A study by property consultant Savills of industrial real estate in 54 cities in 21 countries shows that Vietnam has among the lowest warehouse rents in the world. In addition, the study showed that Sweden is among the markets with the highest warehousing operation costs together with the UK and Tokyo.
According to VN Express, the favorite FDI destinations include Hanoi and HCMC because there the warehouse rents, labor costs, and electricity and fuel prices are among the lowest in the world. In Hanoi, it is around $5 per square foot, and in HCMC it is under $10.
Troy Griffiths, deputy managing director of Savills Vietnam, stated that Vietnam’s government has been investing heavily in infrastructure while promoting industrial clusters to attract businesses higher up the value chain, besides corporate taxation relief.