HIGHLIGHTS OF INDUSTRIAL MARKET
Vietnam: The transformation of Vietnam’s FDI structure
The shift in Vietnam’s FDI structure to higher value-added industries such as electronics, components, solar products and automobiles is a driving force for the North, with this region being a source of revenue. attracts the most industries. The majority of land lease contracts in the North are large land leases from Chinese and Taiwanese manufacturers in projects producing electronic components and solar energy. The South receives investment in food, beverages, rubber, plastic, consumer goods, construction materials, textiles and apparel; with renting ready-built factories or smaller rental areas.
Vietnam: Enterprises racing to make Industrial Real Estate
Over time, industrial real estate has demonstrated its potential through stable development and is forecast to continue to grow strongly. Many large investors in urban and housing construction such as DIC Corp, Phat Dat, Ha Do, Khang Dien… have quickly entered the race to develop this segment. Typically: DIC Holdings, has cooperated with Van Thuong IP Infrastructure Development Co. to construct a 400-ha project infrastructure in Ba Ria-Vung Tau. Similarly, Khang Dien Housing Investment and Trading JSC also heated up the industrial real estate race with the Le Minh Xuan IP in HCM…
Vietnam: Plan to lease industrial land of “big guys” in 2024
Most industrial park real estate businesses continue to set business targets for growth in rental land funds this year. Typical: Kinh Bac estimates the area for IP land lease in 2024 to be about 150 ha. IDICO estimates to lease 145 ha of industrial land this year, including 105 ha at the parent company and 40 ha at subsidiaries. Becamex IDC will focus on attracting large corporations to the expanded Bau Bang IP, enough to operate business until the end of 2024. Viglacera has handed over more than 50 ha of industrial land, Implemented about 46% of the year’s plan.
Dong Nai: Will relocate manufacturing enterprises to Industrial Zones and Clusters
Dong Nai People’s Committee requires the district-level relocation plan to be submitted for approval no later than December 2024; Develop a provincial-level relocation plan in 2025. Accordingly, from now until 2030, consider and propose relocation of industrial production projects that have not yet completed legal documents for industrial production activities at active location. After 2030, production projects located outside IPs and ICs will be relocated that have fully completed legal documents for production and business activities at industrial production locations but located in residential areas.
Vietnam: In the wave of Asian Data Center investment
According to experts, Vietnam’s digital economy is forecast to grow 20% by 2025, nearly double the growth of GDP with a thriving digital ecosystem and booming e-commerce market. With a rapidly growing population and high internet user rate, Vietnam has many advantages. Currently, Vietnam has the lowest average land price in the region at 168 USD/sqm, creating better investment opportunities. Additionally, Vietnam, India and mainland China have lower construction costs than other Asian countries.
HIGHLIGHTS OF ECONOMIC & INDUSTRIAL PARKS
Tien Giang: Investing in infrastructure construction of Tan Phuoc 1 Industrial Park
Deputy Prime Minister has just signed Decision No. 471/QD-TTg on investment policy for the investment project to build and operate infrastructure of Tan Phuoc 1 industrial park. The project has an investment capital of 5,936.5 billion VND, scale of 470 ha. Project implementation location is at Tan Lap 1 commune, Tan Phuoc district, Tien Giang province. Operational term of the project: 50 years from the date the project is approved for investment policy and accepts investors. Project implementation progress: No more than 60 months from the date the land is handed over by the State.
Long An: Investment in construction and infrastructure business of Phuc Long IP
Deputy Prime Minister has just signed a decision approving the investment policy of the infrastructure investment and construction project of the expanded Phuc Long Industrial Park. Accordingly, It has a land use scale of nearly 329 ha, with a total investment capital of more than 5,642 billion VND; invested by Phuc Long Investment and Construction Company. Project implementation locations are in Long Hiep commune, Ben Luc district and Long Dinh and Phuoc Van communes, Can Duoc district. The project’s operation period is from the date of approval until December 29, 2059.
Bac Giang: Approve the planning of Song Mai – Nghia Trung Industrial Park
Bac Giang People’s Committee has just decided to approve the construction zoning plan of Song Mai – Nghia Trung IP, scale 1/2000. Accordingly, the planning boundary belongs to Nghia Trung commune, Viet Yen town and Song Mai commune, Da Mai ward, Bac Giang. The research area for industrial park planning is more than 204 ha. The number of employees in the planning area is about 17,500 people. In terms of nature, the project is a multi-industry integrated industrial park, mainly processing, manufacturing, production and assembly industries; has high technical properties, environmentally friendly industry.
