Illustrative photo (Source: VNA)Hanoi (VNS/VNA) — Vietnam’s industrial zones property located nearthe sea is attracting great attention to investors as they maintain highoccupancy rates and rental prices, heard attendants at a recent Hanoi conference.
According to CBRE, by the third quarter of 2020, the total land for theindustrial development of five main industrial cities and provinces in thenorth including Hanoi, Bac Ninh, Hung Yen, Hai Dương, and Hai Phong accountedfor 13,800ha in which 9,600ha of leasable industrial land. The averageoccupancy rate of the industrial park remained at 79 percent.
Industrial zones (IZs) in Hanoi, Hai Duong, and Bac Ninh have average occupancyrates of about 90 percent. For the southern market, the total industrial landarea is double that of the northern region, reaching about 38,000ha, of which24,000ha of leasable industrial land including HCM City, Binh Duong, Long An, DongNai, 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 bothregions was scarce.
Vietnam’s coastal regions are starting to receive as much investment as demandfrom both domestic firms expanding production and multinational corporations.
Consequently, the coastal provinces have been taking advantage of the availablepotential to develop the industries. Compared to other provinces in thenorthern region, Hai Phong and Quang Ninh have more supply allocated forindustrial development.
Hai Phong is one of the biggest industrial hubs with significant projects suchas 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 launchof big industrial parks.
Quang Ninh recently emerges as an industrial coastal province. The provinceis 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 theprocessing and manufacturing industries. Secondary investors will have thehighest corporate tax incentives in economic zones and - receive short-termvocational training costs for employees in the first 2 years from the date ofissuance of investment certificate,” said Vice Chairman of QuangNinh People's Committee Bui Van Khang.
Le Trong Hieu, Director of Advisory and Transaction Services, Industrial andOffice at CBRE said the COVID-19 pandemic and trade tensions have disruptedglobal supply chains, Vietnam is one of the attractive destinations forinvestors of companies with production lines in China.
“However, this trend is being interrupted by the US Presidential election, theBiden administration is expected to have drastic changes in economic policy,such as reducing tensions with China and re-joining the CPTPP. Accordingto discussions with a number of companies interested in moving to Vietnam,investors are waiting to determine US policy under the new presidency to takeappropriate steps,” he said./.
VNA
