HIGHLIGHTS OF INDUSTRIAL MARKET
Vietnam: Potential of Industrial Real Estate before the 4th FDI wave
Vietnam is facing the opportunity to welcome the fourth wave of FDI, focusing on high-tech sectors such as electronics, semiconductors, artificial intelligence and renewable energy. Bac Ninh is still a favorite destination for investors with a total registered investment capital of 2.58 billion, accounting for 17% of the country’s total. In second place is Ba Ria – Vung Tau with 1.54 billion USD, and Quang Ninh is in third place with 1.36 billion USD. Followed by Hanoi, Hai Phong, and HCMC.
Vietnam: Vietnam’s Industrial Real Estate Leads the Way in Green Certification
According to a survey conducted by the Ministry of Construction and the IFC, the majority of green projects are industrial projects, with 55% of green construction projects in Vietnam coming from the industrial sector. Data on LEED-certified projects in 2023 shows that more than 70% of certified projects are in the industrial building group, including factories and warehouses. Meanwhile, 38% of EDGE-certified projects last year were also in the industrial sector.
Vietnam: Technology paves the way for Industrial Parks to enter the Green and Smart era
Technology slices in smart factories and smart industrial parks have revealed a corner of the fourth industrial revolution that is changing everything. In which technologies such as Big Data, AI (artificial intelligence), IoT (Internet of Things), Edge Computing (edge computing) … are the core elements of digital in this 4.0 industrial revolution. More than 130 countries have committed to net zero emissions by 2050, including Vietnam.
Vietnam: Foreign enterprises increase investment in semiconductor industry
In fact, the wave of investment in this field has accelerated since last year when many investors from the US, Europe, Japan, Korea, etc. came to Vietnam and expressed interest in semiconductors. In the past few years, global foreign investment has tended to stagnate, but in just 2021 and 2022, the world has witnessed foreign investment in the semiconductor sector reaching 155 billion USD. This is the highest investment in this industry in the past 20 years.
Vietnam: Many advantages to attract investment in Industrial Real Estate
Vietnam has shifted its focus from low value-added industry to attracting high value-added manufacturing, thereby consolidating its position as an emerging market in the region. Vietnam is continuously demonstrating its competitiveness by shifting its orientation from an agricultural economy to focusing on exports, especially in the electronics and processing sectors. In addition, free trade agreements (FTAs) also play an important role in attracting FDI to Vietnam.
Vietnam: VIPFA signs cooperation agreements to promote greening of Industrial Parks
The Vietnam Industrial Park Finance Association (VIPFA) signed cooperation agreements with 8 strategic partners. The strategic partners are investment funds; domestic and foreign industrial park development units and enterprises operating in industrial parks. VIPFA will participate in consulting on policies and laws on investment, finance, tax, customs and issues related to industrial parks and economic zones in Vietnam for strategic partners.
Vietnam: Industrial land rental prices in the North are 20% lower than in the South
According to experts, the North is becoming the leading place in attracting investment in industrial real estate. However, the North has advantages such as the average industrial land price of about 138 USD/sqm, 20% lower than in the South. Specifically, in the South, to rent a plot of land in a strategic location in Binh Duong or Ho Chi Minh City, the land price can be up to 300 USD/sqm. Meanwhile, in the Northern market, the average price is about 180 USD/sqm for strategic (Bac Ninh).
Vietnam: Promoting Cooperation in developing the Vietnam-Taiwan (China) Cold Chain
Vietnam’s cold storage market is forecast to reach 295 million USD by 2025, with an annual growth rate of 12%. This growth rate reflects the shift in increasing consumer demand for fresh food and pharmaceuticals that are properly stored and preserved. While Vietnam attracted 5.5 billion USD of FDI capital into the logistics industry in 2021, Taiwan (China) has also invested more than 100 million USD in developing logistics technology in the past 5 years.
