RoK firms leasing more office space in Hanoi than in HCM City
Enterprises from the Republic of Korea (RoK) have been paying due attention to leasing office space in Hanoi, according to a recent survey by real estate consultants Savills Vietnam.
Office space leased by RoK enterprises in Hanoi is 60 percent higher than in Ho Chi Minh City. Samsung is the largest investor in Vietnam, primarily in the northern provinces of Bac Ninh and Thai Nguyen.
Japanese investors, meanwhile, lease the same amount of office space in the two cities.
Hoang Nguyet Minh, commercial leasing director at Savills Hanoi, said the capital welcomed three Grade A office projects in the fourth quarter of 2020 and first quarter in 2021 - Capital Place, with 93,000 sq.m, Thaiholdings Tower with 23,000 sq.m, and Leadvisors Tower with 18,000 sq.m.
Occupancy at Grade A buildings stood at over 80 percent in the period, she added.
As of the end of the first quarter of this year, the total office space available for lease in the market amounted to more than 2 million sq.m, a 10 percent increase year-on-year.
Grade A posted the highest growth, of 24 percent, while the figure for Grade B was 9 percent.
Meanwhile, Districts 2 and 7 and Thu Duc district in HCM City hold potential in office space.
Foreign direct investment (FDI) directly influences the number of foreign tenants and has been on the rise in recent years, except in 2020.
Vietnam attracted 38 billion USD in FDI in 2019 - the highest in a decade - then 28.5 billion USD last year. The figure for the first quarter was 10.13 billion USD, up 18.5 percent year-on-year.
Over 70 percent of tenants in Hanoi are local businesses and those from Japan, the Republic of Korea, the US, and Singapore, and the figure is predicted to continue to increase in the time to come.
Office space leased by RoK enterprises in Hanoi is 60 percent higher than in Ho Chi Minh City. Samsung is the largest investor in Vietnam, primarily in the northern provinces of Bac Ninh and Thai Nguyen.
Japanese investors, meanwhile, lease the same amount of office space in the two cities.
Hoang Nguyet Minh, commercial leasing director at Savills Hanoi, said the capital welcomed three Grade A office projects in the fourth quarter of 2020 and first quarter in 2021 - Capital Place, with 93,000 sq.m, Thaiholdings Tower with 23,000 sq.m, and Leadvisors Tower with 18,000 sq.m.
Occupancy at Grade A buildings stood at over 80 percent in the period, she added.
As of the end of the first quarter of this year, the total office space available for lease in the market amounted to more than 2 million sq.m, a 10 percent increase year-on-year.
Grade A posted the highest growth, of 24 percent, while the figure for Grade B was 9 percent.
Meanwhile, Districts 2 and 7 and Thu Duc district in HCM City hold potential in office space.
Foreign direct investment (FDI) directly influences the number of foreign tenants and has been on the rise in recent years, except in 2020.
Vietnam attracted 38 billion USD in FDI in 2019 - the highest in a decade - then 28.5 billion USD last year. The figure for the first quarter was 10.13 billion USD, up 18.5 percent year-on-year.
Over 70 percent of tenants in Hanoi are local businesses and those from Japan, the Republic of Korea, the US, and Singapore, and the figure is predicted to continue to increase in the time to come.
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