The automotive industry in Vietnam is still underdeveloped in terms of manufacturing compared to other ASEAN countries, but the accumulation of industrial land banks for this industry has been increasing. Large players in the market already plan to build enormous automotive manufacturing hubs such as THACO with the Chu Lai – Truong Hai Complex in Quang Nam Province and VinFast with its automotive complex in Hai Phong City.
Furthermore, well-known foreign car assemblers, including Toyota, Mitsubishi and Mercedes-Benz have been releasing their own expansion plans. The expansion is strongly supported by the rapid improvement of expressway networks and deep-sea ports connecting industrial and logistics hubs, he said.
Car part manufacturers and suppliers have also joined the game with increasing land enquiries recorded in recent years. Demand is generated widely from clients in all car parts production, implicating an enhanced automotive supply chain.
This report highlights the opportunity for real estate developers for increasing demand for production expansion amid the current limited supply. It also discusses the distinct competitive advantages that each region in Vietnam enjoys, based on the difference in business and production nature as well as land availability.