Hung Yen: Investment in construction and infrastructure business of Tho Hoang IP
Deputy Prime Minister Decision No. 503/QD-TTg dated June 12, 2024 approving the investment policy of the Tho Hoang Industrial Park infrastructure investment and construction project. An Thi Infrastructure Investment and Development Joint Stock Company is the investor.
The project is implemented in Van Du commune, Xuan Truc commune, Quang Lang commune and An Thi town, An Thi district, Hung Yen province with a total investment capital of 3,095 billion VND.
Ba Ria – Vung Tau: Phat Dat is studying to build an Industrial Park of 1,247 hectares
Ba Ria – Vung Tau People’s Committee has just issued a document approving investment research for the Industrial Park project in Cu Be commune, Chau Duc district proposed by the joint venture Phat Dat and Phat Dat Industrial Park Investment and Development Joint Stock Company.
The project has a scale of 1,247 ha. The Provincial People’s Committee also requires Phat Dat joint venture to commit to bear all costs and risks if the project is not approved according to current legal regulations.
Can Tho: Approving the zoning plan for construction of Vinh Thanh IP (Phase 2)
On June 10, Can Tho People’s Committee has Proposal No. 114/TTr-UBND submitted to the City People’s Council to approve the 1/2000 scale construction zoning project of Vinh Thanh Industrial Park (Phase 2). Scope of planning in Vinh Trinh commune and Vinh Binh commune, Vinh Thanh district. The planned area is about 559.86 ha, with an estimated workforce of about 25,000 – 32,000 people. Regarding the type of production, it is expected that Vinh Thanh Industrial Park (Phase 2) will arrange a variety of industries with types of logistics such as seaports, inland ports, warehouses and yards.
Lang Son: Commencement of VSIP Lang Son Industrial Park
On June 14, Vietnam Singapore Urban and Industrial Park Development JSC held a groundbreaking ceremony for the VSIP Lang Son Industrial Park project in Ho Son and Hoa Thang communes, Huu Lung district. The project has a scale of 599.76 ha, total investment capital is more than 6,361 billion VND. Phase 1 has a scale of about 200 ha, phase 2 is about 250 ha and phase 3 is about 149.76 ha. According to the plan, by the Q3/ 2025, phase 1 of the project will be completed and put into operation; Phase 2 will be completed in September 2026; Phase 3 will be completed in September 2027.
Thanh Hoa: There will soon be an additional industrial park of nearly 350 hectares
Thanh Hoa Provincial People’s Committee has just issued Decision No. 2526/QD-UBND approving the 1/2000 scale construction zoning project of Giang Quang Thinh Industrial Park. Accordingly, the planning scope includes a part of the administrative boundaries of Thieu Giang, Thieu Quang, Thieu Thinh and Thieu Hop communes, Thieu Hoa district. The planning area is about 348.88 ha. This is a multi-industry industrial park, with priority given to high-tech industry; manufacturing, processing, mechanical, and automobile industries; pharmaceutical industry; food industry… Labor scale is about 30,000 people.
Ha Tinh: Commencement of Bac Thach Ha Industrial Park
On June 25, Ha Tinh People’s Committee coordinated with VSIP Group to hold a groundbreaking ceremony for the Bac Thach Ha IP project. The project land use scale is 190.41 ha, located in Thach Lien and Viet Tien communes of Thach Ha district, with a total investment of more than 1,555 billion VND. It is expected to be a “magnet” to attract investors operating in the fields of light industry and high-tech industry such as electricity and electronics, semiconductors, precision mechanics, garments, and, energy, electric vehicle batteries, metals, auto parts, logistics services, factories for rent…
Thanh Hoa: There will soon be another Industrial Park in the West of Thanh Hoa city
Recently, the People’s Council of Thanh Hoa province issued a Resolution approving the 1/2000 scale construction zoning project of the Western Industrial Park of Thanh Hoa city. Accordingly, the scope of planning is within the administrative boundaries of Dong Hoa, Dong Yen, Dong Van, Dong Phu communes (Dong Son district) and Dong Tien and Dong Thang communes (Trieu Son district). The planning area is about 645.2 ha. This is a multi-industry industrial park, applying environmentally friendly high technology, aiming for industry 4.0. The scale of labor in project is about 30,000 – 40,000 people.
HIGHLIGHTS OF INDUSTRIAL PROJECTS
Vietnam: Create Capital Vietnam invests in 2 solar cell factories
Create Capital Vietnam JSC is expected to implement two solar panel factory projects in Yen Bai and Da Nang, with a total scale of more than 1,700 billion VND. Specifically, the company will continue to implement the Create Capital Vietnam Solar Battery Factory project in Minh Quan IP, Yen Bai. This project has a total investment of 600 billion VND; It is expected to go into operation from the Q2/ 2025. In addition, the company will invest in the CRC Solar solar panel factory project in Da Nang Hi-Tech Park, with a total expected investment of 1,174 billion VND; Expected to go into production from the Q4/2025.
