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Industrial real estate - Golden opportunity for industrial zones having availabe leasing land

Due to covid-19 pandemic, the trend of relocation from China to diversify and reduce the risk of interrupting supply chain; Free Trade Agreements that Vietnam has signed and come into force such as CPTPP, EVFTA... creating opportunities for attracting investment into Vietnam’s industrial zones. However, will all industrial zones be able to yield benefits from these trends?

According to the analysis of many market research companies, it can be seen that these trends have a firm foundation. Despite the fact that Covid-19 began to surge again and the decline of real transactions, demands of leasing land and factories in Vietnam have continued to increase recently. Also, in experts’ opinion, although covid-19 pandemic has had large impact on several enterprises’ business and production of the whole economy, this is not a severe disease for the economy itself, and there is a high possibility for the economy to recover after this pandemic. This is considered to be a momentum for investors to join the market as soon as the pandemic is under control.

Phu My 2 industrial zone. Ảnh: IDICO

Subsequently, industrial land’s supply will continue to become imperative; therefore there is a compelling urge to develop more projects in order to respond to the needs of high value’s production investment. However, this is not necessarily an opportunity for every industrial zone in Vietnam. As the realities of developing industrial zone in Vietnam, it takes about 05 years to have avialble industrial land fund for lease. Meanwhile, opportunities might mainly focus in 2021-2022, then last until 2025, after the control of the pandemic. So these opportunities perhaps belong to industrial zones of which land fund is available.

According to Ministry of Planning and Investment, till June 2020, there are 336 industrial zones with the area of  97,800 hectares. Among these, 261 industrial zones are in operation and 75 ones are either in clearance or construction progress. Occupancy rate has reached 76% in industrial zones being in operation nationwide.

Among these, IDICO owns 05 industrial zones with the available land fund of 640 hectares for lease in Phu My II industrial zone, Phu My II Expansion industrial zone in Ba Ria - Vung Tau province; Cau Nghin industrial zone in Thai Binh province; Que Vo II industrial zone in Bac Ninh province. Our industrial zones prove the strengths as the following:

- Phu My II industrial zone and Phu My II extended industrial zone in Ba Ria - Vung Tau province take advantages of being located close to Cai Mep - Thi Vai deep water port, domestic port systems, supply of fossil gas, well-built transport infrastructure...

- Huu Thanh industrial zone in Long An province located nearby Ho Chi Minh city is benefited from transport infrastructures - urban extension from Ho Chi Minh; easily exposed to the largest cosuming market in Vietnam; having access to abundant work force with reasonable cost, being at advantage of recruiting.

In addition to the preparation for land fund in industrial zones, IDICO will continue our search and research to invest and develop industrial zones nationwide, aiming for the addition of 03 more zones with the area of 1,000 hectares in the northern provinces by 2025; diversifying our products such as factories, built warehouses to satisfy various investors’ demands...