Industrial properties in city neighborhoods thriving

Industrial real estate is believed to be the only segment which can continue to prosper in the current real estate market.

In late 2019, Tay Ninh province welcomed a ‘super-project’ on producing ACTR radial tires in Phuoc Dong IZ. With the total investment capital of $280 million, the factory can churn out 2.4 million products a year. It is one of the biggest foreign invested projects licensed in the province so far.

Industrial properties in city neighborhoods thriving



There have been big changes in the picture about FDI in Tay Ninh. Once unable to attract any project, the province had licensed 291 foreign invested projects as of 2019, with total registered capital of $6 billion and 517 Vietnamese invested projects.

In the first two months of 2020 alone, Tay Ninh was the second biggest FDI attractor with $488.3 million worth of capital registered, which accounted for 7.5 percent of total investment capital.

Binh Phuoc has also emerged as a locality catching the attention of investors. Becamex has decided to pour trillions of dong worth of investment into Becamex-Binh Phuoc IZ. Meanwhile, CP Group has invested $157.6 million to build the animal feed and chicken processing complex there.

Binh Phuoc has also emerged as a locality catching the attention of investors. Becamex has decided to pour trillions of dong worth of investment into Becamex-Binh Phuoc IZ. Meanwhile, CP Group has invested $157.6 million to build the animal feed and chicken processing complex there.

 


The strong FDI wave has brought great opportunities to industrial zone developers. As land plots in HCM City, Binh Duong, Dong Nai and Long An are declining, Tay Ninh and Binh Phuoc have become potential destinations.

Low land rent is the greatest advantage of second-class provinces. A survey by JLL Vietnam found that in the south, HCM City is still leading the market with the rent of $156.8 per square meter. The figures are $85.5 in Dong Nai, $73.8 in Binh Duong and $60.6 in Ba Ria – Vung Tau.

Meanwhile, the rents are much lower in Tay Ninh and Binh Phuoc, just $53 per square meter on average.

Besides, there is low site clearance costs.

Bao Viet Securities (BSC) reported that the cost is just VND600 million per hectare, or $2.58 per square meter in Tay Ninh and Binh Phuoc. Besides, the provinces can provide low-cost labor force, which is contrary to the labor shortage that HCM City, Binh Duong and Dong Nai are facing.

In the past, most investors hesitated to set up their factories in localities far from HCM City because of the fear of transport conditions. However, the challenge is believed to no longer exist as a series of transport infrastructure projects have been and will be implemented.

The government has turned the green light on the Binh Phuoc – Binh Duong – HCM City highway project, capitalized at VND11 trillion. Meanwhile, Tay Ninh is moving ahead with the HCM City-Moc Bai highway, worth VND10 trillion.

Kim Chi 

Vietnam's industrial real estate sector heats up

Vietnam's industrial real estate sector heats up

The development of the industrial real estate market will have a positive impact on other market segments such as houses and offices for rent.

Industrial real estate thrives on FDI increase

Industrial real estate thrives on FDI increase

Existing factors in the market, especially strong FDI inflow, all are supporting the prosperity of the industrial real estate market.

 
 

Other News

.
Nissan Vietnam ceases operation in response to COVID-19
Nissan Vietnam ceases operation in response to COVID-19
BUSINESSicon  03/04/2020 

Automaker Nissan Vietnam has declared a temporary shutdown as from April 5 amid the complex developments of the COVID-19 pandemic.

BUSINESS NEWS HEADLINES APRIL 3
BUSINESS NEWS HEADLINES APRIL 3
BUSINESSicon  03/04/2020 

Vietnamese confectionery firms get their act together

Room for Vietnamese farm produce exports to Singapore amid COVID-19
Room for Vietnamese farm produce exports to Singapore amid COVID-19
BUSINESSicon  03/04/2020 

Vietnamese enterprises shipped around 500 tonnes of goods, including coffee, instant noodles, sweet potato, cabbage, pineapple, watermelon, and dragon fruit, to Singapore in March, according to the Vietnamese Trade Office in Singapore.

VN wood industry facing losses due to COVID-19
VN wood industry facing losses due to COVID-19
BUSINESSicon  03/04/2020 

 The wood industry was facing a ‘disaster’ with many businesses left without orders from now until 2021 due to the COVID-19 pandemic, said the Vietnam Timber and Forest Product Association (VTFPA).

