Illustrative image (Photo: VNA) Germany’s Framas Group recently leased a ready-builtwarehouse with an area of 20,000sq.m at KTG Industrial Nhon Trach 2 in thesouthern province of Dong Nai.
Fabian Urban, director in charge of footwear technology atFramas Vietnam, said that the reason for choosing Vietnam to open the factoryis that the facilities here are superior to those in other locations.
Pham Truong Son, head of the Management Board of Da Nang Hi-Tech Park andIndustrial Zones, said that to shorten the project implementation time, manyinvestors choose to hire ready-built factories. In this local high-tech park, large-scaleand modern factory projects are being built for lease. For example,the Long Hau JointStock Company’s 30ha factory project with a totalinvestment of more than 1 trillion VND (43.7 million USD) has beencompleted and handed over to two Japanese enterprises.
Doan Duy Hung, director general of IIP VIETNAM - the largestindustrial real estate portal in Vietnam, stated that new-generation industrialzones and clusters which have features related to logistics, warehouses,factories, especially service urban areas, are attractive to investors. Manyindustrial park investors have paid much attention to service issues.
Savills Hanoi Director Matthew Powell commented thatcompared to regional countries, Vietnam has more favourable conditions withmore affordable real estate prices and many new projects that will increasesupply in the future.
Competitive labour cost and the improved legal corridor arealso among factors attracting investors to the country, he said.
Powell highlighted that many famous brands’ selection ofVietnam as their strategic destination has helped promoted FDI attraction andenhance the country’s prestige in the world arena.
He listed reasons making the industrial real estate inVietnam attractive, including prices, large number of prestigious developers,labour resources, convenient transport network, easy access to internationalsea ports and airports, and incentives from the State.
Besides, political stability, abundant investmentopportunities and support from the local government, as well as the country’sadministrative reform efforts are also other factors luring investors toVietnam instead of China, India or Thailand, according to Powell.
In recent years, many localities have paid much attention toimproving the investment and license granting procedures. Like in the southernprovince of Long An, numerous enterprises can receive investment certificateswithin one day. Coca-Cola, for example, could receive it after only four hoursafter submitting its dossier when it invested in a 136-million-USD factory atPhu An Thanh industrial zone of the southern locality./.
VNA
