Investors seek industrial land near Hanoi, HCMC

By An Le
Wed, April 27, 2022 | 11:30 pm GMT+7

Land scarcity and surging real estate prices in Hanoi and Ho Chi Minh City have pushed investors to seek industrial land in satellite areas, according to Colliers Vietnam.

VSIP Bac Ninh Industrial Park in Bac Ninh province, northern Vietnam. Photo courtesy of VSIP Joint Venture Co.

VSIP Bac Ninh Industrial Park in Bac Ninh province, northern Vietnam. Photo courtesy of VSIP Joint Venture Co.

HCMC's industrial real estate market received no new supply in Q1/2022. However, it remained stable with the occupancy rate reaching 90% and average rent at $190 per square meter, according to a report by the real estate services company.

The report said that the city would have five new industrial parks providing 4,200 hectares this year, giving no specific timelines.

Though the demand for industrial land has constantly increased, investors have to move to neighboring provinces like Binh Duong, Dong Nai, and Long An due to limited supply.

These satellite provinces have risen strongly over the past five years with long-term potential in attracting major companies like Nam Long, Vingroup, and Novaland.

Deputy Prime Minister Le Van Thanh recently approved the 400-hectare Prodezi Industrial Park infrastructure project in Long An. Prodezi Long An JSC, the investor, plans to pour VND4,604 billion (over $200 million) into the project.

Dai Loc Long An JSC last week started construction of the 308-hectare Nam Thuan Industrial Park in Duc Hoa district of Long An, with a total investment of VND5,300 billion ($231 million).

VSIP Joint Venture Co. a partnership between Binh Duong-based Becamex IDC Corp. and a coalition of Singaporean companies, in March started work on the 1,000-hectare Vietnam - Singapore Industrial Park (VSIP) III, the third such a VSIP project in Binh Duong and the 11th in Vietnam.

Binh Duong authorities also plan to build the 1,000-hectare Cay Truong Industrial Park this year, expand Nam Tan Uyen Industrial Park and Rach Corn Industrial Park.

Binh Duong recently saw Capitaland’s $242 million acquisition of an 18.9 hectare site and Gamuda Land’s $54 million acquisition of a 5.6 hectare site. The deals are expected to attract more foreign experts and enterprises to come to the industrial province in future.

In the north, Hanoi remains the most promising market for investors to set up factories or warehouses, according to Colliers Vietnam.

Despite no new supply in the first quarter due to social distancing in Q4/2021, the capital city remained the leading industrial real estate market in the north, with a stable occupancy rate of 90% and average rent of $142 per square meter, the report noted.

Like the south, adjacent provinces like Bac Ninh, Hai Duong, and Hai Phong have also attracted investors seeking available industrial land.

Hai Phong authorities planned to build an additional 15 industrial parks with a total area of 6,200 hectares during the 2021-2025 period. Meanwhile, Hai Duong planned to construct six industrial parks this year with a total area of 1,097 hectares. Of this, 754 are set for leasing.

According to Colliers analysts, as international flights resume, the industrial real estate market in Greater Hanoi and Greater HCMC will become more vibrant, and land rents may increase by at least 10% on average by the end of the year.

Comments (0)
  • Read More
Vietnamese dong likely to depreciate 3% in 2025: VinaCapital

Vietnamese dong likely to depreciate 3% in 2025: VinaCapital

The Vietnamese dong is likely to depreciate 3% in 2025 on anticipation that the US Dollar/DXY Index will finish 2025 nearly unchanged, says Michael Kokalari, chief economist at Vietnam's leading fund manager VinaCapital.

Economy - Sat, December 21, 2024 | 11:23 am GMT+7

First luxury railway journey across Vietnam features Indochine architecture

First luxury railway journey across Vietnam features Indochine architecture

PYS Travel has launched the first luxury railway journey across Vietnam named Sjourney, marking a new milestone in the railway tourism sector.

Travel - Sat, December 21, 2024 | 10:09 am GMT+7

Vietnam among 40 most beautiful countries: US publication

Vietnam among 40 most beautiful countries: US publication

Vietnam has secured the 36th position in the ranking of the 40 most beautiful countries in 2024 in a testament to its undeniable charm and appeal, according to US News & World Report.

Travel - Sat, December 21, 2024 | 10:04 am GMT+7

Foxconn to invest $16 mln more in Vietnam’s Quang Ninh province

Foxconn to invest $16 mln more in Vietnam’s Quang Ninh province

Competition Team Technology (Vietnam) Company Limited, a subsidiary of Foxconn, will invest an extra $16 million in its “S- Vietnam” project in the northern coastal province of Quang Ninh.

