In particular, demand has been growing fast, partially because of the rising trend of relocating production bases from China to Vietnam to avoid negative impact from the US-China trade war.
Besides, the Foreign Investment Agency (FIA) has confirmed the strong FDI wave in recent months. As of April 20, about $5.7 billion worth of FDI capital has been disbursed, up 7.5 percent year-on-year.
Industrial zone is the highlight of domestic real estate market this year.
Some 1,477 projects were licensed with the total registered capital of $7.5 billion, an increase of 28.6 percent over the same period last year.
According to Rong Viet Securities,Vietnam has emerged as an attractive destination for investors in the context of the trade war escalation.
While Thailand is an automobile production center in Asia, Vietnam is the choice of the world’s leading technology groups. Big corporations including Samsung and LG have been present in Vietnam for more than a decade.
All these factors have generated rising demand for production workshops, storehouses and logistics services, thus accelerating the development of the industrial property segment.
While the demand rises, the expansion capability hasn’t increased proportionally because of the limited land fund and complicated licensing procedures.
IZ developers with large land funds such as Kinh Bac Urban Developmetn JSC (KBC), Idico (IDC) and the developers with effective operations such as Nam Tan Uyen IZ JSC (NTC) will have competitive advantages in the long term.
In the Northern region, KBC hopes it can lease 843 hectares of land, mostly in Bac Ninh, Bac Giang and Hai Phong. Viglacera (VGC), which owns 911 hectares of land, will also get big benefits, especially if the trade war escalates, which has prompted global technology corporations to expand production in Vietnam and the network of vendors.
Potential tenants in the Southern region are even more diverse, including investors in heavy industries and chemicals.
The US-China trade war is encouraging enterprises in Taiwan and mainland China, mostly small and medium sized, to relocate their production to the IZs in the South of Vietnam.
For example, Long Hau JSC (LHG) is likely to lease 90 hectares of land and NTC will begin construction of infrastructure items of NTC 3 IZ in Q2.
Insiders said several rubber companies which have large land funds are planning to use a part of land for IZ development. They include Phuoc Hoa Rubber which has 14,734 hectares, Hoa Binh (5,061 hectares), Tay Ninh (7,172 hectares), and Dong Phu (9,340 hectares).
