Industrial real estate: Many positive factors support the market

While China still maintains a zero Covid policy, the early opening of the border has created favorable conditions for businesses to come and work in Vietnam. This also promotes the wave of international businesses moving to many Southeast Asian countries, especially Vietnam.

According to the growth momentum of Vietnam's economy in 2022, the industrial real estate market is facing many development opportunities.
industrial real estate  many positive factors support the market
Phuoc Dong Industrial Park and Port - Long An

According to a report from the General Statistics Office, in the first nine months of 2022, the gross domestic product (GDP) increased by 8.83% over the same period last year, in the third quarter of 2022, it increased by 13.6%. On average in 9 months of 2022, the consumer price index (CPI) increased by 2.73%; core inflation increased by 1.88%. With a well-developed macroeconomic background, the Service Department Real Estate Industry of Savills Vietnam  believes that this is an important factor determining the attractiveness of the domestic industry for investment capital. foreign investment.

In addition, a series of factors that positively affect the results of industrial activities in Vietnam are also pointed out. First of all, the border opening policy, applied early, has created favorable conditions for businesses to come and work in Vietnam, while neighboring China still maintains a zero Covid policy. This is the reason why international businesses move to many Southeast Asian countries, especially Vietnam.

Not only benefiting from that wave, our country's potential also lies in free trade agreements, typically the EVFTA Agreement helps Vietnam better attract investors from Europe. And another factor contributing to creating a safe investment environment also comes from the stability of the VND/USD exchange rate compared to the exchange rate in some countries in the region such as Indonesia, Thailand, India and Malaysia.

In parallel with the above factors, at present, the Vietnamese Government is issuing policies to stimulate tourism demand, in order to promote business activities, rentals and complete investment procedures. Moreover, foreign investors also benefit from the policy of reducing corporate income tax to 0% in the first 4 years of operation, and reducing it by 50% in the next 5 years. At the same time, the Government continues to help businesses attract workers thanks to a number of Decrees to support workers to own social housing in industrial parks, effectively taking advantage of the inherent advantages of an abundant labor force. .

Thus, with the recovery of the economy after the pandemic, along with the effective support policies of the Government, experts expect industrial real estate to be a strongly developed segment in the coming time. However, experts also warned localities to carefully calculate the new granting of industrial park projects, to avoid falling into the risk of a crisis of excess as happened.

Especially, the new area should be planned in more detail, allocating area for logistics, commerce, service, data centers; improving the process of implementing investment promotion procedures, thereby helping industrial park investors to develop new projects easily, reducing related administrative procedures...

According to statistics of the Ministry of Planning and Investment, by the end of September 2021, there are 563 industrial parks nationwide in the planning on development of industrial parks in Vietnam, with a total natural land area of about approx. 210.9 thousand ha, mainly concentrated in key economic regions. The system of industrial parks in Vietnam is currently the destination of thousands of businesses from all over the world.

Making comments, Director of Savills Hanoi Matthew Powell said, despite the challenge from the decline in global trade, Vietnam's industry still possesses a favorable position to attract foreign investment flows. The proof is that industrial real estate areas still achieve high operating capacity and many potential new projects are implemented.

In the Industrial Insider report published by this unit in September, the supply of industrial real estate in two big cities Hanoi and Ho Chi Minh City. HCM was almost completely filled up. With advantages in infrastructure and traffic, industrial land in these two areas is more competitive, invisibly pushing rents higher. Prices in Hanoi reached nearly USD 140/m2, the highest in the North. Similarly, the price in Ho Chi Minh City exceeded the threshold of USD 200/m2, leading the Southern region. Meanwhile, neighboring provinces still have vacant projects at soft prices, promising alternative choices of many investors.

Considering the Northern key economic zone alone, by the second quarter of 2022, the supply of industrial land has changed. If in 2021, Bac Ninh takes the lead in terms of total area, then by now, Hai Phong has risen to first place. However, Bac Ninh still owns many ready-built factory projects nearly double that of Hai Phong. In addition, when the supply in Hanoi is no longer available, investors may consider shifting to neighboring provinces such as Hung Yen or Hai Duong.

In the southern economic region, the picture of industrial real estate in 2022 is similar to the same period last year. Binh Duong is the province with the largest industrial land area with more than 7,000 hectares and is almost completely filled. Ba Ria - Vung Tau, Long An had new projects entering the market in the last quarter. But in general, some provinces and cities are still in short supply.

In the face of the industrial wave entering Vietnam, the Government also set out development orientations and supplemented the supply of real estate across the country, notably the approval of 9 new industrial parks that will be put into operation in the next phase. the period of 2023 – 2025 with a total area

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  1. Ngày đăng: 04-10-2022
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