Illustrative image. (Source: VNA)
The forum is organized by the Central Institute for Economic Management (CIEM) together with the Vietnam National Real Estate Association (VNREA) and Thuong Gia (Merchant) Magazine.
The industrial real estate market – which includes industrial land, ready-built factories, and warehouses and logistics – is expected to develop strongly in the time ahead, according to the organising board. This segment has gathered strong attraction from foreign investors, especially in the context of the US-China trade war.
Vietnam’s more recent policies, such as strategies to restructure the industry or new legal frameworks on the management of industrial parks and economic zones, have opened up numerous development opportunities for the industrial real estate sector and advantages for private businesses and investors.
Vietnam industrial real estate is possessing great opportunities for a major breakthrough. (Photo: batdongsancongnghiep.net)
Benefiting from its strategic location, Vietnam is having the upper hand amidst the movement of companies shifting from China to Vietnam. Experts have predicted that Vietnam will shift from a labour-intensive to a capital-intensive market.
The increasing flow of foreign direct investment (FDI) along with the shift in the value chain will make industrial real estate a focal point in the market. Besides, Vietnam’s tax incentives, including reduced corporate income tax, import tax, personal tax, and lower costs of land rental, factories, technical materials, are critical leverage in attracting foreign investors.
It is forecasted that Vietnam will have around 500 industrial parks by 2020, which requires around 500,000 ha of land. Therefore, the opportunity to own land for industrial estate penetration and development is huge for both existing and future investors.
In the development of industrial property, logistics is one of the most influential variables. Experts believe that the logistics market will thrive within the next five to ten years. By 2025, Vietnam e-commerce market is anticipated to reach the US $8 billion figure.
Thus, early investment in infrastructure will set logistics firms up for a bigger piece of the pie in the future. This is an opportunity that needs to be immediately captured for either domestic or foreign investors who are intrigued by Vietnam industrial estate.
At the Forum, speakers will present in-depth reports on the impact of the current context and policies, as well as the methods to make the most out of the existing advantages, in further developing private businesses and the market as a whole. Thereby, helping domestic and foreign investors access information on land planning and investment incentives in each locality.
Networking activities between provincial leaders and potential investors are also coordinated to promote investment opportunites in their local’s industrial parks.
The Forum is a great chance for the provincial People’s Committees to promote their attractive investment policies; for primary investors to have access to new land fund and market already-built industrial parks, improving occupancy rate; and for secondary investors to select the locality and the industrial parks to invest and expand business activites with the highest efficiency.
