INDUSTRIAL
Vietnam: Industrial real estate “benefits” from the semiconductor industry
In recent times, Vietnam has attracted many giants in the semiconductor industry such as Samsung, Qualcomm, Infineon, Amkor… with worth up to billions of USD. Semiconductor chip production is positioned as a new driving force to turn Vietnam into a prosperous country. It is forecast that by the end of 2024, Vietnam’s semiconductor industry will exceed the value of 6.16 billion USD, making VN one of the important production centers of many global semiconductor businesses. To welcome capital flows into the semiconductor industry and industrial real estate, localities and businesses need to improve their systems of policy mechanisms, infrastructure and human resources to best respond.
Vietnam: Challenges of Industrial Real Estate
Vietnam Real Estate Brokers Association believes that Vietnam’s industrial real estate market is growing strongly with much room for growth, but also faces many challenges, including investment risks when land price and construction costs increased, especially the cost of creating a land fund when the new Land Law officially took effect. In addition, key economic areas such as HCM, Binh Duong, Dong Nai are facing difficulties in expanding industrial land funds due to rapid urbanization and high competition for land. Although infrastructure has improved, it still cannot keep up with the speed of development of IPs. Policies and administrative procedures are still complicated, time-consuming,…
Vietnam: In the first 5 months of the year, foreign investors poured more than 7 billion USD into one economic sector
As of May 20, 2024, the total newly registered capital, adjustments and capital contribution, share purchase, capital contribution purchase of foreign investors reached more than 11.07 billion USD, an increase 2% over the same period in 2023. Foreign investors have invested in 17 industries out of 21 national economic sectors. Of which, the processing and manufacturing industry leads with a total investment capital of more than 7.43 billion USD, accounting for 67.1% of total registered investment capital, an increase of 11.9% over the same period.
Vietnam: Northern Industrial Park will become a hot spot for industrial real estate
According to the expert, industrial real estate tenants in the southern provinces belong to the industries processing products from rubber, plastic, food, and beverage. Meanwhile, in the North, investment capital mainly comes from businesses in the computer, electronics or electrical product industries. Currently, industrial real estate rental prices in the North are also increasing the most in the country. In 2023, Northern region has a rental price of about 135 USD/m2/rental cycle, an increase of 33% compared to the previous year. Southern region has rental price of 188 USD/m2/rental period, the increase is only 15% compared to 2022.
Vietnam: Vingroup and Mitsubishi Corporation sign a comprehensive strategic cooperation MOU
On May 30, Vingroup and Mitsubishi Corporation signed a memorandum of understanding (MoU) for comprehensive strategic cooperation. With 5 focus areas: urban development, data processing center development, renewable energy, cooking oil recycling and the automobile industry, the two sides expect to achieve new achievements together in business activities in Vietnamese and international markets. Mitsubishi Corporation is a global business group, conducting business activities through a global network of approximately 1,800 group companies.
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 Industrial Park, Yen Bai province. This project has a total investment of 600 billion VND; It is expected to go into operation from the second quarter of 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; it is expected to go into production from the fourth quarter of 2025.
Hai Phong: Directing the relocation of a series of steel factories in 2025
Hai Phong People’s Committee has just issued a document directing the relocation of production facilities and warehouses of steel enterprises along Highway 5 in Quan Toan ward and An Hong commune in 2025…According to According to statistics, in this area there are 8 steel production and trading enterprises that are managing and using more than 50 ha of land subject to relocation. Of which, the area in Quan Toan ward (Hong Bang district) is more than 36 ha, and in An Hong commune (An Duong district) is more than 14.2 ha. In this area, besides Trung Kien JSC, which is a steel business enterprise, the rest are all steel production enterprises.
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.
Lang Son: Commencement of Ho Son 1 Industrial Cluster
On May 25, the Ho Son 1 Industrial Cluster project officially started construction. The project has a scale of 73.76 ha, total investment of 814 billion VND. The project is invested by Gia Dinh Northern Industrial Investment JSC, a member of Gia Dinh Group, implemented in Cai Kinh commune and Ho Son commune, Huu Lung district. It is expected to attract about 6,500 local workers. And it will create a land fund for concentrated industrial production, attracting domestic and foreign secondary investors to invest and develop the district’s strong industries; attract and develop industrial and handicraft production establishments, bringing revenue sources to the State budget and creating jobs for people in the area.
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. The project 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 an economic zone 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 hectares. The innovation center is about 60 hectares…
Hai Duong: Approved the planning to build expanded Dai An Industrial Park
Recently, the People’s Council of Hai Duong province approved the planning project for the construction of expanded Dai An Industrial Park, scale 1/2000. The land for project planning research is located in Tu Minh ward and Lai Cach town, Cam Doai, 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.
