Illustrative photo (Source: VNA) Hanoi (VNS/VNA) — Vietnam’s industrial zones property located near the sea is attracting great attention to investors as they maintain high occupancy rates and rental prices, heard attendants at a recent Hanoi conference.
According to CBRE, by the third quarter of 2020, the total land for the industrial development of five main industrial cities and provinces in the north including Hanoi, Bac Ninh, Hung Yen, Hai Dương, and Hai Phong accounted for 13,800ha in which 9,600ha of leasable industrial land. The average occupancy rate of the industrial park remained at 79 percent.
Industrial zones (IZs) in Hanoi, Hai Duong, and Bac Ninh have average occupancy rates of about 90 percent. For the southern market, the total industrial land area is double that of the northern region, reaching about 38,000ha, of which 24,000ha of leasable industrial land including HCM City, Binh Duong, Long An, Dong Nai, and Ba Ria – Vung Tau with an average occupancy rate of nearly 77 percent. CBRE noted that the supply of industrial land ready to hand over in IZs in both regions was scarce.
Vietnam’s coastal regions are starting to receive as much investment as demand from both domestic firms expanding production and multinational corporations.
Consequently, the coastal provinces have been taking advantage of the available potential to develop the industries. Compared to other provinces in the northern region, Hai Phong and Quang Ninh have more supply allocated for industrial development.
Hai Phong is one of the biggest industrial hubs with significant projects such as DEEP C II and III and Vinhomes' new IZs. As of the third quarter of 2020, the city recorded an average occupancy of 56 percent providing a recent launch of big industrial parks.
Quang Ninh recently emerges as an industrial coastal province. The province is expected to provide a large amount of industrial land bank in the future, with two economic zones (EZs) of Quang Yen and Van Don.
“To attract investors, Quang Ninh prioritises the development of the processing and manufacturing industries. Secondary investors will have the highest corporate tax incentives in economic zones and - receive short-term vocational training costs for employees in the first 2 years from the date of issuance of investment certificate,” said Vice Chairman of Quang Ninh People's Committee Bui Van Khang.
Le Trong Hieu, Director of Advisory and Transaction Services, Industrial and Office at CBRE said the COVID-19 pandemic and trade tensions have disrupted global supply chains, Vietnam is one of the attractive destinations for investors of companies with production lines in China.
“However, this trend is being interrupted by the US Presidential election, the Biden administration is expected to have drastic changes in economic policy, such as reducing tensions with China and re-joining the CPTPP. According to discussions with a number of companies interested in moving to Vietnam, investors are waiting to determine US policy under the new presidency to take appropriate steps,” he said./.
VNA
