HIGHLIGHTS OF INDUSTRIAL MARKET
Vietnam: What are the prospects for the Industrial Real Estate market?
VARS experts believe that Vietnam’s industrial real estate market still has a lot of room for growth in the future, promising to continue to maintain strong development momentum and play a key role in Vietnam’s economy. Accordingly, the development of the logistics industry will lead to a strong increase in demand for warehouses and logistics centers, especially when e-commerce explodes. Domestic and foreign logistics businesses have also been actively expanding their scale and scope of operations in Vietnam. Industrial real estate “giants” also researching and developing green IPs.
Vietnam: Industrial Real Estate continues to record optimistic signals
According to experts, the wave of investment and expansion of production and business activities of FDI into Vietnam leads to a continued increase in demand for renting IP space or factories. In fact, due to increased demand, the price of land and factories for rent continues to increase. Industrial land prices in northern increased slightly by about 8% over the same period in 2023, reaching an average of $133/m2/remaining term. Industrial land prices in southern maintain an average of 189 USD/m2/remaining term, stable compared to the previous quarter and increasing 2.4% over the same period.
Vietnam: Developing the Industrial Park Law – Welcoming high-quality investment
The Ministry of Planning and Investment is proposing to develop a law with the tentative name of the Law on Industrial Parks and Economic Zones to create conditions for Vietnam to build large IPs that meet the requirements of supply chain development as well as supply chain development. such as green economic development according to current directions. Accordingly, the Ministry of Planning and Investment proposes policy groups in the content of the law to promote the development of IPs and EZs, meeting the requirements of industrialization and modernization of the country.
Vietnam: How is the industrial park group’s business in the first quarter of the year?
Statistics on business results in the Q1/2024 of 10 IP real estate enterprises show that 7 enterprises recorded profit growth and 3 enterprises recorded profit decline. In particular, this quarter’s profit champion belongs to IDICO Corporation with more than 2,467 billion VND in net revenue, up 115% and more than 797 billion VND in net profit, up 355% over the same period. Sonadezi recorded net revenue growth of more than 21% to nearly VND 1,292 billion. Saigon VRG brought in 1,826 billion VND in revenue, an increase of 24% over the same period. Tin Nghia recorded net revenue of more than 38 billion VND (up 21%),…
HIGHLIGHTS OF ECONOMIC & INDUSTRIAL PARKS
Vietnam: Development orientation of 11 Central Coastal Economic Zones
Many provincial plans for the period 2021-2030, with a vision to 2030, just approved by the Prime Minister, have oriented the development of 11 EZs in the coastal and coastal areas of North Central and Central Coast. Of these, the 11 EZs mentioned above include: Nghi Son (Thanh Hoa), Southeast Nghe An (Nghe An), Vung Ang (Ha Tinh), Hon La (Quang Binh), Southeast Quang Tri ( Quang Tri), Chan May – Lang Co (Thua Thien Hue), Chu Lai (Quang Nam), Dung Quat (Quang Ngai), Nhon Hoi (Binh Dinh), Nam Phu Yen (Phu Yen), Van Phong (Khanh Hoa).
Ho Chi Minh: Proposal to build more high-rise factories in HCM City High-Tech Park
The High-Tech Park Management Board has just issued Document No. 529/KCNC-XTĐT to the People’s Committee of Ho Chi Minh City proposing to build a high-rise smart factory in the High-Tech Park to optimize the exploitation and effective use of land in the context that the land fund at SHTP is not much left. Up to now, the remaining factory area for rent in the high-tech sector is about 13,000 sqm, only enough to accommodate 3-4 additional investors (average 3,471 sqm/project). The investment attraction target set by 2025 is to attract over 50 high-tech projects.
Bac Giang: Adjusting a series of Industrial Parks
For IP development, take Huyen Son IP (150 ha) out of planning; adjusted to reduce the area of Tien Son-Ninh Son IP by 133 ha. Adjusting and shifting the boundary of Tien Son-Ninh Son IP-Urban-Service Park; The IP area after adjustment is 167 ha (down 56 ha); Adjusting the planning of Tien Son – Ninh Son logistics park with an area of 77 ha to convert it into IP land. Adjusting An Ha IP, Lang Giang district (300 ha) from the period 2031-2050 to be implemented in the period 2021-2030, of which, implemented in the period 2021-2030 with a scale of 206 ha, in the period 2031-2050 expands another 94 ha.
