Industrial real estate expected to boom in 2019

Vietnam’s nascent industrial property market attractive to investors

Industrial property 2019: the ball’s in Vietnamese court

The event was co-organised by the Central Institute for Economic Management (CIEM), the Vietnam National Real Estate Association (VNREA) and Thuong gia (Entrepreneur) magazine.

Speaking at the event, former Construction Deputy Minister and VNREA Chairman Nguyen Tran Nam said industrial property is the most attractive segment in 2019, wooing industrial manufacturers in Southeast Asia.

He said investors should grasp opportunities in the field in the short, mid and long terms while the State should offer more incentives to develop industrial real estate in a way that matches its potential.

Deputy head of the Ministry of Planning and Investment’s Department of Economic Zones Management Tran Quoc Trung said as of the late 2018, the country was home to 326 industrial and processing zones with a combined area of more than 95,600ha, 251 of them put into operation with a total area of over 66,200ha. The rate of occupancy in industrial parks reached 73.9 percent.

CIEM Director Nguyen Dinh Cung affirmed that the attractiveness of domestic industrial property is more than the average in the region, which will be further propelled by low labour cost, reasonable land lease prices, and preferential corporate income tax.

However, he admitted that infrastructure remains segmented, industrial and economic zones’ contributions to the gross domestic product are below potential while the State policies are insufficient to develop the sector.

Vice Chairman of the Ha Nam provincial People’s Committee Truong Quoc Huy said apart from providing incentives, the province also holds regular dialogues with investors to promptly address their difficulties.

Huy said Ha Nam is now home to seven out of the eight industrial zones with suitable infrastructure and hundreds of firms doing good business. In recent years, Ha Nam has been among the top 10 localities nationwide in terms of foreign direct investment attraction.

It is also one of the first provinces that has been allowed by the Government to develop an industrial area in support of Japanese investors on a site of over 300ha in Dong Van III Industrial Park, he said.

Participants presented their opinions on industrial real estate policies and how to tap existing advantages to develop the field.

Domestic and foreign investors had a chance to access information regarding land zoning in localities and their incentives to attract investment.-VNA