Industrial Land Is “Hot” With Trade Agreements

The total leased area in the first half of 2016 reached 28,500 ha, up 5% compared to the second half of 2015. Occupancy increased by 70% due to FDI inflows following Vietnam’s conclusion of the TPP Agreement, EVFTA.

On October 4, Savills Vietnam released a report on the overview of the industrial real estate market in the first half of 2016. Accordingly, the country has six new industrial zones, bringing the total number of industrial parks up to 218 with a total area of 59,700 hectares.

The total leasable area of the first half of 2016 reached 28,500 ha, up 5% from the second half of 2015. The supply increased, but occupancy increased by 70% due to FDI inflows. At present, 16 other industrial parks are in the planning stage, with an additional 18,600 ha of land to be leased.

The industrial park of Dat Cuoc, Binh Duong province is expanding in the second phase with more than 200 ha

According to Savills Vietnam, the cause of the industrial estate is “hot” because of the new trade agreements, which our country has participated. FDI inflows have surged after the negotiation of the TPP and the Vietnam-EU Free Trade Agreement (EVFTA).

“In the first half of 2016, Vietnam received 1,145 new projects with a total registered capital of US $ 7.5 billion, up 95% from 2015. In particular, the manufacturing sector received the greatest interest with 71% of FDI registered, “the report said.

In the south, Long An province has the fastest pace of growth with 16 industrial zones in operation, providing about 3,000 hectares of leased land. In the first half of 2016, Long An received $ 350 million of registered FDI, the highest in the 13 provinces of the Mekong Delta.

Located close to the international ports of Ho Chi Minh City, Binh Duong and Dong Nai hold the position as the industrial center of the South. Each province attracts nearly $ 1 billion for manufacturing.

The country has six new industrial zones, bringing the total number of industrial zones to 218 with the total area of 59,700 hectares.

In the north, Hai Phong is a pioneer in the development of industrial zones. Nomura and Southern Cau Kien are typical industrial parks with a mental capacity of 90% -100%. Hai Phong’s business environment has also improved significantly. In the first half of 2016, Hai Phong took the lead in attracting FDI capital of $1.8 billion.

Trang Due Industrial Zone in Le Loi Commune, An Duong District is attracting large investors thanks to its complete infrastructure. The industrial park is the destination of major investment projects such as $ 1.5 billion of LG, $ 425 million projects of SL Electronics.

Meanwhile, industrial zones in Hanoi are less attractive than in the neighboring areas due to high rents and expensive labor costs. Hanoi focuses more on attracting high-tech projects.

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