Nam Dinh: Approving the preparation of the General Planning of 2 Industrial Parks
According to Decision No. 1090/QD-UBND, Nam Dinh People’s Committee assigned the Provincial IPs Management Board to preside over the preparation of the General Planning Project for the construction of Hai Long IP with a planning area of about 1,100 ha; The planning scope is in 4 communes: Bach Long, Giao Long, Giao Chau, Giao Nhan. For Nam Hong IP, the province assigned the Provincial Industrial Park Management Board to preside over organizing the preparation of the construction zoning with a planning area of about 200 ha; The planning scope is in 3 communes: Nam Hong, Nam Loi, Nam Thanh.
Hai Duong: Establishing a 5,300ha specialized Economic Zone
Hai Duong Province Specialized Economic Zone is expected to be located in the west of Hai Duong province, in two districts of Binh Giang and Thanh Mien. It has a total area of 5,300 ha with an expected investment capital of 78,000 billion VND. The development roadmap is expected to establish project in the Q4/2024 and divided into 2 periods 2024 – 2025 and 2026-2030. The project will form 7 functional subdivisions including: 13 IPs will be formed and 3 ICs with a total area of more than 3,150 ha. The commercial, service and logistics area has an area of 75 ha. The innovation center is about 60 ha…
Hanoi: Approval of Phung Hiep Industrial Park
he Deputy Prime Minister has just signed Decision No. 445/QD-TTg on investment policies for construction investment projects and infrastructure business in Phung Hiep IP. Project implementation locations are in To Hieu, Nghiem Xuyen, Thang Loi and Dung Tien communes, Thuong Tin district. The investment project’s land use scale is 174.88 ha with a total investment capital of 2,938 billion VND. The project’s operating term is 50 years from the approval date. Project implementation progress should not exceed 36 months from the date the State allocates or leases land.
Thanh Hoa: There is an additional Industrial Park with a scale of 540 ha
Thanh Hoa Provincial People’s Committee has just approved the 1/2000 construction zoning plan of Phu Quy Industrial Park, located in 7 communes of Hoang Hoa district including: Hoang Kim, Hoang Trinh, Hoang Son, Hoang Quy, Hoang Xuyen communes, Hoang Cat and Hoang Quy, Hoang Hoa district. The planning area is about 540 ha. The project functions as a multi-industry IP, with priority given to high-tech industry; manufacturing, processing, mechanical, and automobile industries; pharmaceutical industry; food industry… Labor forecast is about 36,000 – 58,500 people.
Bac Giang: Song Mai – Nghia Trung Industrial Park will soon be added
The People’s Council of Bac Giang province, term XIX, term 2021-2026, recently held the 16th session to approve the contents of adjusting the Bac Giang Provincial Planning for the period 2021-2030, with a vision to 2050. At the same time, it approved Construction zoning project of Song Mai-Nghia Trung IP along with a series of other important draft resolutions. Accordingly, the planning boundaries include Song Mai commune, Da Mai ward, Bac Giang city and Nghia Trung commune, Viet Yen district. The total planning area is 204.45 ha. The project’s scale is expected to attract about 45,000 workers.
Phu Yen: Approving the planning adjustment project of Hoa Hiep 1 Industrial Park
According to the 1/2000 scale construction zoning adjustment project approved by the People’s Committee of Phu Yen province on May 9, 2024, Hoa Hiep 1 Industrial Park has a total planning area of 102.33 ha. Of which, land for factory construction is 67.18 ha; Traffic land is 17.19 ha; Green land is 14.08 ha; Land in the central area, services 1.16 has… Labor target is 5,500 people. In terms of nature, the project is a multi-industry industrial park with high added value; In particular, priority is given to processing and manufacturing industries that are less polluting and environmentally friendly.