Vietnam: Multi-Use Warehouse Trends on the Rise
A notable trend is the emergence of multi-use projects. These facilities provide suitable space for both warehouse and factory uses, attracting a diverse range of tenants and accelerating occupancy rates. Overall, with supply continuing to expand, the market will continue to be competitive, posing challenges in leasing activities, with tenants maintaining their bargaining power with significant incentives offered in the form of direct discounts, longer rent-free periods, etc.
Vietnam: Periodic reports on Industrial Clusters every 6 months and annually
The Ministry of Industry and Trade has just issued Circular No. 14/2024/TT-BCT regulating the periodic reporting regime on industrial clusters (ICs), the national IC database, and some sample documents on IC management and development. The Circular takes effect from October 1, 2024… The time for closing 6-month (beginning of the year) reporting data is calculated from December 15 of the year before the reporting period to June 14 of the reporting period.
Ha Nam: Groundbreaking ceremony of Taseco Dong Van III Industrial Park
aseco Land Real Estate Investment JSC has just coordinated with the People’s Committee of Ha Nam province to organize the groundbreaking ceremony of the project to invest in construction and business of infrastructure of Dong Van III Supporting Industrial Park. The project is located in Duy Tien commune, Ha Nam province, with a scale of 223 ha, total estimated investment capital of 2,320.2 billion VND.
Soc Trang: Approval of the Dai Ngai Industrial Park Zoning Plan
The People’s Committee of Soc Trang province has just issued Decision No. 1680/QD-UBND approving the Dai Ngai Industrial Park Zoning Plan, Long Phu district, Soc Trang province, at a scale of 1/2,000. The project covers an area of 196.30 ha. The estimated labor force in the planning study area is about 10,240 -12,800 workers. This is a multi-industry industrial park, prioritizing the attraction of textile, footwear, machinery and equipment manufacturing industries,ect.
Hau Giang: Approval of the project to build a Digital Technology Park in Hau Giang
On August 9, the People’s Committee of Hau Giang Province signed and issued a Decision approving the project to build a Digital Technology Park in Hau Giang Province, located in Vi Tan Commune, Vi Thanh City, with a land use area of about 1,523 ha. The total investment of the project is 50 billion VND. The project implementation progress is from 2024 to 2027. The project’s goal is to promote innovative start-up activities in the fields of information technology, agriculture, ect.
Hai Duong: Approval of zoning plans for 3 Industrial Parks
On August 12, the People’s Council of Hai Duong province approved resolutions on the tasks of zoning plans for 1/2000 Hoang Dieu Industrial Park (Gia Loc district) with a scale of 250ha, Hung Dao Industrial Park (Tu Ky district) with a scale of 200ha and approved the zoning plan for Tan Truong Industrial Park (Cam Giang district) with an expansion of more than 112ha. All zones are multi-industry industrial parks aiming to attract the industrial production with high added value…
Dong Nai: Investing in the construction of a new Phuoc An Industrial Park
On August 16, Deputy Prime Minister signed Decision No. 862/QD-TTg approving the Local Adjustment of the Master Plan for the new urban area of Nhon Trach, Dong Nai province until 2035, with a vision to 2050 (on technical infrastructure and industrial parks). Accordingly, the land function in the port logistics service subdivision and Phuoc An port will be adjusted to industrial land; and a new Phuoc An industrial park will be built.
HIGHLIGHTS OF ECONOMIC & INDUSTRIAL PARKS
Nghe An: Approval of the Planning Project for Area B – Tho Loc Industrial Park
The Provincial People’s Council has just approved the draft Resolution approving the 1/2,000 scale Construction Zoning Plan for Area B – Tho Loc Industrial Park, in Dien Phu and Dien Loc communes, Dien Chau district, in the Southeast Nghe An Economic Zone. Accordingly, the scale of the planning study includes 215.5 ha, of which the planning area of Area B is 179.43 ha. The project is identified as a multi-industry, clean industrial park with high technology and high added value.
