Industrial real estate is constantly exciting

Oct 11, 2021

Although the third quarter of 2021 is quieter than the second quarter, investors' interest in industrial real estate is still very large. The southern market continued to record positive developments.

Accelerating supply expansion

Preparing a large enough land bank for a new growth cycle and welcoming the investment wave is a move that many localities and industrial park investors are making. In addition to Binh Duong and Dong Nai considered as the industrial capital of the South, Long An is now emerging as a destination when many investors have chosen this locality to establish distribution centers and logistics projects.

Most recently, the People's Committee of Long An province has announced to invite investors to submit documents and procedures to invest in a 50-hectare logistics center project in Ben Luc district. The objective of this project is to serve industrial development in the Southern Key Economic Zone.

Long An has now planned 6 logistics centers in different areas in the area. In which, there are 3 centers in Ben Luc district, located in Thanh Phu, Thanh Loi and Luong Hoa communes, with a total area of ​​about 110 hectares. The logistics centers are planned including a system of warehouses and bonded warehouses, meeting the requirements of production, domestic goods circulation and import and export of Long An as well as the Ho Chi Minh City area.

Previously, this locality proposed to develop a 32,000 ha super economic zone - one of the largest economic zones in the South. Along with the rise of e-commerce, the industrial real estate market here will be more vibrant.

In addition to Long An, industrial parks in Ba Ria - Vung Tau province are also bright spots to attract investment. A recent report of JLL Vietnam Company noted that many transactions were completed in Ba Ria - Vung Tau, despite the fourth Covid-19 outbreak. Land lease agreements mainly come from heavy industry manufacturers requiring large land bank.

In particular, Phu My town and Chau Duc district are two localities that can take advantage of being near Cai Mep port to become the key industrial park of Ba Ria - Vung Tau, when accounting for about 70% of the industrial park area. of the province.

In the planning of industrial parks with orientation to 2030, vision to 2050 of Chau Duc district, Cu Be hi-tech urban-industrial park, with an area of ​​3,000 hectares, is the largest-scale project. The project implementation period is from 2021 to 2025, with a vision to 2030. In addition, there is an urban-industrial park in Xa Bang commune, with an expected area of ​​1,200 ha; Urban - industrial area in Binh Ba commune with an area of ​​800 ha; expand Da Bac Industrial Park in phase II and III, with a total area of ​​about 700 ha.

A recent report of the Company Securities VNDIRECT said that a number of listed industrial park real estate companies are accelerating land fund expansion. In particular, Becamex with a land bank of more than 6,000 hectares is the largest listed industrial park real estate company in terms of land bank in the South, 2.2 times more than the largest company in the North, Viglacera with about 2,800 hectares.

In terms of potential leasable area in the next 3 years, Becamex consolidates its leading position with Cay Truong Industrial Park (700 ha) and Lai Hung Industrial Park (1,500 ha), followed by Phuoc Hoa Rubber Company with 2 industrial zones: Tan Binh II (1,055 ha) and Tan Lap I (200 ha).

Experts of VNDIRECT said that the industrial zone land area in the South is expected to increase by 5,000 hectares in 2021 - 2022 to meet demand.

Attracting enterprise high value production

Mr. Ha Trong Binh, General Director of Nam Tan Uyen Industrial Park Joint Stock Company (a member unit of Vietnam Rubber Industry Group), said that the company's plan in 2021 is to promote construction investment. infrastructure to promote land subleasing when the Nam Tan Uyen project expands to phase II with nearly 346 hectares (phase I with a total area of ​​650 hectares has been put into operation and is completely filled by 246 projects). into legal proceedings.

"Our orientation is to attract projects in the industry with a high proportion of knowledge, high technology content and large investment scale," said Mr. Binh.

In fact, in the past, Vietnam often focused on attracting businesses that produce low-value items such as textiles or furniture. However, with the new orientation of the Government, the market is focusing more on attracting high-value manufacturing enterprises or new types of industrial real estate.

In particular, free trade agreements can be seen as a long-term solution for Vietnam, supporting the transfer of knowledge and technology, thereby promoting the transition from manufacturing to low-cost industries. low-value and local, to higher-value industries.

John Campbell, Head of Industrial Real Estate at Savills Vietnam, said that the transition to attract high-value manufacturing will bring more opportunities and a more positive future for the real estate market. industry. In fact, when the cost of renting real estate increases, the number of businesses in manufacturing industries with low profit margins will decrease.

“The Government has approved the proposal of national skills development planning as part of the recommendation of the Strategy to attract FDI for the period 2020-2030, which is also one of the key factors to help strengthen investor confidence. invest and promote the development of the industrial real estate market”, said Mr. John Campbell.

Source: Dau tu newspaper

(Translated by Google)