Hai Duong: Approved the planning to build expanded Dai An Industrial Park
Recently, the Hai Duong People’s Council approved the planning project for the construction of expanded Dai An IP, scale 1/2000. The land for project planning research is located in Tu Minh ward and Lai Cach town, Cam Doai commune, Cam Dong. The total planned area is about 416.21 ha. The planning of Dai An industrial park expansion includes 2 subdivisions in 2 phases and has been implemented. This is an industrial park with synchronous investment in modern technical infrastructure; attract professions according to the province’s investment attraction fields and relevant laws.
HIGHLIGHTS OF INDUSTRIAL PROJECTS
Yen Bai: Japanese corporation invests in biomass power plant project
On May 8, the People’s Committee of Yen Bai province gave Erex Group and Honna Hitoshi the decision to approve the investment policy, and at the same time approved the investor of the Yen Bai 1 biomass power plant project in Bac Van Yen Industrial Cluster, Van Yen district. The project will be built on an area of about 10 ha with an expected total investment capital of 100 to 120 million USD. It is expected that the plant will begin operating in early 2027, generating electricity with a capacity of 50 MW, including about 45 MW of stable renewable power source for EVN’s power transmission system.
Quang Tri: Approved investment in wood processing factory project
On May 9, the People’s Committee of Quang Tri province made a decision to approve the investment policy and at the same time approve the investor of VBE Quang Tri Plantation Wood Processing Factory project of VBE Quang Tri Joint Stock Company. The project has an expected land area of 30,856 sqm with a total investment capital of 292.632 billion VND at Cam Tuyen Industrial Cluster, Cam Tuyen commune, Cam Lo district. The project is expected to carry out construction and installation of equipment between June 2025 and June 2026; Completed and put into operation in July 2026.
Hai Phong: Commencement of High-tech biodegradable materials factory project
On May 11, construction started on the Ecovance high-tech biodegradable materials factory project of investor Ecovance Co.Ltd, at Dinh Vu Industrial Park, in Dinh Vu-Cat Hai Economic Zone, Ward Dong Hai 2, Hai An district. The project has a usable area of more than 32,000 sqm, with a total investment capital of over 2,300 billion VND. The expected goal is that by 2030, the total investment capital of the project will reach over 11,800 billion VND. It is expected that in June 2025, the project will complete construction; July 2025, trial operation; In September 2025, the project officially operates.
Binh Phuoc: Commencement of the largest green cashew factory in Vietnam
On May 11, the groundbreaking ceremony for the construction of Ba Tu Binh Phuoc agricultural and food processing factory took place with a capital of 6.5 million USD. This is the largest green cashew processing factory in Vietnam invested by Gia Bao Group. This project has an area of 20,000 sqm with a capacity of 400 thousand tons/year located in Dong Phu district, Binh Phuoc province and is expected to be completed and put into operation from June 2025. The project’s goal is to turn the factory into a green agricultural processing center in the cashew capital of Binh Phuoc.
Lao Cai: Korea Vina started construction of a Garment Factory
On May 12, at Dong Pho Moi Industrial Park, Korea Vina Garment Export JSC started construction of a garment export factory. It has a total investment capital of nearly 100 billion VND, with a production scale of 1 million garment products; 1 million products of hats, shoes, sandals; 500,000 handicraft products/year. Total revenue is estimated at about 100 – 120 billion VND/year for export to the US and European markets and creates jobs for more than 600 workers. The project is built in 2 phases. Phase 1 progress from November 2023 to November 2025; Phase 2 from November 2025 to May 2026.
Lao Cai: Construction of an industrial waste treatment plant
On May 12, at Tang Loong Industrial Park, Phu Nhuan Commune, the groundbreaking ceremony of the Industrial and Hazardous Waste Treatment Plant Construction Project took place. The project is invested by Viet Son Green Environmental Treatment Services JSC. According to schedule, the plant will go into operation in phase I at the end of 2025 and will complete construction in July 2026. The project has a processing capacity of about 320,000 tons of waste/year; create jobs for about 300 workers; Reduce transportation and waste treatment costs for businesses in Tang Loong industrial park;…
Hung Yen: Daesang Duc Viet inaugurated Hung Yen Factory No. 2
On May 13, Daesang Duc Viet Joint Stock Company officially inaugurated Hung Yen Factory No. 2. The project is located on the campus of Daesang Duc Viet’s Hung Yen Factory and will be built from July 2023 with a usable area nearly 12,000 sqm. Factory No. 2 will have a variety of new product lines such as instant sausages, dumplings, spring rolls or premium meatballs. The project is designed as a closed loop with modern production machinery lines, promising to bring quality products, ensuring food safety and hygiene for consumers.