Long An: Approval of the task of planning the construction of High-Tech Industrial Park
The People’s Council of Long An province has unanimously approved the task of planning the construction zoning at a scale of 1/2,000 of the Binh Hoa Nam 1 Industrial Park in Binh Hoa Nam commune, Duc Hue district, Long An province with a scale of 322.30 ha. It is designed as a clean, multi-industry industrial park, mainly in the processing and manufacturing industry and industrial and service industries. The project is expected to attract about 15,000 – 23,000 workers and experts.
Quang Nam: Approval of Tam Thang Industrial Park Expansion Project
Quang Nam Provincial People’s Committee has just issued Decision No. 1992 approving the project of Investment in construction and infrastructure business of Tam Thang Industrial Park Expansion. The construction site is in Binh Nam commune, Thang Binh district, Quang Nam, within an area of 242.27 ha with a total investment capital of VND 895.5 billion. The project will be implemented within 48 months from the date of land handover by the State.
Thanh Hoa: There will be 6 more projects with investment capital of 16,000 billion VND
Thanh Hoa recently has 6 industrial park (IP) infrastructure projects that are attracting investors’ attention to propose projects and complete construction investment documents, including WHA Smart Technology IP (part of Phu Quy IP); WHA Smart Technology 2 IP – Thanh Hoa (part of Giang Quang Thinh IP); Western IP of Thanh Hoa city – phase 1; IP No. 19, Nghi Son Economic Zone; IP No. 17, Nghi Son IP; Vietnam – India high-tech pharmaceutical IP phase 1 (Nghi Son EZ).
Hanoi: Construction of Long Xuyen Industrial Cluster
On August 19, the People’s Committee of Phuc Tho District (Hanoi) coordinated with Thien An Investment Joint Stock Company to start the project to build technical infrastructure for Long Xuyen Industrial Cluster. The project covers an area of nearly 6 hectares with a total investment of about 150 billion VND. Once completed, the project will contribute to promoting the development of industry and handicrafts in Phuc Tho District in particular and Hanoi City in general.
HIGHLIGHTS OF INDUSTRIAL PROJECTS
Vietnam: Chinese tire group plans to increase investment capital to 1.7 billion USD
Sailun Group has invested in building a factory to produce all tire lines in Tay Ninh province, established a research and development center in HCM and established a joint venture with Cooper Tires in 2019, with a total investment capital of about 1.5 billion USD to date. Sailun Group’s leaders pledged to continue investing an additional 200 million USD in Vietnam in the coming time. Sailun will continue applying the most advanced technologies in their production.
Ha Nam: PepsiCo Foods to Build $90 Million Factory
On August 3, PepsiCo Foods Vietnam Co., Ltd. officially started construction of a modern food manufacturing plant in Ha Nam province. The new plant has a total area of 8 ha with an annual capacity of more than 20,000 tons of snacks, expected to become a key production center of PepsiCo Foods in Vietnam. Accordingly, the plant uses 100% renewable energy, including a roof installed with solar panels and a biomass system utilizing local agricultural waste.
Hai Phong: Granting investment certificates to Chinese enterprises
On August 7, Hai Phong City leaders granted investment registration certificates to 7 Chinese enterprises with a total investment capital of 190 million USD. In addition to granting investment registration certificates, 4 MoU were also signed between Chinese enterprises and the Hai Phong Economic Zone Management Board and enterprises operating industrial park infrastructure in Hai Phong. To date, Hai Phong City has 405 investment projects from China with a total capital of 6.14 billion USD.
Hue: Groundbreaking Ceremony of Kim Long Motor Hue Engine Production Factory
On August 23, Kim Long Motor Hue JSC and Yuchai JSC (China) signed a comprehensive strategic cooperation agreement on engine manufacturing and production in Vietnam. At the same time, the two companies also broke ground on the construction of Kim Long Hue Engine Manufacturing and Production Factory in Chan May – Lang Co Economic Zone (Thua Thien Hue). The factory has a total investment of 260 million USD, divided into 2 phases.
