Ho Chi Minh City: Urban logistics real estate promotes e-commerce

In Ho Chi Minh City, the boom of e-commerce has reshaped the logistics market, turning urban logistics real estate into an attractive investment sector. The sharp increase in online shopping has created high demand for warehouse space, especially near urban centers where consumption is large.

Vietnam's e-commerce market, according to the "Southeast Asia E-commerce Report 2020" released by Google, Temasek and Bain & Company, is expected to reach a value of 52 billion USD by 2025, at a pace annual growth of 29% from 2020 to 2025. This has spurred a new wave of investment in urban logistics real estate projects, to meet increased demand for transport and storage of goods. High.

Experts from Cushman & Wakefield highlight the growing interest from the media and investment community in urban logistics real estate. This sector not only supports traditional retail activities but is also a pillar for logistics services, with infrastructure including seaports and international airports as a fulcrum.

However, high urban delivery costs, accounting for 50% of total supply chain costs, have forced e-commerce and logistics investors to seek solutions for quick access to city centers in the short term. within 30 minutes. This requires heavy investment in warehouses near urban centers or suburban areas, where land prices are lower and there is less opposition from stakeholders.

According to data from Cushman & Wakefield, Ho Chi Minh City currently accounts for about 14% of the total warehouse supply in the important southern economic region with about 5.5 million m2. Storage space requirements are increasingly diverse, from small warehouses to large warehouses for retailers and logistics service providers.

The need for space for urban logistics real estate is increasing, especially in large cities such as Hanoi and Ho Chi Minh City, where there is a lack of land and suitable urban infrastructure. This requires flexibility in using old buildings or vacant land to convert them into more efficient storage spaces.

In the future, to maintain competitiveness and meet real needs, cities need to develop new urbanization strategies to optimize land use and improve logistics infrastructure. This not only reduces costs and logistical challenges but also contributes to the sustainable development of urban areas in Vietnam.