CBRE report notes healthy external demand key to growth in manufacturing.
Vietnam, along with India and the Philippines, recorded robust manufacturing growth in the first quarter, according to CBRE’s APAC Industrial and Logistics MarketView Quarter 1, 2015, released today. March PMI (Project Management Institute) figures all show expansions, with external demand remaining healthy.
“While there were reports of a slight fall in employment in Vietnam in March it had recorded steady growth in the previous six months,” the report said.
India is still hesitant to increase capacity as employment levels have been flat for the past 14 months. The Philippines continues to be the fastest growing manufacturing country, with industrial production forecast to increase by 10.8 per cent year-on-year in 2015.
“These South and Southeast Asian economies continue to offer lower input costs and cheaper labor and are attracting electronics and textile production to relocate from its traditional base in China,” according to the report.
In the first quarter the Asia - Pacific also saw that demand for logistics space was driven by third-party logistics provider (3PLs), e-commerce, and automotive manufacturers. There is a projected 65.6 million square feet of new logistics warehouse space being built in 2015.
“The industrial and logistics sector in Asia specifically continues to be driven by e-commerce firms and 3PLs, a trend that is driving demand for modern logistics developments and networks across the region,” Mr. Darren Benson, Executive Director of Industrial & Logistics, Brokerage Services, CBRE Asia, commented.