Nam Dinh: Aluminum Production Project Worth Nearly 100 Million USD Coming Soon
On August 29, the People’s Committee of Nam Dinh Province held a signing ceremony for a cooperation agreement to develop a project to produce high-grade aluminum alloy materials with a total estimated investment of nearly 100 million USD on an area of about 12.2 ha in My Thuan Industrial Park. This is a cooperation between Dai Phong Infrastructure Construction Joint Stock Company and Joint Wise Company under Kam Kiu Aluminum Group, Hong Kong (China).
Binh Dinh: Approval of investment in the Packaging Paper Factory Project
The Management Board of Binh Dinh Economic Zone has just approved the investment policy and approved the investor for the Packaging Paper Factory Project invested by Hoang Ha Binh Dinh Paper Joint Stock Company. The project is implemented in Nhon Hoa Industrial Park, Nhon Hoa Ward, An Nhon Town with an area of over 2.6 hectares; production scale of 30,000 tons of products/year. The project is expected to come into operation in June 2026.
Binh Dinh: Investing 250 billion to build a 120,000 ton/year wood pellet factory
The People’s Committee of Binh Dinh has just issued a decision approving the investment policy of the wood pellet factory project. Accordingly, the project will be implemented at Cau 16 Industrial Cluster, Tay Thuan Commune, Tay Son District with an area of nearly 32,000 sqm, and a total investment of 250 billion VND. It is expected that the construction will started in the Q4/2024; and completion and operation will be completed in the Q1/2026.
Vinh Phuc: Signetics plans to invest 100 million USD
According to information at a recent meeting between Signetics leaders and the Chairman of Vinh Phuc Provincial People’s Committee, Signetics – one of the major suppliers of Samsung and SK has planned to invest 100 million USD in Ba Thien I Industrial Park in Vinh Phuc province, with the goal of putting the project into operation next year. Signetics’ prominent processing products include Flip-Chip, MCM, BGA, FBGA… used in the production of memory chips, GPUs, TVs…
Bac Ninh: Johnson Group plans to build a $100 million sports equipment factory
A representative of Johnson Group (Taiwan – China) said that the group hopes to establish the world’s largest complete sports equipment manufacturing and assembly base in Bac Ninh. Since 2019, Johnson Group has invested in a project in Thuan Thanh II Industrial Park with a scale of 10 hectares, a total investment of 50 million USD, and a revenue of 60 million USD/year. Johnson Group is one of the most famous manufacturers of high-quality sports equipment in the world.
Thai Binh: Chinese group invests in ‘ceramic valley’ of 200 million USD
Hualien Ceramic Industry Group (China) plans to invest in a ceramic project in Thai Binh with a total investment of over 200 million USD. Once completed and put into operation, it will help create jobs for about 5,000 workers in the province.
Hualien Ceramic Industry Group is an enterprise operating in the field of design, research and development, production and trading of ceramic products.
HIGHLIGHTS OF LOGISTICS MARKET
Vietnam: Import and export in 7 months reached over 439 billion USD
Data from the General Statistics Office shows that in July 2024, the export and import turnover of goods is estimated at 69.72 billion USD, up 8.7% over the previous month and up 21.8% over the same period last year. In the first 7 months of 2024, the total export and import turnover of goods reached 439.88 billion USD, up 17.1% over the same period last year, of which exports increased by 15.7%; imports increased by 18.5%.
Nghe An: Over VND7,320 billion to build Cua Lo Deepwater Port
Nghe An Provincial Party Committee has approved the policy of adjusting the Cua Lo Deepwater Port construction and business project to 3 berths with a total investment of nearly VND7,325 billion. The province also agreed to let the International Maritime Investment and Development JSC (ITID) invest in building 3 berths; including 2 berths for ships up to 50,000 DWT and 1 berth for ships of 100,000 DWT.
