INDUSTRIAL
Vietnam: The Development of Carbon Neutral Industrial Parks and Clusters
From October 2023, the European market has applied the Carbon Border Adjustment Mechanism (CBAM) through carbon taxation of all imported goods based on the intensity of CO2 emissions in the host country. The US and Japanese markets are also increasingly raising environmental standards in production. From the requirements of global buyers, IP investors are promoting the transformation of development models, attracting investment towards economic, social and environmental balance, ensuring sustainable development and implementation of green growth goals. Typically, Gia Dinh Group is investing in 2 carbon neutral ICs including Ho Son 1 IC (Lang Son), Tam Lap IC (Binh Duong).
Vietnam: Solutions for Vietnam to become a semiconductor investment destination
The Ministry of Information and Communications develops the Vietnam Semiconductor Industry Development Strategy until 2030; The Ministry of Planning and Investment presides over and develops the Project on Human Resource Development for the semiconductor industry in Vietnam until 2030 with the very specific goal of training 50,000 semiconductor industry engineers. Along with that, the National Innovation Center (NIC) was established to promote the innovation ecosystem and create new momentum for economic development. National Assembly also passed a Resolution assigning the Government to develop a Decree on Investment Support Fund.
Vietnam: 4 Northern Provinces can become the next Industrial Park hotspot
According to experts, when rental demand is high but supply in the three main industrial centers including Ho Chi Minh City, Da Nang and Hanoi is not enough to meet the demand, new IPs are increasingly developing towards the vicinity provinces. Some localities such as Hai Phong, Quang Ninh, Thai Binh and Ha Nam have the potential to become the next industrial hot spots thanks to their location adjacent to the Chinese border, maintaining their attraction to investors from China and Hong Kong and Taiwan. Rents in these localities range from 90 to 120 USD/m2/term by the end of the Q1/2024.
Vietnam: Industrial land rental prices may increase by 3-9%/year
According to experts, it is forecast that in the next 3 years, industrial land rental prices are expected to increase 3-9%/year in the North and 3-7%/year in the South. Rental prices for warehouses and ready-built factories also increased slightly by 1-4%/year. In the next 12 months, the southern market will have more than 270,000 m2 of modern warehouses and factories expected to be launched on the market in the next quarter. Following that, no new supply was announced for the second half of 2024. The North is expected to record a significant amount of new supply with a total area of about 185,000 m2 in Bac Ninh and Hung Yen.
Vietnam: Viglacera’s Industrial Real Estate Development Plan
In 2024, Viglacera said it will continue to look for new projects (Industrial Park – Urban – Service – Social Housing, worker housing) in Bac Ninh, Thai Nguyen, Yen Bai, Tuyen Quang, Lao Cai, Hung Yen, Lang Son, Khanh Hoa… At the same time, new legal entities were established to implement projects: Phu Ninh IP in Phu Tho (nearly 400 ha), Bac Son IP (nearly 200 ha), expanded Dong Mai IP (nearly 150 ha), Tran Yen IP in Yen Bai (nearly 255 ha), Tay Pho Yen IP (nearly 868 ha) and Song Cong II Industrial Park (nearly 296 ha) in Thai Nguyen, Industrial Park No. 1 in Hung Yen (nearly 260 ha), Doc Da Trang Industrial Park in Khanh Hoa (288 ha).
Vietnam: Decree 32/CP – Promoting the development of Industrial Clusters
Decree No. 32/2024/ND-CP takes effect from May 1, 2024, has a number of outstanding new points and some notable changes compared to other Decrees on cluster management and previous industry development. In addition, Decree No. 32 continues to provide transitional regulations on handling the establishment of industrial clusters formed before Decision No. 105/2009/QD-TTg dated August 19, 2009 of the Prime Minister promulgating the Regulations. Manage industrial clusters in a simple and flexible manner for localities while still ensuring general principles in industrial cluster management.