Binh Dinh: Inauguration of Quy Nhon Clean Water Plant (phase 1)
Saigon Environmental Technology and Construction JSC has just held the inauguration of the Quy Nhon Clean Water Plant Project (phase 1). The project is invested in the form of public-private partnership (PPP), planned on an area of more than 3.3 ha, with a capacity of 60,000 m3/day and night for both investment phases. In which, phase 1, the factory has a capacity of 30,000 m3/day and night, with a total investment of nearly 400 billion VND, officially operating from May 2024 and is fully automated with a control system. monitoring control and data collection (scada).
Quang Nam: Unanimous investment in An An Hoa 2 Factory project for rent
The Standing Committee of the Quang Nam Provincial Party Committee has agreed to issue an investment registration certificate for the An An Hoa 2 Factory Park for Rent project in Tam Hiep Logistics IP. It is invested by Indusvalley Chu Lai JSC, built on an area of 20,000 sqm. The project goal is to build a factory for rent; Warehousing and storage of goods. The total investment capital is more than 62 billion VND. Project implementation progress is expected to be completed by the first quarter of 2027 and put the project into operation.
Hung Yen: Inauguration of Vaksindo Veterinary Vaccine Factory
Vaksindo Vietnam Veterinary Company Limited (Vaksindo Vietnam) owned by Vaksindo Satwa Nusantara (Indonesia) officially inaugurated a modern veterinary vaccine factory at Yen My II Industrial Park, Yen My district, Hung Yen province. The project started construction in April 2022 on an area of more than 20,000 sqm, designed with two floors with plans to expand in the future. Once operational, the Vaksindo Vietnam factory will operate five production lines on an area of 9,000 sqm, focusing on cell vaccines, egg vaccines and bacterial vaccines.
Thai Binh: Korean corporation spends 100 million USD to invest in Soju Distillery Factory
Thai Binh People’s Committee said that Korea’s largest beverage group Hitejinro has chosen Lien Ha Thai IP in Thai Binh province as the location to invest in the first Soju wine factory abroad after 100 years of development. It is expected to start construction in the Q1/2025, striving to be completed and put into operation in the Q2/2026. It is expected to have an investment capital of 100 million USD on an area of 8.4 ha. HiteJinro said the reason for choosing VN as an overseas production base is because of its geographical location, cost, logistics accessibility and abundant human resources.
Nam Dinh: Awarded investment certificate for packaging paper production project
On June 12, the People’s Committee of Nam Dinh province held a ceremony to award the investment registration certificate for the project of a high-tech packaging paper factory from recycled scrap paper and pulp to GĐT Paper JSC. It is implemented in the expanded Bao Minh Industrial Park, on an area of 7.7 ha with a total registered investment capital of 2,560 billion VND. It is expected that the project will start construction in 2024 and officially go into production in the Q3/2026. The project is estimated to have an average revenue of 4,200 billion VND/year, creating about 180 jobs for local workers.
Binh Dinh: Another hundred billion animal feed Factory comes into operation
FAGO Animal Feed Co., Ltd. has just held the Inauguration Ceremony of FAGO Animal Feed Factory in the Central Region and officially put it into operation. The factory was built on an area of nearly 3.5 ha in Nhon Hoi EZ with a total investment of VND 380 billion; has a capacity of 45 tons/hour, estimated to reach 200,000 to 260,000 tons of products/year; creating jobs for about 150 employees. The factory’s revenue is estimated at 1,000 billion VND. The factory went into operation to meet the increasing demand for high quality animal feed locally and in the Central and Central Highlands regions.
Tuyen Quang: Tata Daewoo Group plans to set up an Automobile Assembly Factory
During a recent working session with leaders of Tuyen Quang province, Chairman of KGM Tata Daewoo (Korea) expressed his desire to invest for the purpose of cooperating in the production of automobiles, and at the same time developing the High-tech agriculture here. The group needs about 10 ha of land to build an automobile assembly plant and 30 ha to carry out a high-tech agricultural project. In addition, the group wants to invest in the field of human resource training, vocational training for Vietnamese workers in Korea and recruitment to work for the group in Vietnam.
