26/06/2021
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INDUSTRIAL REAL ESTATE - OPPORTUNITY OF IPs WHICH HAVE AVAILABLE LAND FUND FOR LEASE

According to the Ministry of Planning and Investment, as of May 2021, Vietnam has 394 industrial zones established. Among them, there are 286 industrial zones in operation, these IPs have occupancy rate of 71.8%. Particularly in the first 6 months of 2021, 25 new industrial zones were established with an area of ​​about 6,500ha. This number is extremely impressive when in the first 6 months of 2020, Vietnam only established 6 new industrial parks with an area of ​​​​nearly 1,700ha.

The increase in the supply of industrial land is urgent to catch a new trend of investment when the Covid-19 pandemic has promoted the trend of shifting production out of China in order to diversify and limit supply chain disruptions; Free trade agreements that Vietnam has signed and taken effect such as CPTPP, EVFTA, UKFTA, RCEP...

However, practice shows that, to develop an industrial park in Vietnam from the beginning to having clean land for rent, it takes 3-5 years at the fastest time. Meanwhile, opportunities to attract investment will likely focus mainly on the years 2021-2023, possibly lasting until 2025, after the Covid-19 epidemic is under control. Thus, perhaps this opportunity is only for industrial zones with available land for lease.

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IDICO Industrial Park with complete infrastructure ready for lease. Photo: IDICO

Currently, IDICO has 05 industrial parks with a land fund ready for lease of about 700ha in Phu My 2 and Phu My 2 expansion industrial parks in Ba Ria - Vung Tau province; Huu Thanh Industrial Park, Long An Province; Cau Ngan Industrial Park, Thai Binh Province; Que Vo 2 Industrial Park, Bac Ninh Province. IDICO's industrial parks have certain advantages such as:

- Phu My 2 and Phu My 2 industrial zones expand Ba Ria - Vung Tau province with the advantage of being located next to the Cai Mep - Thi Vai deep-water port system, having an intenal port system, having a natural gas supply, The transportation infrastructure system is complete, convenient for the development of projects of warehousing, logistics, heavy industry production, mechanical engineering, etc.

- Huu Thanh Industrial Park, Long An Province with the advantage of being adjacent to the Ho Chi Minh city. it will benefit from the expansion of urban-transport infrastructure projects from Ho Chi Minh city; Easy access to the largest and most dynamic consumer market in the country, abundant and low-cost labor resources; favorable for the development of consumer goods projects, logistics real estate for e-commerce, cold storage...

- Cau Ngan Industrial Park, Thai Binh province is located near a densely populated area with a tradition of agricultural activities, abundant labor resources, low cost, favorable for the development of labor-intensive projects such as leather shoes, textile, garment…

- Que Vo 2 Industrial Park, Bac Ninh province is close to the center of electronics industry with large corporations such as Samsung, LG, etc., which is convenient for the development of high-tech projects, supporting industries for the electronics industry...

In addition to the available land fund in the above industrial parks, IDICO is continuing to search, research, invest and develop industrial parks in Vietnam with the goal that by 2025 there will be 03-04 new Ips with over 1,000ha; develop diversified products to meet the needs of many different investors, including ready-built factories and warehouses for rent in Huu Thanh Industrial Park, Duc Hoa district, Long An province...