Binh Duong: Pilot relocation of the first factory in the oldest Industrial Park
Sung Hyun Vina Limited Liability Company with 3 factories producing export products including garments employing more than 2,000 workers in Binh Duong Industrial Park was selected for the investment relocation pilot. The plan to relocate nearly 2,900 factories and businesses in the areas of Thuan An, Di An, Thu Dau Mot and Tan Uyen cities will be implemented from 2024 to the end of 2030. To ensure that the relocation process If the relocation goes smoothly, the province will implement support policies, including land use conversion policies, financial support and measures to mitigate impacts on workers.
Binh Duong: Plans to use Song Than Industrial Park land to build the country’s largest railway station
As expected, after the land lease term of Song Than Industrial Park expires, Binh Duong will use this land fund to expand the largest cargo terminal in the country. As expected, in the immediate future Song Than station will be invested in upgrading with an estimated capital of nearly 180 billion VND. Currently, Song Than Station is the largest freight station in the South, carrying out international freight transport to China and Europe, so it is of special importance to the Southern Key Economic Region. In 2023, the volume of goods transported through Song Than station will reach 1.6 million tons, expected to reach 3.2 million tons by 2030.
Binh Duong: Hundreds of millions of dollars more ‘poured’ into Binh Duong
On April 15, in Binh Duong, within the framework of the China Horasis Forum 2024, Binh Duong province awarded the Decision approving the policy and investment certificate for a series of infrastructure, real estate, industrial projects… There are 3 infrastructure projects approved for investment including: An Son Inland Port Project (1,504 billion VND); Tam Lap 2 Industrial Cluster (585 billion VND); An Lap Industrial Cluster (456 billion VND). In addition, the province also awarded investment certificates to 8 businesses with a total investment of 223.7 million USD;
Quang Ninh: Resolving difficulties for FDI enterprises in Song Khoai Industrial Park
Some issues include value-added tax refunds, support mechanisms for businesses installing solar power, understanding the employment needs of local workers, and speeding up fire prevention procedures… is of interest to businesses and needs support. At the conference, Amata Ha Long Urban Joint Stock Company and the Asian Institute of Technology Center in Vietnam (AIT Vietnam) signed a memorandum of understanding on exchange and cooperation in training to improve the quality of human resources.
Quang Ninh: Attracted an additional 115 million USD from 2 Japanese investors
On April 19, two projects were just awarded investment certificates including: Project on manufacturing and trading of plastic molding components, assembly and molding, invested by Tenma Vietnam Co., Ltd. ( Japan), with a total investment of 56 million USD. The project is expected to complete infrastructure investment items and come into operation from the second quarter of 2025. The Yaskawa Vietnam mechanical and electrical system project, by Yaskawa Asia Pacific Company of the Yaskawa Japan Group, has a total investment of nearly 59 million USD. It is expected that the entire project will be put into operation from April 2026.
Ninh Thuan: Expected to call for investment in 13 Industrial Clusters
In the period 2021 – 2030, Ninh Thuan plans to call for investment in 13 Industrial Cluster with a total area of 480.28 ha. These are Phuoc Dai industrial clusters (35 ha); Phuoc Tien 1 (30 ha); Tri Hai (30 ha); Phuoc Dan Rural industries (20.28 ha), Loi Hai 1 (15.58 ha); Loi Hai 2 (33.42 ha); Phuoc Nam 1, 2, 3, 4, 5 (all 50 ha); Seafood processing (17 ha); Phuoc Minh 3 (49 ha). Ninh Thuan Department of Industry and Trade said that industrial clusters Phuoc Nam 1, Phuoc Nam 2, Phuoc Nam 4 and Phuoc Nam 5 currently have interested investors.
Yen Bai: Proposal to approve the Tran Yen Industrial Park Project
he Ministry of Planning and Investment has just issued Appraisal Report No. 2794/BC -BKHDT sent to the Prime Minister on the dossier approving the investment policy of the project of investment in Tran Yen Industrial Park (phase 1). It is invested by Viglacera Corporation. The project’s land use scale is specifically determined after the content of converting forest land use purposes is clarified by the province. The total expected investment capital of the Project is 2,184.33 billion VND; Project implementation progress shall not exceed 36 months from the date of land handover by the State.
