Sublimation expectations of industrial real estate on the North coast

With a high occupancy rate and attracting many foreign-invested enterprises (FDI), the Northern region is witnessing a boom in the industrial real estate market. This segment is forecasted to thrive in coastal provinces such as Quang Ninh, Hai Phong,…

According to data from the Department of Competition and Consumer Protection – Ministry of Industry and Trade, currently, the Northern region has about 63.5 thousand hectares of industrial land put into planning with 238 industrial zones and clusters already in operation. active and under construction.

2021 is a year marking the boom of the Northern industrial real estate market with a high occupancy rate and attracting more businesses. This is considered an inevitable growth, because this is the area where the provinces and cities attracting the top FDI in the country such as Quang Ninh, Bac Ninh, Bac Giang,…

Statistics from the Ministry of Industry and Trade also show that Hai Ha Industrial Park (Quang Ninh) is currently the largest industrial area in the region, with an area of ​​4,988 hectares, equivalent to a market share of nearly 8% in the market. followed by Dam Nha Mac Industrial Park.

As for the remaining IPs, the market share is smaller, but these are all large industrial zones with the scale from 750 to nearly 1,700 hectares such as Deep C, Nam Dinh Vu, Yen Phong, VSIP,… In the future this will be potential industrial areas in Quang Ninh due to being invested and developed and possessing a large supply to meet the high demand in the market.

Market share of industrial zones in the North based on size (2020)

According to market share data on the industrial real estate market in the North, up to the present time, the market is mainly concentrated in the Northeast region, of which Quang Ninh is prominent with the size of the area. the area is up to 11.3 thousand hectares, equivalent to 18% of the area’s scale.

In addition, the 5 provinces with the highest concentration include Quang Ninh, Bac Ninh, Hung Yen, Hai Phong, and Hanoi, accounting for more than 50% of the total market share. This shows that the industrial real estate market in the coastal provinces as well as the central area will be focused on development investment, having higher demand and attracting more businesses. The reason is because these areas have modern infrastructure facilities and developed transportation routes and are convenient for transporting materials and goods in the production process.

Industrial real estate market share in the North by province (2020)

According to the CR index (the index is calculated by the total market share of enterprises with the largest market share in the market, showing the relative size of this group of enterprises compared to the total market volume), the Ministry of Industry and Trade recognizes As a matter of fact, industrial zones are currently facing fierce competition.

The Ministry of Industry and Trade also pointed out that currently in the Northern industrial real estate market, there is no industrial park that has a dominant position in terms of area size in the market. Besides, this area is having a high level of competition when the CR indexes are all low, due to the large number of IPs and the similarity in area, so the market share is evenly distributed in the market. school.

Besides, the HHI index (similar to the CR index) is at 164, nearly 10 times smaller than the 1,800 threshold – the threshold indicating a highly concentrated market. The Ministry of Industry and Trade commented: “This shows exactly that the North market has a very low concentration, all IPs have a small market share and almost no IPs have an outstanding market share. increase market concentration”.

Assessing the potential of industrial real estate in the North in particular and Vietnam’s industrial real estate in general, experts in the field of industrial real estate said that, with a stable growth rate, an export-oriented economy, increasing trade agreements. With free trade agreements, young workforce, preferential investment policies and strategic geographical location, Vietnam continues to be an attractive destination for industrial real estate investors.

The demand for industrial land across the country as well as the North is like a magnet attracting capital from both domestic and foreign manufacturers. Besides, with the strong growth momentum of e-commerce, the logistics service segment also promises great potential in the next 12 months. Especially when the rental price of industrial land in Vietnam is still low compared to other countries in the region, 20-33% lower than Indonesia and Thailand.

Source: Hoang Lan – Congthuong.vn e-newspaper

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