Germany’s Henkel, a maker of adhesives, sealants, and functional coatings, has launched a second application center in Thanh Hoa, northern Vietnam. This expands its support for leading sports sports and fashion brands in Asia-Pacific and Greater China.
The launch of this new application center is part of Henkel’s growing investment in Vietnam in particular to better serve customers in the north. Henkel’s new center aligns with a trend of foreign businesses opening new factories in Vietnam. This is due to its convenient location, attractive tax breaks, and low-cost labor. Over the past two years, several foreign businesses, such as Foxconn, LEGO, Amkor Technology, and PepsiCo, have all launched new factories in Vietnam.
Notably, this trend has positively impacted Vietnam’s industrial land market, even amidst a slowdown in the real estate market more broadly. According to a CBRE report released in May, industrial land rental rates in Tier 1 markets in the Northern and Southern regions experienced a year-on-year increase of 7.8 percent and 2.4 percent, averaging US$133 and US$189 per square meter, respectively.
Furthermore, Vietnam construction firms specializing in industrial production also benefit. For example, Coteccons Construction, a leading Vietnamese industrial construction company, signed more than VND 5 trillion or US$196.43 million of new contracts from March to May of this year.
See also: How to Open a Factory in Vietnam: Ultimate Guide 2024