Industrial park real estate sees bright future ahead
From the mere 335ha of land used for industrial parks in 1986, the total area has since expanded to some 80,000ha, reflecting the strong development of industrial real estate in Vietnam.
Industrial real estate has witnessed strong development in the past time.
The strong investment inflow in production is also a factor contributing to the development of industrial real estate.
Greg Ohan, Vice Director of BW Industrial said that the Vietnamese economy, and the real estate market in particular, is becoming an alluring option for investors thanks to good economic growth and stable macroeconomics.
In that context, the industrial and logistics real estate market has drawn much attention from a range of investors, especially foreign-invested firms.
Experts attributed the industrial park boom in Vietnam to the formation of the export-oriented economy and specific planning of the parks. Vietnam has also joined various free trade agreements of late and economic growth has been high in recent years.
All these factors have contributed to luring a sea of foreign investors to Vietnam. Notably, when the Republic of Korea’s Samsung Group announced that its investment in Vietnam had surpassed 17 billion USD, Vietnam had earned the trust of investors around the world.
Vietnam has focused intently on its exports and encouraged enterprises to get involved in the field. This has shown through the mushrooming of industrial parks and key economic zones in the northern, central, and southern regions.
At the same time, the country’s engagement in 18 free trade agreements also added to the allure of Vietnam.
As of June 2018, Ho Chi Minh City’s total land for industrial parks was 4,206ha with an occupancy ratio of 77 percent; while in Dong Nai, the area is 9,813ha with an 85 percent occupancy rate; in Binh Duong, 10,931ha and 88 percent; and 1,305ha and 85 percent in Binh Phuoc.
Troy Griffiths, Deputy Managing Director of Savills Vietnam, said that the surge in foreign direct investment and the transformation in value chains have opened up a bright future for industrial park real estate in Vietnam. –VNA