What Makes Ba Ria – Vung Tau's Industrial Property So Appealing?

As a leading industrial property consultant in Vietnam, Savills assisted FUCHS in securing its long-term land lease at Phu My 3 Specialized IP in BRVT in 2022. The long industrial land lease reflects Ba Ria – Vung Tau’s appeal as an industrial destination. Phu My 3 Specialized IP is home to notable international and local industrial tenants.

In March 2022, FUCHS, a leading German lubricants manufacturer, signed a 55-year, 20,000 m² lease at Phu My 3 Specialized Industrial Park in Ba Ria – Vung Tau. In September 2023, it inaugurated the first phase of its €9 million high-tech lubricants plant, which will meet growing local and regional demand for diverse, high-quality lubricants.

Ba Ria – Vung Tau is a rising star in Vietnam’s industrial real estate market, with occupancy of industrial land rising from 72% in 2022 to 78% by 8M/2023. The province had the largest land price increase in the south of Vietnam at 35% YoY to US$128/ m²/one-off term in H1/2023, partly with increases at Phu My 3 Specialized IP.

Browse Industrial Property in Ba Ria – Vung Tau.

John Campbell, Associate Director and Head of Industrial Services, Savills Vietnam, commented in Savills Industrial Insider 8M/2023: “HCMC has a commercial port, Cat Lai. However, HCMC’s long-established supply chain of manufacturers has resulted in traffic congestion surrounding the city. Fortunately, as Cai Mep Thi Vai Port in Ba Ria – Vung Tau reaches its potential, it will accommodate large container vessels and serve as a gateway to international trade, easing the congestion near HCMC.”

Globally, FUCHS is one of the leading independent suppliers of innovative lubrication solutions with 6,000 employees in over 50 countries. Its goal across its global operations is to progress sustainably and efficiently. FUCHS has been active in Vietnam with a sales office since 2013.

The first phase of its new 20,000 m², state-of-the-art plant has been completed and delivers offices, laboratory spaces, production and filling, a tank farm, and a warehouse with a capacity of 20,000 tonnes per year. The factory is a welcome addition to Vietnam’s industrial real estate market. FUCHS high-performance production portfolio includes automotive oils, industrial oils, metal working fluids and products for the mining industry. Production will start in the fourth quarter of 2023.

"This is a historic moment for FUCHS Vietnam. We are celebrating the expansion of our global presence and the strengthening of our local capabilities here at the right time, as Vietnam is an emerging market with great growth potential and plays a key role in diversifying supply chains. We are excited to be part of Vietnam's promising future with our new plant while providing even better product solutions and services to our customers," Daniel Henn, Managing Director FUCHS Vietnam, adds.

John Campbell says: “This project reflects FUCHS' dedication to being part of Viet Nam's burgeoning market. Our work as industrial property consultants means we partner with esteemed clients like FUCHS and help them enter expanding industrial markets like Ba Ria – Vung Tau. On the back of the currently limited availabilities in Binh Duong and Dong Nai, destinations like Long An and Ba Ria - Vung Tau are increasingly popular with industrial occupiers and developers in Viet Nam. As a coastal province, Ba Ria – Vung Tau offers an additional level of convenience to manufacturers looking to export given the Cai Mep port cluster.”

For more information on Vietnam’s industrial real estate market, download Savills Industrial Insider 8M/2023. For comprehensive support, including Industrial consultancy services, industrial landlord services, tenant representation, logistics solutions, and industrial market research, contact John Campbell.