lease Renewal + Expansion
Louis Vuitton Moet Hennessy
Diageo Asia Pacific (LVMH)
100,000 Lease Renewal + Expansion
Moet Hennessy Diageo Hong Kong 35,000 Lease Renewal + Expansion
Publicis Groupe 80,000 Renewal V Relocation
Hewlett Packard (HP) 17,000 Lease Surrender
Swiss Reinsurance 40,000 Renewal V Relocation
MAJOR TENANT REPRESENTATION TRANSACTIONS 2010
Client Square Feet Transaction Type
PCCW 217,000 Lease Renewal + Expansion
Citibank 14,441 Lease Renewal
WPP Group Communications 59,817 Lease Renewal
BNP Paribas 41,589 Lease Renewal
Fitness First 21,613 Lease Renewal
MAJOR LANDLORD REPRESENTATION TRANSACTIONS 2010
PROFESSIONAL PROFILE - INDUSTRIAL
Page 10
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.
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
Hieu Le
Manager
Vietnam
[email protected] T: 848 3824 6125 F: 848 3823 8418
PROFESSIONAL PROFILE – INDUSTRIAL