Binh Duong: Commencement of Pandora Vietnam Factory
On May 16, the world’s largest jewelry company Pandora started construction on the Pandora Production Vietnam factory. The factory was built in VSIP III, with a total investment of 150 million USD. Currently, this factory has completed 61.7% on schedule and is guaranteed to put some main items into operation from August 2024. When put into operation, it will create jobs for more than 7,000 workers and produce 60 million jewelry products per year. This is the fourth production facility and is also Pandora’s first factory built outside of Thailand. This factory will use 100% renewable energy sources.
Quang Ninh: Started construction of a factory worth more than 600 billion VND
On May 17, Tamagawa Vietnam Co., Ltd. started construction on a factory specializing in manufacturing absolute angle detectors for electric car engines in Song Khoai IP. It is built on a total land area of more than 6.27 ha; has a total investment capital of more than 35 million USD, with a capacity to create 14.49 million products/year. It is expected that the factory will officially come into operation around the beginning of the Q2/2025. Tamagawa Seiki Corporation (Japan) specializes in research, production and sales of technology products for the defense, aerospace, factory automation equipment.
Thanh Hoa: Commencement of a 5,000 billion VND textile factory
On May 25, at Thai Thang Industrial Cluster (Hoang Hoa), South Asia Knitwear Limited and Viet Hung Group JSC coordinated to organize the Groundbreaking Ceremony of Nam Ich Thai Thang Textile and Garment Factory project. The project is invested by South Asia Knitwear Limited Co., Ltd., a member of Nam Ich Group (Hong Kong) with a total value of 1,090 billion VND. Itt is planned on an area of 81,972 sqm, aiming to produce high quality woolen textile and garment products to serve the Vietnamese market and export. Construction of the factory will be carried out from now until January 2025.
Long An: Thai Tuan Group built a textile products factory
On May 25, Thai Tuan Group JSC held a groundbreaking ceremony to build a textile products finishing factory in Duc Hoa district, Long An province. The project has a land area of more than 36 ha, a scale of 180 million meters of fabric/year, equivalent to 36,000 tons of products/year, with a total investment capital of over 12,000 billion VND. Previously (June 2022) in Long An, Thai Tuan Group held the Groundbreaking Ceremony of Thai Tuan High-Tech Complex Project with a total investment of 16,000 billion VND. The project is built in Duc Hoa III Industrial Park, with a total area of 85 ha.
Bac Ninh: Viglacera attracts more than 200 million USD in foreign investment capital
Recently, in Shanghai City (China), Viglacera signed contracts with 4 businesses operating in China’s electronics, high-tech, and semiconductor manufacturing sectors. Accordingly, the projects signed with Viglacera are projects in Yen Phong II-C Industrial Park, including: Micro Commercial Components Vietnam Co., Ltd., belonging to Yangjie Technology; Cayi Technology Vietnam Company. In addition, Viglacera also signed high-value contracts with two companies manufacturing, processing and assembling electronic component products, with a total investment capital of 80 million USD.
Hai Phong: Inauguration of GoodWe’s production facility in Vietnam
Recently, GoodWe, a leading company in the solar energy industry, officially opened its first manufacturing factory outside of China in Hai Phong.
With an area of about 14,800 sqm, the factory is planned to specialize in the production of grid-connected and hybrid inverters for export to serve markets in North America and key markets in Asia.
The factory is the third facility in GoodWe’s manufacturing network, helping deliver high-quality, consistent products to customers around the world.
