Why are so many giants like Vingroup, Hoa Phat, and FDI enterprises racing to pour money into industrial real estate?
In recent years, in addition to housing products, urban areas, and tourism real estate, industrial real estate is also a “land” that is being watched by many large enterprises.
Typical Vingroup. After its success in residential, resort and retail real estate, Vingroup is encroaching on the industrial real estate business. This group is operating a 335-hectare industrial park in Hai Phong that is being operated, and at the same time, it has been approved the Planning Project for the construction of the central industrial zone, lot CN4, CN5 Vung Ang economic zone. over 1,230ha in Ha Tinh.
In 2021, Hoa Phat also alarmed the return to the real estate market by increasing the charter capital of Hoa Phat Real Estate Development Joint Stock Company to VND 6,000 billion for the company. Hoa Phat will focus on urban real estate and industrial real estate.
Currently, Hoa Phat is investing and exploiting technical infrastructure of 3 industrial zones, including: Pho Noi A Industrial Park (area of 596.44 ha) and Yen My II Industrial Park (phase 1 is 97.5 ha) in Hung Yen; Hoa Mac Industrial Park (area 131 ha) in Ha Nam. In which, Pho Noi A Industrial Park is carrying out investment procedures to expand by 92.5 hectares to the East, Yen My II Industrial Park will also be expanded in phase 2 by more than 200 hectares. Currently, industrial zones are being expanded with infrastructure to conduct land exploitation and lease, ready to welcome more domestic and foreign investors to lease land in the near future.
Vingroup’s industrial park in Hai Phong
Industrial real estate is also an area that receives great attention from FDI. Mr. Matthew Powell – Director of Savills Hanoi commented: “Compared to neighboring countries in the region, Vietnam is in a rather favorable position. Firstly, real estate prices are still relatively affordable when compared with other countries such as Malaysia, Thailand, China, or India. Although prices are on the upswing, we see many new projects being added to the futures supply. This will be a factor affecting the cost of land.
For manufacturing enterprises, the problem lies in the workforce, including quality of workmanship, working environment and social welfare. With many job opportunities and development, labor prices in Vietnam are at a relatively low level in the region. Moreover, because the legal framework is relatively simple, businesses also feel comfortable investing in and working in Vietnam.”.
Savills expert said that the reason industrial real estate in Vietnam attracts FDI lies in the fact that industrial land in our country has a relatively reasonable price, there are many reputable real estate developers along with the government. relevant legal books. In addition, other factors such as population, working population, labor costs, convenient transportation network and accessibility to international ports and airports, in order to serve export import finished products and products.
Mr. Matthew Powell – Director of Savills Hanoi
“In addition to these favorable conditions, the right policy planning from the central to local levels also makes Vietnam attractive. As a result, many new companies are entering the market. Due to tax incentives in key economic areas, businesses are trying to expand and diversify markets to not be dependent on China, in which, Vietnam emerges with stability. in terms of politics, investment opportunities are wide open, meeting the needs of businesses related to legal factors and support from local authorities Although administrative procedures still have certain limitations, In general, there are many factors that “pull” investors to the Vietnamese market, instead of other places like China, India or Thailand.”Mr. Matthew explained.
The industrial real estate market is currently seeing many data center and logistics projects with high-quality investment, contributing to Vietnam’s reputation in the international arena. Besides, the decision to open the route on March 15 will make it easier for foreign-invested enterprises to access industrial park projects in Vietnam. This will create a big step for the growth momentum of this segment in 2022.
By Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
