Southeast Asian countries have advantages in attracting international manufacturers thanks to low costs, increased domestic consumption, and improved infrastructure. 

The markets that most manufacturers are targeting are Vietnam and Indonesia. While the advantages of Indonesia lie in currency stabilization and changes in economic policies, the advantages of Vietnam are political stability and the young labor force. The labor cost is relatively low compared with regional countries and is just equal to one-third of China.

There are 260 operational industrial zones (IZs) and 75 IZs under planning. The total industrial land area in the country has exceeded 100,000 hectares by 2022, according to a report of Cushman & Wakefield. 

The northern region comprises 25 cities/provinces. The total industrial land area in five major localities, including Hanoi, Hai Phong, Bac Ninh, Vinh Phuc and Hung Yen, is 10,000 hectares.

The industrial land market in the north was established later than the south, but industrial provinces there attract hi-tech industries. The occupancy rate in IZs is 80 percent. The industrial land rent is $109 per sq m. Hanoi has the highest rent in the north - $139.9 per sq m.

The central region comprises 14 cities/provinces. The industrial market there has slower growth than the north and the south.

The total industrial land supply of five key localities in the central region, including Da Nang, Quang Nam, Quang Ngai and Binh Dinh, is 7,500 hectares and the occupancy rate of 67 percent. 

The industrial land rent in central provinces is very competitive, just $34 per sq meters.

The southern region comprises of 17 cities/provinces, including HCM City and neighboring localities, is the region where economic activities are the most bustling. The industrial land supply in five key localities (HCM City, Binh Duong, Dong Nai, Long An and Ba Ria – Vung Tau is 25,000 hectares. The average land rent is $135 per sq m and the occupancy rate is 89 percent.

Far ahead of other cities/provinces, HCM City is leading in industrial land rent, $198 per sq m, twice as much as Binh Duong and Ba Ria – Vung Tau, 5.8 times higher than the central region and 1.8 times than the north.

According to Ma Xuan Tuan, Director of HOREC, after the pandemic, many investors want to invest in HCM City in particular and the whole country in general.

The potentials of IZ development in HCM City are still great and developing ecological IZs is a growing tendency. 

Tran Chung