INDUSTRIAL & LOGISTICS
Vietnam: In the wave of Asian Data Center investment
According to experts, Vietnam is a relatively young market with a total current capacity of 45MW and a growth rate of 6.63% CAGR in the period 2022-2027. 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.
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, coming from Nam Son Hap Linh IP, Quang Chau IP, Tan Phu Trung IP, industrial clusters in Hung Yen, Long An and Trang Due 3 IP. 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.
Vietnam: Vietnam and Mexico have become the top destinations for Chinese businesses
According to the Financial Times, in the first 3 months of 2024, Chinese businesses planned to invest in at least 39 production and logistics projects in Vietnam and 41 projects in Mexico. Notably, both Mexico and Vietnam have now surpassed the US to become the top investment choices of Chinese businesses, specifically in manufacturing and logistics projects. China’s exports of computer components to Vietnam have more than tripled to $1.7 billion from 2017 to 2023. According to Eurasia Group, the trade surplus between Vietnam and the US has increased significantly, because Chinese companies are simply moving products to Vietnam.
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.
Thai Nguyen: Started construction of 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. It is designed speed of 60km/h, 2 lanes; roadbed width 9m.
Thua Thien Hue: Will invest in establishing and expanding 20 Industrial Clusters
Thua Thien Hue People’s Committee has just issued a plan to implement the Industrial Cluster (IC) Development Plan for the period 2021-2030. The specific goal of this plan is to continue to invest in completing the technical infrastructure of 5 ICs already in operation; Complete procedures, start construction of technical infrastructure of 2 ICs that have been established. It is expected that by 2030, the province will invest in establishing and expanding 20 ICs to meet the need for space to attract investment, relocate production facilities to clusters to ensure effective land use; strive to achieve 100% of ICs invested in centralized wastewater treatment systems meeting standards as prescribed by law.
Ha Nam: Merged 4 Industrial Clusters and Parks, establishing a High-Tech Park
According to the provincial planning period 2021-2030,
with a vision to 2050, Ha Nam province will prioritize merging Chau Giang IP (475 billion VND) into Chau Giang I IP and Le Ho IC (900 billion VND) into Kim Bang I IP. The province will also speed up procedures and deploy investment in building technical infrastructure in Ha Nam High-Tech Park with a scale of about 663 ha (Ly Nhan district). By 2030, the province will prioritize the establishment, expansion and development of IPs including Kim Bang II, Kim Bang III, Kim Bang IV, Thanh Binh I, Thanh Binh II, Binh Luc, Thai Ha III. In addition, the province expanded with 3 ICs, establishing 14 new ICs with a total area of 726 ha.
Hai Phong: Approved the project to establish a 20,000ha Coastal Economic Zone
Hai Phong Economic Zone Management Board has completed the construction of the Project to establish the Southern Hai Phong Coastal Economic Zone and was approved by the City Party Committee Standing Committee. Accordingly, it is expected to have an area of about 20,000 ha, in Vinh Bao, Tien Lang, An Lao, Kien Thuy and Do Son districts. It was established with a coastal highway, Nam Do Son port (planned as an international gateway port and domestic and international transit port), Tien Lang international airport, 2 railway lines (Lao Cai-Hanoi-Hai Phong, Nam Dinh-Hai Phong- Quang Ninh).
Thai Binh: T&T Group cooperates with Marubeni – Japan to invest in Green Industrial Parks
Recently, the Joint Venture of T&T Group and Marubeni Group (Japan) proposed to the People’s Committee of Thai Binh province to research and invest in developing a green industrial park and become a partner providing green energy source – solar power Rooftop for businesses operating in production and business activities in IPs in Thai Binh. T&T Group is a multi-industry economic group, multi-sector such as real estate; agriculture, forestry and fisheries; energy; and logistics infrastructure. In Thai Binh, Marubeni participated in the general contractor of Thai Binh 1 Thermal Power Plant.
Thai Binh: VSIP built an Industrial Park worth more than 4,900 billion VND
VSIP plans to invest in an industrial park with a scale of 344 ha, investment capital of 4,930 billion VND in An Tan and Thuy Truong communes. This area is about 10 km from Diem Dien port and 40 km from Dinh Vu port in Hai Phong. The goal of VISP Thai Binh is to attract projects in the fields of high technology, energy saving, and clean technology. Investors expect that from now until the end of the year is the time for EIA and design appraisal. However, VSIP has not provided more detailed information about the implementation progress and operating time of this industrial park in the EIA report.
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 expansion Industrial Park
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.
Ba Ria – Vung Tau: Hoa Binh Rubber proposes to build Phuoc Tan Industrial Cluster
Hoa Binh Rubber Company said it had an application to register as an investor to build infrastructure and an investment report to establish the 50-hectare Phuoc Tan Industrial Cluster with a total investment of 298 billion VND, submitted to the People’s Committee of Xuyen Moc District on October 19, 2023. According to the previous announcement of Xuyen Moc District People’s Committee, the project located in Phuoc Tan and Hoa Binh communes. The total investment of the project is 462.5 billion VND. The project aims to arrange industrial production in a green – clean – sustainable direction.
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. In April 2023, Indusvalley Chu Lai and Kärcher Group started construction of the Factory Rental Project -Indusvalley Chu Lai at Tam Hiep Port Logistics IP.
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). The goal is that by 2030, the completed investment factory will reach a capacity of 60,000 m3/day and night.
Source: Catherine Huỳnh