Thanh Hoa: There will soon be a 200 billion VND factory producing electronic toys
The People’s Committee of Thanh Hoa province has just issued Decision No. 1917/QD-UBND deciding to approve the investment policy and investor project of manufacturing and processing decorative LED products and electronic toys. in Thai Hoa commune, Trieu Son district. It has an investment capital of more than 192 billion VND, the land area for project implementation is 68,000m2. The project investor is Tham Thai Hoa Trieu Son Company Limited. Within 12 months, the company will have to complete procedures and documents to lease land to implement the project according to regulations.
Ba Ria – Vung Tau: Nam Kim invests in a new factory
This year, Nam Kim plans to expand capacity with the investment in building the Nam Kim Phu My roofing steel factory in My Xuan B1 – Dai Duong IP. The project scale includes a zinc plating line of 350,000 tons/year, 2 zinc-aluminum alloy plating lines of 300,000 tons/year. It is expected that phase 1 of the project will have a capacity of 800,000 tons/year in the Q2/2024, increasing the total capacity of the entire system to 70% and about 60 – 70% of output from the new factory can be exported. It is known that the total investment capital of phase 1 project is 4,500 billion VND.
HIGHLIGHTS OF LOGISTICS MARKET
Vietnam: Implemented 9/29 major transportation projects linking the Southeast region
To date, out of 29 important transportation projects linking the Southeast region, 4 projects have started construction and 5 projects are implementing investment procedures. Accordingly, the HCM Ring Road 3 project has basically started construction; The Ben Luc-Long Thanh expressway project is under construction, the total volume of the bidding package is currently about 80.05%; The construction project of Passenger Terminal T3-Tan Son Nhat International Airport has completed more than 50% of the rough construction volume;..Recently, 20 projects are being researching, implementing.
Hai Phong: Completed construction of berths 3 and 4 of Hai Phong international Port
On May 10, Hai Phong Port Joint Stock Company held a ceremony to attach the sign to complete the construction of wharves 3 and 4 of Hai Phong International Gateway Port -Lach Huyen port area.
The project includes two main wharves 750m long, 1 barge wharf 150m long, a system of storage yards, roads, auxiliary works and synchronous technical infrastructure, able to receive ships with a tonnage of 8000 – 14,000 TEU, equivalent to 100,000 – 160,000 DWT, meeting cargo throughput of 1.1 million TEU/year.
Ba Ria-Vung Tau: Approved the policy for Cai Mep Port to receive super container ships
The Ministry of Transport has approved the policy for Cai Mep International Container Port (CMIT) invested by Cai Mep International Port Limited Company to officially receive container ships up to 214,121 DWT to reduce load. Cai Mep international container port is located at Cai Mep wharf area, Ba Ria-Vung Tau seaport. The port has a minimum depth of -16.5m in front of the wharf with 600 m of wharf and an area of 48 hectares; and capacity reaches more than 1.1 million Teu. The port has 6 Super Post-Panamax sized shore cranes, empty container handling equipment, heavy container handling equipment.
Ba Ria-Vung Tau: Signing a MoU connecting 2 adjacent seaports at Cai Mep-Thi Vai
On May 24, in Phu My Town, Cai Mep-Thi Vai Tan Cang Port (TCTT) of Saigon Newport Corporation and Cai Mep International Port (CMIT) co-organized held the opening ceremony of the port connecting the two ports TCTT-CMIT. These are two adjacent seaports in the Cai Mep deep-sea port area and have many similarities in terms of wharf infrastructure to connect to form a common wharf between the two ports. The wharf length of each port is 600m, so when connecting the two ports, it will form a common wharf of 1,200m long that can receive 3 mother ships to handle cargo at the same time.
Lang Son: Planning for Border Gate Economic Zone of 39,400 hectares
Planning to develop Dong Dang-Lang Son border gate economic zone into a smart, modern, dynamic border gate economic center, becoming a driving force for development, a smart, sustainable urban area, with national identity and connection economic; is a national and international border gate and logistics service center; is a growth pole and center of the Northeast sub-region in terms of economy, tourism, trade, financial services, agriculture and high-quality forestry. It has been adjusted in planning as an important gateway for VN connecting with China and Southeast Asian countries.
Source: Catherine Huỳnh
