Want to be in the loop?
subscribe to
our notification
Business News
INDUSTRIAL REAL ESTATE BOASTING FURTHER ROOM FOR GROWTH
Thua Thien-Hue People’s Committee and Gilimex Industrial Park (IP) JSC broke ground on the construction of Gilimex IP in the province’s Huong Thuy town on November 11.
The venture was approved in March 2021 and covers over 460 hectares, with $113 million in total investment and 20,000-30,000 projected employees.
The industrial real estate sector has also been attracting new supply sources. On November 12, investment was approved for developing infrastructure at Hai Long IP in the northern province of Thai Binh. Covering an area of 297ha, the project is funded by Bao Minh IP Infrastructure Investment JSC with total capital of VND2 trillion ($87 million).
Nguyen Manh Linh, deputy director of Dai Phong JSC – the developer of Dai Phong and Phu My Investment Zone (IZ) in the northern province of Nam Dinh – told VIR, “The number of delegations of Taiwanese and Chinese investors visiting our IP is increasing thanks to the Chinese government’s decision to ease some of its strict anti-pandemic rules.”
Dai Phong IP is fulfilled, and the final works at Phu My IZ are being completed to welcome tenants. “The demand for renting land plots in IPs is still large so the room for developing new parks is open. We are working with several Taiwanese investors who want to rent large plots.”
Elsewhere, Saigon-Bac Giang IP JSC received approval to expand the 90-ha Quang Chau IP, and many manufacturers registered to rent land plots with a fulfilment ratio of 90 per cent. Foxconn alone has registered to rent a 50-ha land plot for its expanded plant, with capital of $300 million.
Statistics from the Housing and Real Estate Market Management Agency under the Ministry of Construction showed that in the third quarter of 2022, many industrial real estate projects were started, inaugurated, or expanded, such as the Soc Son Clean IP, Dong Anh IP, and Phu Nghia IP.
Meanwhile, Son My I IP in the south-central province of Binh Thuan started construction in September and is one of the first smart and green IPs in the south-central coastal region.
According to the Ministry of Planning and Investment (MPI), in the first 10 months of this year, foreign inflows to real estate continued to surge, with the industry ranking second in the list of industries attracting foreign-invested capital. This hit more than $3.87 billion, against $2.12 billion in the same period last year. Notably, $1.43 billion was newly registered capital and $1 billion added capital.
Director of Haiphong Economic Zones Management Authority Le Trung Kien said, “The existing supply source of IPs in the city does not meet demand. Thus, the city wants to develop an additional 15 IPs by 2025. Currently, the city is concentrating on implementing procedures to establish six new IPs across 2,750ha.”
Northern Vietnam connects with the southern economic corridor of China, including some prominent regions such as Shanghai, Hong Kong, Shenzhen, Fujian, and Guangdong. This is the economic region chosen as the headquarters of giants in the manufacturing, biochemistry, commerce, and electronic technology industries. According to Cushman & Wakefield, this region accounted for more than 30 per cent of China’s total GDP in 2021, playing a key role in attracting investment and economic development.
Statistics published by the MPI’s Foreign Investment Agency showed that processing and manufacturing are taking the lead in foreign investment. In the first 10 months of this year, capital in this sector was estimated at $12.9 billion, accounting for 57.5 per cent of the investment inflow to the country.
Source: VIR
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.