Government okays 5 major industrial park projects

The government has approved investment in five major industrial park projects as demand for industrial real estate surges.

Deputy Prime Minister Le Van Thanh's decisions gave the green light to four industrial park (IP) projects in the northern provinces of Bac Giang, Hai Phong, Ha Nam, and Hung Yen, and one in the southern province of Ben Tre, worth a total VND12,500 billion ($539 million).

Accordingly, the 85-hectare first phase of the expanded Hoa Phu Industrial Park (IP) in Hiep Hoa district, Bac Giang province will be invested by Hoa Phu Invest with investment capital of $47 million.

Bac Giang, home to a Samsung factory, is an emerging manufacturing hub in northern Vietnam.

In Tien Lang district, the port city of Hai Phong, the $198.3 million Tien Thanh IP project will be developed on an area of over 410 hectares. Tien Thanh Investment Industrial Park Zone JSC acts as the project’s investor.

The third project is the $23.4 million expanded Dong Van IP which spans 49.06 hectares in Duy Tien town, Ha Nam province. Plaschem Group JSC serves as the project’s investor.

Hoa Phat Hung Yen Industrial Park Infrastructure Development Ltd., a subsidiary of Hoa Phat Group, received government approval to implement the expanded Yen My II IP project in Hung Yen province. Capitalized at $115.7 million, the IP spans 216 hectares in Yen My district.

The deputy PM also approved an increase in the total investment for the Phu Thuan IP project in Binh Dai district, the Mekong Delta province of Ben Tre, from $91.7 million to $154.5 million. Of the additional capital, 96.1% comes from Ben Tre's budget.

The project is expected to be completed in 2025, with the Ben Tre Management Board for Construction of Civil and Industrial Projects being its investor.

Industrial real estate has become one of the most attractive investment fields in Vietnam amid a new wave of foreign direct investment and the country's rising role in the global supply chain. According to consultancy firms JLL and Colliers, industrial land rentals in southern Vietnam have reached a new record high as demand surges.

Ho Chi Minh City authorities are seeking government permission to have a 700-hectare industrial park named Pham Van Hai in Binh Chanh district added to the country's master industrial park development plan until 2025.

City Vice Chairman Vo Van Hoan recently sent a document to the Ministry of Planning and Investment, saying the proposal aims to cater to demand for large-scale plots of industrial land from foreign companies.

Heavyweights like Logos Group, TTI, Goldman Sachs, Einhell, and Quantum have reportedly expressed their interest in developing IPs in the city.