Update news industrial parks
There were positive developments of industrial parks in Vietnam in the first five months of the year, but experts still say the country should do more to attract big investors.
The two northern provinces of Bac Giang and Bac Ninh, Vietnam’s largest Covid-19 hotspots, have received 300,000 doses of vaccine for 300,000 workers in industrial parks. Vaccinations started on May 27.
Vietnam has witnessed a growth in the arrival of global high-tech brands like Pegatron, Universal Scientific Industrial, Foxconn.
Over $747.6 million were poured into export processing zones (EPZs) and industrial parks (IPs) in Ho Chi Minh City in 2020, representing a year-on-year increase of 15.79 percent.
With the current minimum wage of US$132-190 per month, Vietnam has been listed in the top three ASEAN countries having the lowest labor cost.
HCM City authorities plan to offer competitive land rents and other incentives at industrial parks (IPs) and export processing zones (EPZs), and earmark more lands for building infrastructure to attract investment.
HCM City has reached 12 of its 16 targets in its pollution reduction programme for the 2016-20 period, according to the city’s Department of Natural Resources and Environment.
Many industrial parks and export processing zones in HCM City lack sufficient infrastructure since authorities’ failure to pay compensation for lands has meant they have been unable to acquire and clear them.
Vietnam has some great advantages while competing with regional countries in attracting capital flows moving out of China after the COVID-19 pandemic, experts have said.
Foreign investors are planning to expand their operations in Vietnam this year, creating an opportunity for industrial property development despite the COVID-19 pandemic, according to experts.
Industrial park owners are forecasting a drop in 2020 profits, blaming the ongoing damage inflicted by the novel coronavirus outbreak.
Last year was another record year for industrial and logistics real estate in Vietnam when foreign direct investment (FDI) into manufacturing remained positive.
During the first nine months of 2019, industrial park companies achieved impressive business results, especially developers who own large-scale land banks for lease.
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).
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.
Phan Thanh Tien can now focus on his work at a garment company in HCM City’s Cu Chi District as his 4 ½-year-old son is being taken care of at an officially licensed public kindergarten in the industrial park