The Vietnamese industrial real estate market ‘attracting investors’
With a series of expanding industrial zones and increasing investment in the full-service infrastructure, industrial real estate is considered a magnet pulling in investors.
Real estate near industrial parks attracts investors
The industrial real estate market in Vietnam is currently of great dynamic and promising context. According to statistics, there are already more than 15 investors participating in industrial real estate development
Citing statistics from the Foreign Investment Agency (Ministry of Planning and Investment), as of the end of July 2023, foreign direct investment (FDI) capital invested in Vietnam reached USD 13.43 billion, with the real estate sector attracting USD 1.53 billion, ranking third among all sectors.
For example, on August 1st, the Nghệ An provincial People’s Committee issued an investment registration certificate for the Aluminium Alloy Production project to Innovation Precision Co., Ltd. (under Shandong Innovation Metal Technology Group) with a total investment of USD 165 million. According to the plan, construction of the factory will commence in August 2023, and it is expected to be completed and operational by October 2024
Citing statistics from the Foreign Investment Agency (Ministry of Planning and Investment), as of the end of July 2023, foreign direct investment (FDI) capital invested in Vietnam reached USD 13.43 billion, with the real estate sector attracting USD 1.53 billion, ranking third among all sectors.
For example, on August 1st, the Nghệ An provincial People’s Committee issued an investment registration certificate for the Aluminium Alloy Production project to Innovation Precision Co., Ltd. (under Shandong Innovation Metal Technology Group) with a total investment of USD 165 million.
According to the plan, construction of the factory will commence in August 2023, and it is expected to be completed and operational by October 2024.
During the promoting conference that supports the Vietnam-Singapore investment cooperation projects, statistics indicated that 3 Vietnam-Singapore Industrial Parks (VSIP) will soon commence, while 4 projects have received investment approvals, and 10 new projects have signed cooperation memorandums for development.
Therefore, it can be seen that the local authorities actively developing industrial real estate. Regarding the prospects of new capital inflow into industrial real estate, especially for green real estate demand, Bruno Jaspaert, CEO of DEEP C Industrial Zones Complex, believes that Vietnam has seen a steady increase in the number of investors over the years, and if this trend continues, there will be no limit to seizing opportunities from new capital flows.
The demand for eco-industrial real estate and sustainable development from foreign investors in Vietnam is expected to continue to rise. Secondary investors are increasingly interested in sustainable development and the use of renewable energy due to the new carbon taxation.
Ms. Trang Lê, Senior Director of Research and Consulting at JLL Vietnam, mentioned that Vietnam now has appropriate warehouse and factory types of properties with qualifications equivalent to other countries in the region, with some projects even integrating eco features.
An interesting statistic is that many real estate projects have adopted green development criteria, particularly in the industrial and manufacturing segment, which applies the highest green standards.
This demonstrates a positive impact on foreign direct investment (FDI) in recent times, not only meeting green development needs but also raising the quality of industrial real estate.
According to Deputy Minister of Planning and Investment, Trần Quốc Phương, in the context of fierce competition for attracting FDI, Vietnam has adopted various strategies and policies to enhance the effectiveness of attracting foreign investment, both domestically and internationally.
Therefore, as follows, from central, sectorial ministries to local authorities, both are implementing regional planning, national sectoral planning, and provincial planning. This presents an opportunity to rearrange and reorganize the development space of economic regions to strongly attract investment with a focus on maximizing potential advantages
