With the participation of major foreign investors such as Logos and GLP in the local market, the nation looks set to continue being a popular destination for international industrial property investors moving forward.

A media representative of Logos, a member of the ARA Asset Management Co, Ltd, officially confirmed that the firm is in the process of mobilising capital of US$1.2 billion in order to invest in both the country and in the Republic of Korea.

Of the figure, approximately US$400 million is set to be poured into Logos's core business based in Vietnam. including e-commerce logistics along with food and cold storage.

Furthermore, GLP, a Singapore-based global corporation that specialises in logistics, real estate, infrastructure, finance, and technology, is reportedly eyeing the Vietnamese market. Despite this speculation, information regarding the group's investment in the Vietnamese market has yet to be confirmed.

Most notably, the impending participation of giant foreign investors in the country proves that the Vietnamese market is fast becoming a magnet for international industrial real estate investors.

At present, the industrial real estate market locally remains in the early stages of development, with participation mainly led by major foreign investors such as VSIP, Mapletree, DEEP C, WHA, and Ascendas, as well as domestic companies such as KTG, Beijing, and Becamex.

Paul Tonkes, director of Industrial and Logistics Services at Cushman & Wakefield Vietnam, said Vietnam is one of the most competitive manufacturing hubs in the world, ranking second only behind China.

Moreover, last year, the country also came in fourth place in an annual ranking of the most suitable locations for global manufacturing, with the list featuring 48 countries in Europe, the America, and the Asia-Pacific region.

Data from Focus Economics indicates that the nation’s Industrial Production Index enjoyed a bounce back in June with a year-on-year increase of 7%, the majority of which was driven by recoveries in manufacturing and electricity production.

Industrial output is projected to grow by 2.71% during the year and is expected to expand to 9.2% by 2021, indicating a number of positive signs for growth within the sector.