Ho Chi Minh: Approved investment in the HCM – Moc Bai Expressway Project (Phase 1)
On August 2, the Deputy Prime Minister signed Decision No. 760/QD-TTg, approving the investment policy of the HCM – Moc Bai Expressway Project (Phase 1). The Project has a total length of 51 km; the starting point connects with Ring Road 3 -HCM in Cu Chi District; the end point intersects with National Highway 22 (Km53+850) in Ben Cau District, Tay Ninh. The preliminary total investment of the Project is 19,617 billion VND, invested by PPP format.
Hai Duong: Investing 1,400 billion to build a Logistics Center of nearly 35 hectares
Duc Duong Company Limited will be the investor of the project of the logistics service center, petroleum and goods port, petroleum warehouse, and commercial service area. It has a total investment of more than 1,400 billion VND, using about 34.6 ha of land in Minh Hoa commune (Kinh Mon).The investor commits that if the project is approved for investment, it will promptly complete construction and put the project into operation in the Q2/2027.
Dong Nai: Approval of Dau Giay – Tan Phu Expressway Phase 1
The Minister of Transport has just issued Decision No. 954/QD-BGTVT approving the investment project to build Dau Giay – Tan Phu Expressway Phase 1. The project has a length of 60.24 km with the starting point at Km 0 at the intersection of National Highway 1, belonging to HCMC – Long Thanh – Dau Giay Expressway, and the end point at Km 60+243.83 at the end point within the intersection with National Highway 20 connecting to the Tan Phu-Bao Loc Expressway project.
Tien Giang: Groundbreaking of An Huu – Cao Lanh Expressway Component 2
On August 12, in Tan Hung Commune, Cai Be District, Tien Giang Provincial People’s Committee held the Groundbreaking Ceremony of An Huu – Cao Lanh Expressway Component 2. The project has a total length of over 11 km; of which, the section through Dong Thap is 3.8 km and the section through Tien Giang is 7.63 km; with a total investment of VND 3,856 billion, with Tien Giang Provincial People’s Committee as the managing agency.
Binh Duong: Inauguration of the East-West Main Road Project
On August 14, Binh Duong Province inaugurated the East-West Main Road Project connecting Binh Duong with HCM. The project is 3 km long, connecting Di An City with HCMC to the new Eastern Bus Station and stations of the Ben Thanh – Suoi Tien metro line. The road has been widened from 12 m to 32 m with 6 lanes. The total investment is 730 billion VND. But there is still a 50 m long section connecting to Hanoi Highway on the Ho Chi Minh City side that is still stuck in site clearance.
Lang Son: Prime Minister approves Smart Border Gate pilot project
On August 17, the Prime Minister issued Decision No. 865/QD-TTg approving the pilot project to build a smart border gate at the Huu Nghi (Vietnam) – Huu Nghi Quan (China) international border gate pair. The project’s objective is to build a smart border gate at the dedicated freight transport road in the area of landmarks 1119-1120 and the dedicated freight transport road in the area of landmarks 1088/2-1089.
VN: Expanding Can Tho – Ca Mau, Ben Luc – Trung Luong Expressways to 6-12 Lanes
The Vietnam Road Administration has just submitted a proposal to expand the Phap Van – Phu Thu section from 8 lanes to 10 – 12 lanes; the Ben Luc – Trung Luong section from 6 lanes to 10 – 12 lanes; and the Can Tho – Ca Mau section from 4 lanes to 6 lanes. In addition, a number of expressways have their scope adjusted, including the Ninh Binh – Hai Phong Expressway, the Cam Lo–Lao Bao Expressway, the Quy Nhon – Pleiku Expressway, and the HCMC–Moc Bai Expressway.
Vietnam: Proposal to add 2 new expressways to the planning
Vietnam Road Administration has proposed to add 2 expressways to the planning, namely Ca Mau – Dat Mui and Quang Ngai – Kon Tum. Of which, the Ca Mau – Dat Mui expressway is about 90km long, with 4 lanes; the Quang Ngai – Kon Tum expressway is about 136km long, with 4 lanes. Both of these expressways will be invested before 2030. Thus, the planned expressway network will increase to 43 routes, with a total length of about 9,234 km…
Source: Catherine Huỳnh