Bac Ninh: Started construction of the Ready-built Factory and Warehouse project
On April 17, Vietnam Industrial Park Group started construction on the Ready-Built Factory and Warehouse project at Thuan Thanh III Industrial Park – Division B, Bac Ninh province with a scale of 14 hectares.
The project is expected to provide the market with more than 90,000 sqm of warehouse and workshop floor space for rent and is expected to attract investors from potential industry groups such as high-tech industry, clean technology, and electronics, light industry, food processing, supporting industries.
Ba Ria – Vung Tau: BOE Technology Group started construction of the Factory
On April 18, BOE Technology Group (China) started construction of the BOE Vietnam smart terminal factory phase 2, at Phu My 3 Specialized Industrial Park (Phu My town, Ba Ria- Vung Tau). The project’s goal is to assemble and produce televisions, high-resolution screens for computers, electronic components and plastic structures, with a capacity of 134.7 million products/year.
The total investment capital of the project is about 275 million USD. When put into operation, the estimated output value is about 1 billion USD/year and creates jobs for more than 4,000 workers.
LOGISTICS
Vietnam: It is forecasted that the volume of goods passing through seaports will skyrocket
The Ministry of Transport forecasts that goods and passengers through Vietnam’s seaport system will both increase compared to Decision 1579/QD-TTg dated September 22, 2021 approving the Master Plan for development of Vietnam’s seaport system period 2021-2030, vision to 2050. Specifically, for container cargo, the adjustment is increased by about 7.3-8.3 million Teu, concentrated in seaport group No. 1, increasing by about 0.9-1. 8 million Teu and seaport group No. 4 increased by about 5-6.3 million Teu.
Vietnam: Many challenges when moving towards green Logistics
According to experts, the challenges in greening the logistics industry of domestic enterprises include: firstly, the awareness and understanding of businesses, especially small and medium-sized enterprises, about the story of greening the logistics industry. Second is financial resources. Thirdly, is the challenge of qualifications and capacity, of which the important thing is the human issue. Fourth is information technology issues and fifth is infrastructure. Promoting green logistics for comprehensive and sustainable growth is not only Vietnam’s own requirement but the whole world’s requirement.
Binh Dinh: Adjusting the policy of expanding Qui Nhon Port
Decision No. 998/QD-UBND dated March 27, 2024 of the People’s Committee of Binh Dinh province on adjusting the investment policy of the Qui Nhon port expansion project until 2030, clearly stating the adjustment of investment capital of the project from 50 billion VND to 67.7 billion VND. The project construction progress has also been adjusted. Specifically, from Q1/24 to Q2/24, infrastructure investment will be carried out in the warehouse category; From Q2/24 to Q3/24, there will be investment in roads; From Q4/24 to Q1/25, complete the remaining items to bring the project into operation.
Lang Son: Commencement of Chi Lang expressway project – Huu Nghi border gate
On April 21, Prime Minister Pham Minh Chinh issued an order to start construction on the Chi Lang – Huu Nghi border gate. This is the last expressway section of the Eastern North-South Expressway. Once completed, this expressway will connect the expressway from Cao Bang to Ca Mau. The Huu Nghi – Chi Lang border gate expressway has a total length of 60 km. The project has a total investment of more than 11,000 billion VND in the form of public-private partnership (PPP). The project is expected to be completed in 2026, with a toll collection and operation period of 25 years and 8 months.
Binh Duong: Aim to become a leader in Logistics
With the potential of being a large industrial production capital, contributing approximately 10% of the country’s total export value, Binh Duong is planning to become the region’s leading logistics locality. Up to now, Binh Duong has formed a chain of regional logistics service links with an infrastructure system including: 15 large-scale logistics centers; Among them, there are 3 ICDs and 1 international railway station serving import and export of goods; Forming 10 river ports, 21 warehouses, 19 bonded warehouses, 2 active CFS warehouses to serve production activities in industrial zones and perform the function of distributing goods to provinces in the region and export.
Source: Catherine Huỳnh
