The race to expand industrial parks explodes - PHU HUNG TRADING AND SERVICE JSCPHU HUNG TRADING AND SERVICE JSC

New industrial parks are continuously announced across provinces and cities, and many key projects have begun operating despite the complicated Covid-19 epidemic.

Savills Vietnam’s industrial real estate market report for the first 6 months of the year said that the race to expand industrial parks is heating up even though the fourth epidemic is complicated.

In the first half of the year, the supply of industrial land increased by 9.3% over the same period in 2020, with dozens of industrial park projects in 13 provinces and cities approved, promising to provide thousands of hectares of land area. for investors over the next few years.

Bac Ninh has the largest number of projects with 5 upcoming industrial parks. Notably, Que Vo III industrial park with an area of 208.54 hectares, has a total investment capital of 120.87 million USD and Gia Binh II industrial park with an area of 250 hectares (developed by Hanaka Group) has a total investment capital of 120.87 million USD. Investment capital is 172.17 million USD. In the Central region, Quang Tri also hopes for new projects such as Trieu Phu industrial park with a total area of nearly 529 hectares.

In addition, Quang Tri industrial park has an area of 481.2 hectares, total investment capital of 90.17 million USD, developed by a joint venture of 3 investors including Vietnam – Singapore Industrial Park (VSIP) and the Company. Amata City Bien Hoa shares.

Vinh Phuc province also expects several new industrial parks with a total supply of 500 hectares such as Song Lo, Tam Duong 1, Thai Hoa – Lien Son – Lien Hoa. In addition, new projects are expected to be developed in Hai Duong, Vinh Long, Quang Nam, Thua Thien Hue, Nam Dinh and Nghe An.

Thị trường kho bãi, hậu cần, cảng công nghiệp phía Đông TP HCM. Ảnh: Quỳnh Trần.

Along with the wave of industrial real estate in the North and Central regions, the industrial park market in the South was also vibrant in the first half of the year. Colliers Vietnam’s second quarter industrial real estate market report said that in the South, Long An announced that this year there will be 4 new industrial clusters: Vinh Khang, Tan My, Tu Phuong and Hiep Hoa.

Once completed, these industrial clusters will contribute nearly 200 hectares to the province’s available industrial land area. It is expected that this province’s industrial cluster development plan for the period 2021-2030 will be further promoted to attract more investment.

Vinh Long and Tay Ninh provinces are also blooming with industrial park projects in the past 6-12 months, becoming emerging industrial park areas next to the established and strongly developed southern industrial capitals. strong for decades such as: Ho Chi Minh City, Long An, Binh Duong, Dong Nai.

Even the little-noticed province of Binh Phuoc took the opportunity to catch this industrial real estate wave. Currently, Binh Phuoc has been approved by the Prime Minister to plan 13 industrial parks with a total area of 4,686 hectares. Of these, 9 industrial parks have been put into operation with an occupancy rate of over 95%, two newly put-into-operation industrial parks are attracting the attention of many domestic and foreign investors: Minh Hung Sikico and Minh Hung Sikico. Becamex Binh Phuoc.

According to these survey units, the country currently has 370 industrial parks with a total area of 115,200 hectares. Of these, 328 are operating outside economic zones, 24 industrial zones are located in coastal economic zones and 8 industrial zones are located in border gate economic zones. These projects have created about 3.6 million jobs for workers.

Mr. David Jackson, General Director of Colliers Vietnam, said that industrial real estate continues to be vibrant and is the “brightest” segment compared to other asset types in the real estate market in the context of an increasingly severe pandemic. complex variables. Besides industrial land, factories, and warehouses, with the strong growth momentum of e-commerce, the logistics service sector also promises great potential.

CEO Colliers confirmed that the shift of production from China as well as a series of Free Trade Agreements (FTAs) being signed have increased the demand for industrial land across the country. New industrial parks have been planned or built across the Northern, Central, and Southern provinces to meet this demand, leading to the industrial real estate market exploding in recent times despite the epidemic.

However, according to Mr. David Jackson, the second half of this year will pose some challenges for Vietnam when the disease spreads rapidly, penetrating industrial zones causing major outbreaks across the country.

Although there are many opportunities, Mr. David Jackson believes that attracting foreign investment into Vietnam’s industrial real estate still has some bottlenecks: infrastructure is not synchronized and logistics costs are not competitive. some issues regarding mechanisms and legal regulations to attract large investors. If these weaknesses can be improved, the market can develop at a faster and more sustainable pace.