Vietnam’s manufacturing drops to record low in March due to pandemic
Vietnam’s manufacturing drops to record low in March due to pandemic
BUSINESSicon  03/04/2020 

The Vietnam Manufacturing Purchasing Managers' Index (PMI) fell sharply to 41.9 in March from 49.0 in February, a survey by IHS Markit and Nikkei released on April 1 showed.

Cambodian government offers financial support for tourism sector
Cambodian government offers financial support for tourism sector
BUSINESSicon  03/04/2020 

The Cambodian government recently announced a measure to assist workers employed in the tourism sector which is severely affected by the COVID-19 pandemic.

Many firms optimistic about business in Q2
Many firms optimistic about business in Q2
BUSINESSicon  03/04/2020 

Many enterprises in the manufacturing and processing industry are optimistic about the outlook for the second quarter of 2020, according to a survey conducted by the General Statistics Office (GSO).

Floundering service sector threatens mass unemployment
Floundering service sector threatens mass unemployment
BUSINESSicon  03/04/2020 

With restaurant and café chains struggling amid COVID-19, thousands of employees in the service sector could lose their jobs. 

Will coronavirus reverse globalisation?
Will coronavirus reverse globalisation?
BUSINESSicon  02/04/2020 

Could Covid-19 permanently change how the global economy works?

Coronavirus: Oil prices rise on hopes of a price war truce
Coronavirus: Oil prices rise on hopes of a price war truce
BUSINESSicon  02/04/2020 

US President Donald Trump said he expects Saudi Arabia and Russia to strike a deal in the next few days.

Government considers $2.6 billion support package for Vietnamese hit by COVID-19
Government considers $2.6 billion support package for Vietnamese hit by COVID-19
BUSINESSicon  02/04/2020 

Minister of Planning and Investment Nguyen Chi Dung submitted a relief package worth US$2.6 billion to help those most affected by the COVID-19 pandemic at the meeting of permanent Government members on April 1.

GDP growth of 3.82 percent in Q1 is a miracle: official
GDP growth of 3.82 percent in Q1 is a miracle: official
BUSINESSicon  02/04/2020 

Vietnam’s GDP growth rate of 3.82 percent in the first quarter of 2020, a record low since 2011, is still a miracle amidst a global economic recession, an official has said.

Honda Vietnam suspends production due to COVID-19
Honda Vietnam suspends production due to COVID-19
BUSINESSicon  02/04/2020 

Honda Vietnam (HVN) has become the fourth automaker in Vietnam to suspend production and assembly of cars and motorbikes over the concerns of the COVID-19 pandemic.

Ba Ria–Vung Tau seeks investors for 23 key projects
Ba Ria–Vung Tau seeks investors for 23 key projects
BUSINESSicon  02/04/2020 

Authorities in the southern province of Ba Ria-Vung Tau have been asked to speed up procedures so that investors can be sought for important projects.

VN central bank asks for cut in electronic fund transfer fees
VN central bank asks for cut in electronic fund transfer fees
BUSINESSicon  02/04/2020 

The State Bank of Vietnam (SBV) on March 31 issued a directive to reduce the fees for transactions via interbank electronic payment system by 50 percent for local banks.

Banks maintain normal operations during national social distancing
Banks maintain normal operations during national social distancing
BUSINESSicon  02/04/2020 

Banking services will remain available to meet the transaction demands of businesses and individuals, according to the State Bank of Vietnam (SBV).

Bank customers warned of fraud amid COVID-19 pandemic
Bank customers warned of fraud amid COVID-19 pandemic
BUSINESSicon  02/04/2020 

Banks have warned customers about fraud during the COVID-19 pandemic, advising them not to open suspicious emails or click on dubious links sent as email attachments related to the pandemic.

Finance Ministry asks insurers not to sell COVID-19-related products
Finance Ministry asks insurers not to sell COVID-19-related products
BUSINESSicon  02/04/2020 

The Ministry of Finance has asked insurers to stop introducing and selling insurance packages related to COVID-19.

Securities trading uninterrupted during COVID-19 fight: SSC
Securities trading uninterrupted during COVID-19 fight: SSC
BUSINESSicon  02/04/2020 

Trading on the Vietnamese securities market was essential and would not be disrupted under any circumstances during the fight against COVID-19, the State Securities Commission (SSC) said on March 31.

Restaurants, coffee chains in Vietnam switch to selling online delivery
Restaurants, coffee chains in Vietnam switch to selling online delivery
BUSINESSicon  02/04/2020 

After HCM City decided to temporarily close restaurants and catering services with the capacity of more than 30 customers, they began selling online and delivering food.

 
 
 
Leave your comment on an article

OR QUICK LOGIN