Strong infrastructure increases the attraction of industrial real estate to foreign investors

Four infrastructure thrusts

The whole country recognized the urgency of seaport – air – road – railway projects. Because the development of infrastructure projects is considered to be the backbone of the post-Covid-19 economic recovery and development strategy in Vietnam. In the new economic stimulus package worth 347,000 billion VND, the capital to implement the group of infrastructure development solutions amounted to 113,850 billion VND. The government is setting a target of having 3,000 km of expressways nationwide by the end of 2025 (from 1,163 km at present).

Notably, in 2022, if approved by the National Assembly, the great North – South expressway project phase 2 will start construction, officially connecting more than 2,000 km of the North – South highway running across the country. The transport corridor on this axis plays a very important role, connecting Hanoi and the economic center of Ho Chi Minh City, passing through 32 provinces and cities, affecting 62% of the population; contributing 65.7% of gross domestic product…

In the South, road projects have become an important driving force for the development of the Mekong Delta. Projects being invested by the Ministry of Transport, including expressways: Can Tho – Ca Mau route, My An – Cao Lanh route, An Huu – Cao Lanh route, Chau Doc – Can Tho – Soc Trang route; bridge projects such as Rach Mieu 2 bridge, Dai Ngai bridge, projects to upgrade national highways 53, 62 and 91B…

The wave of infrastructure investment continues to be the driving force for the growth of industrial real estate. Mr. Lance Li, General Director of Industrial Development Joint Stock Company (BW), said that the company is promoting many industrial real estate projects to take advantage of the opportunity many large infrastructure projects are forming across the country.

“Transport infrastructure is one of the decisive factors for the success of an industrial park project. We expect 2022 to be an exciting year for the industrial and logistics real estate market. Delivery time is a strategic factor for major e-commerce platforms as well as express delivery companies. To be able to operate efficiently, a good warehouse location and developed infrastructure are vital,” said Mr. Lance Li.

Regarding aviation, also in 2022, the Ministry of Transport will continue to promote key investment projects in the aviation sector such as Long Thanh airport, expansion of Noi Bai airport; Construction started according to the approved plan of airports including Dien Bien, Sa Pa, Quang Tri, Phan Thiet, Con Dao… For railways, the Ministry set up a research plan to propose the addition of new routes ( Ho Chi Minh City – Can Tho – Ca Mau), the route to the border of Cambodia, Laos; maintain existing infrastructure, ensure safety and coordinate with ministries; soon submit the North – South high-speed railway project.

The seaport is also busy with large projects to promote its role as a hub for goods trade in the context of the country’s deep integration.

The Ministry of Transport has just issued Decision No. 552 on publicizing the list of ports belonging to Vietnam’s seaports. Accordingly, 10 new ports have been added to the list of ports belonging to Vietnam’s seaports, bringing the total number of ports nationwide to 296. The newly added ports include Nosco port in Quang Ninh seaport. ; Long Son general port belongs to Nghi Son seaport; Hai Ha Petroleum Port – Quang Tri (Quang Tri); Pacific Petro international petroleum port (Tien Giang); Tan Cang Giao Long port (Ben Tre); port of Duyen Hai 2 Thermal Power Plant (Tra Vinh). In addition, two ports of Vung Tau seaport are also added this time, including Cai Mep Gemadept – Terminal Link and Cai Mep General Port.

Strong push for industrial real estate

Many large US and European companies are looking for opportunities to enter the Vietnamese market at the step of in-depth research and analysis to choose the right location. In particular, Vietnam is the second largest country in Asia (after Singapore) in terms of number and coverage of world trade agreements. The total GDP of countries that have signed trade agreements with Vietnam accounts for 53% of global GDP. According to the General Statistics Office, in the first quarter of 2022, realized foreign direct investment capital in Vietnam was estimated at 4.42 billion USD, up 7.8% over the same period last year, this is the highest level of Vietnam. first quarter of the past five years. The market recorded billion-dollar projects like LEGO Manufaturing Vietnam (Denmark) in Binh Duong.

In anticipation of synchronous traffic projects, many industrial park investors have begun to conduct investment promotion activities in many localities across the country. Notably, during the recent visit of the President to Singapore, more than 10 billion USD of investment commitments were signed and licensed, including many projects related to industrial real estate such as VSIP III; T&T vs YCH… The first Logistic City in Vietnam appeared in the market (Capital Land’s first project in Bac Giang has a scale of billions of dollars and is about to have a second project in the Southern Key Economic Zone). Many Vietnamese enterprises have jumped into the field of industrial real estate (T&T Group has signed a memorandum of understanding with YCH Group (Singapore) to study investment opportunities in a Logistics project with a scale of over 70 hectares in Can Giuoc district, the province of Vietnam. Long An…

Industrial park land supply in Vietnam is expected to increase by 44,760ha in 2022-2025 to meet the increasingly strong demand for industrial park land in Vietnam, which will accelerate the expansion of new supply in the Delta. Red River and North Central Coast and Central Coast. The year 2022 marks the boom of the industrial real estate market in the North with high occupancy rate and attracting more businesses. This is considered an inevitable growth, because this is the area where the provinces and cities attracting the top FDI in the country such as Bac Giang, Quang Ninh, Bac Ninh…

Doan Phong