Industries - Sat, December 21, 2024 | 9:53 am GMT+7

Vietnam’s small- and medium-sized businesses embrace digitization to weather global expansion risks: survey

Vietnam’s small- and medium-sized businesses embrace digitization to weather global expansion risks: survey

While global expansion remains a key priority for the country's small- and medium-sized businesses (SMBs), achieving this goal requires overcoming challenges by leveraging the right talent and advanced technologies, including AI, according to Payoneer’s findings.

Companies - Sat, December 21, 2024 | 7:56 am GMT+7

Vietnam tax authorities collect $169 mln from delinquent taxpayers through exit bans

Vietnam tax authorities collect $169 mln from delinquent taxpayers through exit bans

Vietnam's tax authorities have collected about VND4.3 trillion ($169 million) from 6,500 delinquent taxpayers through exit ban measures so far this year, nearly five times the amount reported in the middle of the year.

Finance - Fri, December 20, 2024 | 10:29 pm GMT+7

French, Chinese EV manufacturers to invest in Indonesia

French, Chinese EV manufacturers to invest in Indonesia

Three global electric vehicle (EV) manufacturers - France’s Citroen and China’s BYD and AION - have committed to establishing EV manufacturing plants in Indonesia, Minister of Industry Agus Gumiwang Kartasasmita has announced.

Southeast Asia - Fri, December 20, 2024 | 6:42 pm GMT+7

Thailand optimistic about export prospects for 2025

Thailand optimistic about export prospects for 2025

With an upbeat export growth projection of about 5% this year, Thailand's Ministry of Commerce and its private sector are optimistic for a further 2-3% growth in 2025, bringing total export value to about $305 billion.

Southeast Asia - Fri, December 20, 2024 | 6:36 pm GMT+7

Philippines imposes temporary import ban on live cattle from Japan

Philippines imposes temporary import ban on live cattle from Japan

The Philippines has imposed a temporary ban on the importation of live cattle and buffalo as well as their products from Japan due to the outbreak of lumpy skin disease (LSD), its Department of Agriculture said on Thursday.

Southeast Asia - Fri, December 20, 2024 | 5:53 pm GMT+7

Malaysia-China trade hits nearly $100 bln

Malaysia-China trade hits nearly $100 bln

Malaysia-China economic ties have continued to strengthen, with bilateral trade reaching nearly $98 billion between January and November, matching the 2023 total trade volume.

Southeast Asia - Fri, December 20, 2024 | 5:51 pm GMT+7

Indonesia to stop importing sugar in 2025

Indonesia to stop importing sugar in 2025

The Indonesian government expressed optimism that the plan to stop importing sugar and several other commodities in 2025 will be implemented due to increased domestic production.

Southeast Asia - Fri, December 20, 2024 | 5:50 pm GMT+7

Major defence industry corporations compete for market share in Vietnam

Major defence industry corporations compete for market share in Vietnam

Major western aerospace companies are competing to capture market share in Vietnam, seeing this as a potential market for military aircraft and helicopters, reported Canada’s aviation news website flightglobal.com.

Southeast Asia - Fri, December 20, 2024 | 5:36 pm GMT+7

Vingroup, Marubeni launches 3.7 MWh battery energy storage system in Vietnam

Vingroup, Marubeni launches 3.7 MWh battery energy storage system in Vietnam

Japan's Marubeni Corporation, through its wholly-owned subsidiary Marubeni Green Power Vietnam Co., Ltd, has begun operating a battery energy storage system (BESS) project in Vietnam.

Energy - Fri, December 20, 2024 | 5:19 pm GMT+7

Vietnam Post turns to online sales of agricultural products to stay competitive

Vietnam Post turns to online sales of agricultural products to stay competitive

State-run Vietnam Post Corporation (Vietnam Post) recently launched nongsan.buudien.vn, an e-commerce platform dedicated to agricultural products, with an aim to tap into the year-end market and the promising potential of this business area.

Companies - Fri, December 20, 2024 | 4:25 pm GMT+7

Hong Kong-based furniture firm Man Wah to invest $50 mln more in Vietnam

Hong Kong-based furniture firm Man Wah to invest $50 mln more in Vietnam

Hong Kong-based Man Wah, among the largest home furnishing producers in the world, will invest an additional $50 million in Vietnam’s southern province of Binh Duong.

Industries - Fri, December 20, 2024 | 4:02 pm GMT+7

Vietnam's property giant Vinhomes shakes hands with Nomura Real Estate

Vietnam's property giant Vinhomes shakes hands with Nomura Real Estate

Vietnam’s leading housing developer Vinhomes and Japan’s Nomura Real Estate Development Co., Ltd have signed an MoU on comprehensive strategic cooperation, aiming to leverage the strengths of both sides to bring international-standard products to the market.

Real Estate - Fri, December 20, 2024 | 2:42 pm GMT+7