Trang Bui, senior director of office, retail, industrial and logistics services at real estate consultancy Jones Lang LaSalle (JLL) Vietnam, said in a recent report that the company is recording a surge in demand from e-commerce firms looking for 10-15 hectare storage centers.

The surge is happening despite the Covid-19 pandemic and the approaching year-end shopping season, she said.

An aerial view of Tan Tao Industrial Park in Binh Tan District, Ho Chi Minh City in July 2020.

The report noted that major sales days of the season, Single’s Day on November 11, Black Friday on November 27, Christmas Eve and New Year’s Eve, have increased demand for more storage space as e-commerce players race to deliver their products within 24 hours.

Data from another real estate consultancy CBRE Vietnam shows that in the third quarter this year, the supply of storage space and ready-built factories in northern Vietnam rose 25.3 percent year-on-year to 2.1 million square meters.

The growth rate is 28.2 percent to 2.7 million square meters in the southern region.

Prices of storage space have increased by 5-10 percent in the period as e-commerce booms, CBRE said.

Other industry insiders say that another reason for increasing storage demand are travel restrictions imposed because of the Covid-19 pandemic in the second quarter this year, which resulted in more customers for e-commerce companies.

The JLL report said that development of the e-commerce sector will boost logistics related real estate in the near future.

Shopee is top-ranked e-commerce platform in Buzz Rankings

Shopee, a leading e-commerce platform in Southeast Asia and Taiwan, has come out on top as the most positively discussed e-commerce platform in Vietnam.

Vietnam’s e-commerce market to rocket to 13 billion USD in 2020

The size of Vietnamese e-commerce market is likely to hit 13 billion USD this year thanks to a large percentage of young residents and internet subscribers, according to insiders.

Vietnam E-Pavilion on e-commerce platforms debuts

The Vietnam E-Pavilion on e-commerce platforms was rolled out by the Ministry of Industry and Trade (MoIT)’s E-Commerce and Digital Economy Department in Ho Chi Minh City on December 2.

Year-end promotions heat up e-commerce market

The year-end online shopping frenzy has kicked off with giant local and foreign players like Lazada, Tiki, Sendo, and Shopee rolling out promotions since the middle of last month.

E-commerce to give firms more export chances

Vietnam has been recording strong development in e-commerce, through which businesses will have more chances to promote export, an official said at a workshop in Hanoi on October 18.

Source: VnExpress