return icon

Economic zone draws investment from the manufacturing sector

Industrial property in the Northern Key Economic Zone (NKEZ) saw strong development in the third quarter of this year, according to Jones Lang LaSalle firm (JLL Viet Nam).





Up to the third quarter of this year, the total leasable industrial land area stood 9,371ha in the NKEZ. — Photo



In the first nine months of this year, the occupancy rate recorded in all existing industrial parks (IPs) across the five most dynamic cities and provinces in the NKEZ, including Ha Noi, Hai Phong, Bac Ninh, Hung Yen and Hai Duong, averaged 69 per cent, an increase of 200 basis points compared to the previous data cycle in the first quarter of this year. The top rates were in Ha Noi and Hung Yen.

The NKEZ stands out as having suitable features for enterprises to set up operations, Nguyen Hong Van, JLL Viet Nam’s Director of Markets, said at a press conference held in Ha Noi on October 11.

Up to the third quarter of this year, the total leasable industrial land area stood at 9,371ha, of which the largest supply was in Hai Phong, followed by Bac Ninh, according to JLL Viet Nam.

Bac Ninh and Hai Phong, the two leading industrial markets still have sufficient vacant land areas to capitalise on rising demand.

Further, new supply from subsequent phases of existing industrial parks and newly developed ones in strategic locations have also offered more options, making these two provinces the most desirable areas in north Viet Nam, she said.

The average industrial land price in the third quarter hit US$95 per sq.m per lease term, an increase of 6.7 per cent year on year (y-o-y), Van said.

Aside from Ha Noi as the economic centre with the highest price, Bac Ninh and Hai Phong still post leading prices thanks to their strong industrial foundation with well-known tenants, strategic location and established infrastructure.

Hai Duong and Hung Yen still kept their prices at reasonable levels. Average monthly rents for factory ranged from $4-5 per sq.m per month. This rent remained flat compared to the first quarter.

The strong development in the manufacturing sector across provinces has also brought with it the great potential for the establishment of other real estate sectors. This has been proven by strong investment pouring into the real estate market in the northern provinces as witnessed recently.

With an increasing proportion of FDI pouring into the north over the past decade, Hai Phong, Bac Ninh, Hung Yen and Quang Ninh are also fast becoming focal points for investment apart from Ha Noi, according to JLL Viet Nam.

The BCI Asia statistic shows that, after Ha Noi, Hai Phong, Bac Ninh, Quang Ninh and Hung Yen are the top provinces in terms of the number of real estate developments. Apart from Quang Ninh, well-known for its Ha Long Bay and Van Don Special economic zone, the other three provinces have consistently led the north regarding industrial developments.

Bac Ninh and Hai Phong markets are strongly driven by residential projects being developed to capitalise on the growing housing demand from an increasing number of migrants and expats working in the provinces.

Unlike Bac Ninh and Hai Phong where most developments are concentrated in the city centre, most projects in Hung Yen cluster along its boundary with Ha Noi, to benefit from the existing demand in this big city. Home to Ha Long Bay, Quang Ninh has been on the radar of many well-known developers, focusing on vacation and tourism-related properties.

About 615 ha is planned to be launched during the next 12-month period. Steady price growth for industrial land in the North of Viet Nam is expected through this year end due to strong investor appetite. New investors, largely from Asian countries such as Japan, South Korea and China, will remain keen on Viet Nam’s industrial property. – VNS

HCM City needs to upgrade industrial zones to attract FDI: experts

HCM City needs to upgrade industrial zones to attract FDI: experts

To attract more investment, especially from overseas, HCM City needs to renovate and reform its export processing zones (EPZs) and industrial parks (IPs), Tran Quang Truong, general director of Tan Binh Industry Park said.  

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.


Facebook to register, declare and pay foreign contractor tax in Vietnam

Meta, the parent company of Facebook, on the occasion of the signing of a memorandum of understanding with the National Innovation Center (NIC), made the tax payment commitment.

Prime Minister’s ‘3-in-1’ business trip to the US

The business trip to the US of Prime Minister Pham Minh Chinh has brought important bilateral and multilateral results, according to Deputy Minister of Foreign Affairs Ha Kim Ngoc.

Corporate bond issuance drops sharply after arrest of Tan Hoang Minh chair

After the cancelation of nine corporate bond issuances of three companies related to Tan Hoang Minh, the volume of private offerings fell sharply by 33 percent to VND30 trillion in April.

Why the stock market sell-off when VN’s economy is strong?

Vietnam’s benchmark VN-Index sold off 11 per cent last week and was down 21 per cent in the year to date at the end of last week after being nearly flat until March end.

Two Vietnamese beauties among Top 50 of Miss Grand Slam 2021

Miss Grand Slam, Nguyen Thuc Thuy Tien, Miss Grand International, Nguyen Huynh Kim Duyen, Top 16 finish in Miss Universe

Vietnamese banks expected to get better credit ratings

Ratings of Vietnamese banks are expected to be continually improved thanks to Vietnam’s positive sovereign credit rating.

Vingroup completes issuing international bonds worth US$525 million

Vingroup Joint Stock Company (Vingroup) has completed its bond issuance on the international market with a total value of US$525 million, according to details given by the Hanoi Stock Exchange (HNX).

Deputy Finance Minister Nguyen Duc Chi takes charge of State Securities Commission

Minister of Finance Ho Duc Phoc had assigned Deputy Finance Minister Nguyen Duc Chi to directly take the charge of the State Securities Commission (SSC) from May 19.

Hanoi approves more than 1 billion USD for Ring Road No. 4 project

The Hanoi People's Council for the term 2021 - 2026 on May 20 agreed to spend 23.5 trillion VND (over 1 billion USD) from the city budget for the Ring Road No. 4 project.

Gov't may recall unused funds for public investment projects

Undisbursed funds for public investment projects could be recalled if local governments failed to implement the projects for an extended period of time,


CPTPP helps leverage Vietnam-Australia investment cooperation

FDI quality in need of fresh policy boost

Despite good performance in foreign investment attraction over the past year, the number of high-tech projects from developed countries investing in Vietnam is modest as compared to the incentives set forth.


Singapore parliament speaker wraps up visit to Vietnam

HCM City to launch Saigon River cruise

Ho Chi Minh City Department of Tourism is planning to launch a three-hour cruise tour along the Saigon River that is expected to be among key tourism products in the area this year.

Online gambling results in huge losses for many players

Online gambling is increasing, with many websites allowing players to place bets. Such gambling has led to real life tragedies.