Long An: Approved the conversion of 35 ha of rice growing land to build an Industrial Cluster
Recently, in Document 351/TTg-NN, Deputy Prime Minister approved the People’s Committee of Long An to decide to change the use purpose of 35,3015 ha of rice growing land to non-agricultural land to implement the Industrial Cluster . Dong Quang industry in Can Giuoc district. The Ministry of Natural Resources and Environment is fully responsible for the organization of appraisal, appraisal results, completeness and accuracy of Project implementation documents to ensure compliance with regulations; Monitor and guide the implementation in accordance with the provisions of law.
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.
Bac Ninh: Chinese investors invested 700 million USD project
Recently, Talway Vietnam Company received an investment certificate from Bac Ninh People’s Committee worth 700 million USD for a new project. Talway Vietnam was established in 2019 and is a subsidiary of Shanghai Guangwei Electric Group, with a factory located in Que Vo industrial park in Bac Ninh province. Talway Vietnam’s main products include cables and automotive battery equipment, providing customers with one-stop OEM\ODM and OBM solution services… These are all finished products serving the industry. The electric car industry is very popular around the world today. Many of the company’s export products have output that ranks in the top 3 of the industry
An Giang: T&T Group and EREX cooperate to develop biomass power
Recently, T&T Group and Erex Group (Japan) signed an agreement to cooperate in research and investment in the An Giang 1 biomass power plant project with a total capacity of 50 MW. Accordingly, two parties will cooperate in researching and investing in the An Giang 1 biomass power plant project with a total capacity of 50MW located in Luong An Tra commune, Tri Ton district. Besides, two parties are responsible for sharing and exchanging information on research and evaluation related to investment efficiency, technology, engineering and finance to promote implementation COD project as planed.
LOGISTICS
Vietnam: Officially opened a dedicated road at the Huu Nghi – Huu Nghi Quan international border gate
On May 27, the ceremony announced the official opening of the specialized freight road in area 1088/3-1089, the Tan Thanh (VN) – Po Chai (China) customs clearance route in area 1090-1091; The Coc Nam (VN) – Lung Nghi (China) customs clearance at milestone 1104-1105 of Huu Nghi (VN)-Huu Nghi Quan (China) international border gate took place at milestone 1090- 1091 Tan Thanh (VN)-Po Chai (China) customs clearance entrance. At the program, the two sides carried out immigration procedures for citizens of the two countries at the Tan Thanh (VN)-Po Chai (China) customs clearance entrance.
Vietnam: Has an outstanding opportunity to become a regional Logistics Center
According to experts, in Vietnam, the scale of logistics is about 40-42 billion USD, logistics is also considered one of the fastest growing and most stable industries with an average growth rate of about 14-16%/year. . Along with the great openness of Vietnam’s economy when participating in 17 Free Trade Agreements (FTA), including many new generation Free Trade Agreements such as the FTA between Vietnam and the European Union (EVFTA), will promote the export of goods, thereby opening up great opportunities for the logistics industry to develop.
Vietnam: Where is logistics infrastructure development stuck?
Warehouses and logistics locations are mainly located in the inner city, spontaneously formed, scattered, small in area, with limited exploitation capacity, leading to not meeting the city’s development needs, giving rise to many unnecessary costs. Logistics application in the chain of production, and processing of agricultural, forestry, and fishery products still has many limitations. Domestic logistics businesses can only meet about 25% of market demand; 18% of the total amount of exported and imported goods, the remaining is done by foreign-invested enterprises.
Ho Chi Minh: Expected to start construction on 2 sections of HCM Ring Road 2 in the Q1/2025
These two projects have been approved by the HCMC People’s Council for investment by the end of 2023. In particular, the section from Phu Huu bridge to Vo Nguyen Giap street (section 1) is 3.5 km long with a total investment of 9,328 VND. billions dong. The section from Vo Nguyen Giap street to Pham Van Dong (section 2), 2.5 km long with total investment is 4,543 billion VND. According to the direction of Ho Chi Minh City People’s Committee in early April this year, the Traffic Department urgently carried out procedures to ensure the project’s commencement in December 2024.
Da Nang: Proposal to pilot the first free trade zone
In Vietnam, free trade zones have not been regulated in the legal system.Based on research on some successful free trade zone models in the world such as the EU, China, Singapore, Korea…, selectively approach successful preferential policies from economic models. has been implemented domestically, the draft Resolution proposes a plan to develop the Da Nang free trade zone, built with 3 functional areas: production; port logistics – logistics; Trade in Services. This first model is also the basis for piloting new policy research, as a premise to legislate regulations on free trade zones for the whole country.
Source: Catherine Huỳnh
