Increased foreign investment has fuelled the industrial property marketin Vietnam, reported the English language newspaper Vietnam InvestmentReview.
According to Tran Duy Dong, Deputy Director of EconomicZone Management Department under the Ministry of Planning and Investment(MPI), improved FDI attraction has pushed the industrial propertymarket forward.
“Investment in industrial zones last yearrevealed positive trends. Giants such as Samsung and LG have had theirinvestments echoed, with satellite projects following in their wake,”Dong said in a seminar on investment promotion to industrial zones (IZs)in Vietnam late last year.
The MPI’s Foreign Investment Agencyreported that the total newly committed foreign direct investment (FDI)to Vietnam reached 21.6 billion USD in 2013, up 54.5 percentyear-on-year. Around 80 percent of this figure was focused on themanufacturing sector, driving demand for industrial locations.
SamsungElectronics invested in a 2 billion USD factory in Yen Binh IZ in thenorthern province of Thai Nguyen and is currently expanding its 1billion USD factory in Yen Phong IZ in the neighbouring Bac Ninhprovince. Meanwhile, LG Electronics also invested in a 1.5 billion USDelectronics factory in Trang Due IZ in the northern port city ofHaiphong.
“When a foreign investor builds a factory in Vietnam,it’s best for them is to build it in an IZ. We’re upbeat about thedevelopment of IZs in the year to come, as FDI projects predicted tocome into the country are on the rise,” said Nguyen Thanh Phuong,General Director of South Dinh Vu IZ in Hai Phong.
CBRE Vietnamforecasted that the IZ real estate market would remain busy becauseVietnam had emerged as an attractive destination for foreign investors.
Withgood infrastructure, good logistics networks and proximity to China andinternational ports and airports, Hanoi and Hai Phong will remainattractive IZ destinations.
“With LG’s recent announcement, itis anticipated that a shortage of ready built factories in Hai Phongwill occur,” CBRE Market Review cited.
The last quarter of 2013saw more US investors seeking investment opportunities in Vietnam as theanticipated Trans-Pacific Partnership trade agreement is slated forsigning this year.
Vietnam is currently home to 185 IZs and export processing zones (EPZs), with 104 others in the pipeline.
Inthe south, Dong Nai has received more enquiries for both land and readybuilt factories due to existing and fourth coming infrastructureimprovements such as the Long Thanh - Dau Giay highway.
In thenorth, new investors have tended to move either to Hai Duong or Hung Yenprovinces, to take advantage of cheap labour or to IZs in Hai Phongwhere tax incentives are available.
“With the incoming factoryfrom LG Electronics, land leasing and factory leasing prices in this andthe surrounding area may increase in 2014,” CBRE predicted.
Severalregulations intended to improve the investment climate took effect fromJanuary 2014, and FDI figures are likely to remain positive, with afocus on business process outsourcing, IT and fast moving consumer goodssectors.-VNA
According to Tran Duy Dong, Deputy Director of EconomicZone Management Department under the Ministry of Planning and Investment(MPI), improved FDI attraction has pushed the industrial propertymarket forward.
“Investment in industrial zones last yearrevealed positive trends. Giants such as Samsung and LG have had theirinvestments echoed, with satellite projects following in their wake,”Dong said in a seminar on investment promotion to industrial zones (IZs)in Vietnam late last year.
The MPI’s Foreign Investment Agencyreported that the total newly committed foreign direct investment (FDI)to Vietnam reached 21.6 billion USD in 2013, up 54.5 percentyear-on-year. Around 80 percent of this figure was focused on themanufacturing sector, driving demand for industrial locations.
SamsungElectronics invested in a 2 billion USD factory in Yen Binh IZ in thenorthern province of Thai Nguyen and is currently expanding its 1billion USD factory in Yen Phong IZ in the neighbouring Bac Ninhprovince. Meanwhile, LG Electronics also invested in a 1.5 billion USDelectronics factory in Trang Due IZ in the northern port city ofHaiphong.
“When a foreign investor builds a factory in Vietnam,it’s best for them is to build it in an IZ. We’re upbeat about thedevelopment of IZs in the year to come, as FDI projects predicted tocome into the country are on the rise,” said Nguyen Thanh Phuong,General Director of South Dinh Vu IZ in Hai Phong.
CBRE Vietnamforecasted that the IZ real estate market would remain busy becauseVietnam had emerged as an attractive destination for foreign investors.
Withgood infrastructure, good logistics networks and proximity to China andinternational ports and airports, Hanoi and Hai Phong will remainattractive IZ destinations.
“With LG’s recent announcement, itis anticipated that a shortage of ready built factories in Hai Phongwill occur,” CBRE Market Review cited.
The last quarter of 2013saw more US investors seeking investment opportunities in Vietnam as theanticipated Trans-Pacific Partnership trade agreement is slated forsigning this year.
Vietnam is currently home to 185 IZs and export processing zones (EPZs), with 104 others in the pipeline.
Inthe south, Dong Nai has received more enquiries for both land and readybuilt factories due to existing and fourth coming infrastructureimprovements such as the Long Thanh - Dau Giay highway.
In thenorth, new investors have tended to move either to Hai Duong or Hung Yenprovinces, to take advantage of cheap labour or to IZs in Hai Phongwhere tax incentives are available.
“With the incoming factoryfrom LG Electronics, land leasing and factory leasing prices in this andthe surrounding area may increase in 2014,” CBRE predicted.
Severalregulations intended to improve the investment climate took effect fromJanuary 2014, and FDI figures are likely to remain positive, with afocus on business process outsourcing, IT and fast moving consumer goodssectors.-VNA
