TRILLIONS OF DOLLARS ARE INVESTED IN INDUSTRIAL REAL ESTATE.
Following two quarters of freezing due to Covid-19, the industrial real estate market is now “in the heat” with a string of new and expansion investment projects.
Bustle
Hoa Binh is a town with few real estate projects, but recently, a massive project, the project of construction investment and infrastructure business in Nhuan Trach Industrial Park (IZ), with a total investment of $1 billion, has appeared. The total area after addition is more than 213 hectares in two communes, Nhuan Trach and Cu Yen (Luong Son district), with a total investment of nearly 2,400 billion VND by Hoa Phu – Hoa Binh Co., Ltd.
The Prime Minister approved the investment policy of the Tam Thang Industrial Park expansion project’s investment in construction and infrastructure business a month ago (Quang Nam province). The Tam Thang Industrial Park project covers 248.9 hectares and has a total investment of more than 768 billion VND. The investor is Chu Lai Industrial Park Infrastructure Development One Member Company Limited.
Alternatively, Phat Dat Industrial Park Investment and Development Joint Stock Company (PDI), a subsidiary of Phat Dat Real Estate Development Joint Stock Company, is increasing its investment in district industrial park projects. Cao Lanh (Dong Thap) covers an area of 2,000 hectares.
The People’s Committee of Dong Thap province has officially approved Phat Dat for investment research. As a result, this company will conduct research on three industrial park projects in Cao Lanh district: Cao Lanh Industrial Park, Cao Lanh II Industrial Park, and Cao Lanh III Industrial Park, with a total investment of more than 14,720 billion VND for all three projects, with the following phases: phase I (2021-2025), developing a scale of 1,000 ha; phase II (2026-2028), developing a scale of 1,000 ha; phase III (2027-2028), developing a scale of 1,000 ha (2026 – 2030, scale development from 1,000 ha or more).
Furthermore, Phat Dat intends to develop industrial and service urban clusters on a 1,000-6,000-hectare scale in locations with existing infrastructure and advantages such as Da Nang, Quang Ngai, Binh Duong, Dong Nai, Ba Ria – Vung Tau, Dong Thap…
Following a “freezing” period in the third and fourth quarters of 2021 due to Covid-19, new industrial real estate supply is expected to increase significantly this year. After construction delays caused by the epidemic, Ho Chi Minh City did not record any new industrial park real estate projects in the fourth quarter of 2021. However, 5 new IPs are expected to enter the market in Ho Chi Minh City this year, providing more than 4,200 hectares of industrial land. In Binh Chanh district, four industrial zones are located: Le Minh Xuan Industrial Park phase II (319 ha), Le Minh Xuan Industrial Park expanded (110 ha), Vinh Loc I Industrial Park phase III (200 ha), and Phong Phu Industrial Park (180 ha).
Similarly, the new supply of Hanoi’s industrial real estate market is concentrated in 2022 and 2023, with Quang Minh II Industrial Park (266 ha), Thanh My – Xuan Son Industrial Park (108 ha), Soc Industrial Park. Son (306 ha), Soc Son II Industrial Park (204 ha), HANSSIP Phase II Industrial Park (300 ha), and Phung Xa Industrial Park being the most prominent (84 ha).
Continue to attract foreign investment
SLP is a foreign investor who has recently drawn attention with the start of construction on the industrial real estate project SLP Park Xuyen A (phase I) in Long An province. This is SLP’s second project in Long An and its third in Vietnam. The first phase of the project is scheduled to be completed in the first quarter of 2023, with a total warehouse area available for lease of approximately 84,000 m2.
“The Covid-19 pandemic has changed the market, accelerating the growth of e-commerce and increasing demand both in the short term and in the future,” said Mr. Jenkin Chiang, CEO and co-founder of SLP. Industrial real estate is long-term and long-term. The demand for ready-built warehouses has also increased significantly in recent years. With our projects, including SLP Park Xuyen A, we intend to respond quickly to our customers’ increasingly diverse logistics needs, seize the advantage in the early stages of development, and modernize Vietnam’s logistics sector.”
Previously, SLP joined forces with strategic partner GLP to announce the formation of the GLP Vietnam Development Partners I fund, which will have an investment capacity of 1.1 billion USD. This is one of Southeast Asia’s largest logistics development funds.
A representative of SLP told a reporter from Investment Newspaper that up to now, SLP has developed 6 projects in Vietnam with a total land area of about 860,000 m2, focusing primarily on the two largest markets, the residential area. The areas of Hanoi and HCMC. “The company intends to develop a land bank in Vietnam of up to 1-1.5 million m2 of total floor area (GFA) in the coming years,” said the SLP representative.
According to Colliers Vietnam, Binh Duong, Binh Phuoc, and Dong Nai will also be the focus of industrial real estate in 2022 due to the benefits of connecting transportation infrastructure and a thriving economy. With the appearance of many large enterprises such as Vingroup, FLC, Becamex, and HUD, Binh Duong is a hot spot attracting “enterprises” to invest in industrial real estate.
Da Nang has emerged as a bright spot in the central region for attracting foreign investment in industrial parks. Arevo Inc. (USA) is conducting research and investing in a 3D printer factory project in Da Nang Hi-Tech Park, with a total investment of 135 million USD. Da Nang has also attracted the United States Enterprise semiconductor manufacturing plant project of investors Ha Vinh Ly and Nhe Thi Le (USA), with a capital investment of 110 million USD; the Fujikin Danang Research, Development, and Production Center project of Fujikin International Co., Ltd. (Japan), with a capital investment of 35 million USD; and the EPE Packaging Vietnam (Japan) project with a capital investment of 300,000 USD.