Bac Ninh: Foxconn invested nearly 400 million USD to build another factory
Bac Ninh has approved and issued an investment registration certificate for the FCPV Foxconn Bac Ninh project in Nam Son – Hap Linh Industrial Park, Tien Du district, Bac Ninh province. The project is invested with the goal of producing electronic components, specializing in manufacturing, assembling, and processing printed circuit boards (PCB) with a total capacity of 2,793,000 products/year, equivalent to 2,989 tons. /year. The total land area for project implementation is 142,693.3 m² with total project investment capital of 9,456.75 billion VND, equivalent to 383.33 million USD.
Binh Dinh: Investment in wood and furniture processing factory worth 823 billion VND
Binh Dinh People’s Committee has just approved the investment policy simultaneously with the investor approval of the Project of Bio-pellet manufacturing and wood interior materials processing factory invested by Nhon Tan Company; with a total investment capital of the project of more than 823 billion VND. It is implemented at Van Canh town iIC (phase 3), Van Canh district. The land area expected to be used is more than 20 ha. Phase 1 will go into production in the Q4/2025; Phase 2 will complete the project and go into operation in the Q4/2026.
HIGHLIGHTS OF LOGISTICS MARKET
Vietnam: Officially opens bilateral border gate pair Hoanh Mo – Dong Trung
On June 25, Quang Ninh province (Vietnam) coordinated with the Guangxi Zhuang Autonomous Region (China) to organize a ceremony to announce the official opening of the bilateral border gate pair Hoanh Mo (Vietnam)-Dong Trung ( China), including the Bac Phong Sinh (Vietnam)-Ly Hoa (China) customs clearance route. This announcement ceremony took place in parallel at the bilateral border gate pair Hoanh Mo-Dong Trung and Bac Phong Sinh-Ly Hoa customs clearance gate. After Announcement Ceremony, many export and import shipments were cleared through customs by both sides.
Thai Nguyen: Started construction HCM road through Thai Nguyen and Tuyen Quang
On June 7, the Ministry of Transport held a ceremony to launch the construction of the HCM Road construction project at Cho Chu-Trung Son intersection, passing through Thai Nguyen and Tuyen Quang provinces. It has a total length of about 28.98 km; starting point at Cho Chu (end point of Cho Moi-Cho Chu section), Dinh Hoa district, Thai Nguyen province; The end point is at Trung Son junction (intersection with National Highway 2C) Yen Son district, Tuyen Quang province. It has a total investment of about 1,665 billion VND, and is expected to be completed in 2025.
Vietnam: Will build North-South High-speed Railway in 2026 – 2027
On June 25, Quang Ninh province (Vietnam) coordinated with the Guangxi Zhuang Autonomous Region (China) to organize a ceremony to announce the official opening of the bilateral border gate pair Hoanh Mo (Vietnam)-Dong Trung ( China), including the Bac Phong Sinh (Vietnam)-Ly Hoa (China) customs clearance route. This announcement ceremony took place in parallel at the bilateral border gate pair Hoanh Mo-Dong Trung and Bac Phong Sinh-Ly Hoa customs clearance gate. After Announcement Ceremony, many export and import shipments were cleared through customs by both sides.
Vietnam: Will build North-South High-speed Railway in 2026 – 2027
According to the Minister of Transport, Vietnam is focusing on developing the construction of a North-South high-speed railway with a length of more than 1,500km with expected implementation soon before 2030, around 2026 – 2027. Besides, Government is also drastically directing the construction of urban railway and metro systems in Hanoi and HCM. In addition, the Government of Vietnam and China are directing 3 railway projects connecting the two countries and plan to cooperate to build the first railway line in mid-2025, which is the Lao Cai – Hanoi – Hai Phong route.
Dong Thap: My An-Cao Lanh Expressway is expected to start construction in 2024
My Thuan Project Management Board said that the My An – Cao Lanh Expressway construction investment project phase 1 passes through Cao Lanh and Thap Muoi districts (Dong Thap) with a length of nearly 27 km, total investment of more than 6,100 billion VND expected to start construction in December 2024. The unit has submitted a written report on the project implementation plan with a number of key milestones such as approval of technical design and estimates of construction and installation packages before end of August 2024 and expected to start construction (end of December 2024).
Hai Duong: Expected investment to build the second Logistics Center
Hai Duong People’s Committee is considering giving opinions on the proposed investment policy to implement the project “Logistics service center, petroleum and cargo port, petroleum warehouse, commercial service area” in Minh Hoa commune, Kinh Mon town. The project uses over 348,000 sqm of land with a total investment capital of over 1,438 billion VND; Construction is expected to be completed and put into operation in 2027. The project implementation term is 50 years, from the date of approval of the investment policy.
Source: Catherine Huỳnh
