Industrial real estate has witnessed strong development in the past time. (Photo: VNA)Hanoi (VNA) – From the mere 335ha of land used for industrial parks in 1986, thetotal area has since expanded to some 80,000ha, reflecting the strong developmentof industrial real estate in Vietnam.
The strong investmentinflow in production is also a factor contributing to the development ofindustrial real estate.
Greg Ohan, ViceDirector of BW Industrial said that the Vietnamese economy, and the real estatemarket in particular, is becoming an alluring option for investors thanks togood economic growth and stable macroeconomics.
In that context, theindustrial and logistics real estate market has drawn much attention from arange of investors, especially foreign-invested firms.
Experts attributed theindustrial park boom in Vietnam to the formation of the export-oriented economyand specific planning of the parks. Vietnam has also joined various free tradeagreements of late and economic growth has been high in recent years.
All these factors havecontributed to luring a sea of foreign investors to Vietnam. Notably, when theRepublic of Korea’s Samsung Group announced that its investment in Vietnam hadsurpassed 17 billion USD, Vietnam had earned the trust of investors around theworld.
Vietnam has focused intentlyon its exports and encouraged enterprises to get involved in the field. Thishas shown through the mushrooming of industrial parks and key economic zones inthe northern, central, and southern regions.
At the same time, the country’sengagement in 18 free trade agreements also added to the allure of Vietnam.
As of June 2018, HoChi Minh City’s total land for industrial parks was 4,206ha with an occupancy ratioof 77 percent; while in Dong Nai, the area is 9,813ha with an 85 percentoccupancy rate; in Binh Duong, 10,931ha and 88 percent; and 1,305ha and 85percent in Binh Phuoc.
Troy Griffiths, DeputyManaging Director of Savills Vietnam, said that the surge in foreign directinvestment and the transformation in value chains have opened up a brightfuture for industrial park real estate in Vietnam. –VNA
VNA
