Industrial real estate: ‘Not fast, the eagle will fly away’
tranthuy02 31-08-2020, 09:55
Industrial real estate: ‘Not fast, the eagle will fly away’

Opportunities for Vietnam’s real estate industrial park industry is relatively large, but, if not “pick fish sauce”, not fast enough, the eagle will fly away

According to many experts, large demand will be directed to industrial zones in Vietnam when many manufacturers are looking to reduce risks as well as reduce dependence on one country.

Many forecasts also say that Vietnam needs to prepare to welcome the wave of foreign businesses, especially after the news that an Australian corporation plans to pour $ 350 million into the S-shaped country’s logistics industry.

“Currently, Vietnam has a lot of FDI projects and Vietnam partly benefits from the US-China trade war.

Vietnam, along with Malaysia, Indonesia in Southeast Asia and Mexico in the Americas are very fortunate to be in the trend of shifting investment away from China by the US, “said Dang Van Quang, Director of Jll Vietnam at the conference “Real Estate Vietnam 2020 – 2021: Ready for a new cycle”, organized by BizLIVE on August 29.

Director of Jll Vietnam also analyzed further, when shifting investment, US businesses want to find a similar market. Many businesses want to learn to move factories.

However, when the factory relocated there were many complex problems, related to investors’ intentions and other constraints such as the supply system in China, plus the last period due to COVID. -19 so it is difficult to visit the survey.

“We recognize a lot of investors’ attention but the specific signing is not much. We hope that after COVID-19 is controlled, this activity will be accelerated”, Director of Jll Vietnam share.

According to experts, on average, a project takes three years to complete the procedure, even some projects take 4-5 years. Similarly, foreign investment projects in Vietnam also take 2-3 years for the procedures.

Mr. Dang Van Quang noted, “the interest of international investors is there, but they face barriers from law, law enforcement and sub-law documents.

The Indian government has spent about 30 billion USD to support businesses moving to this country. Meanwhile, if Vietnam is not fast, it will lose the opportunity as the Prime Minister said to clear the eagle’s nest, but otherwise quickly the eagle will fly away”.

On the other hand, Vietnam’s land fund for industrial zone development is quite limited. Director Jll Vietnam for example, if you want to expand industrial zones like Bac Ninh, it takes 10 years to complete the procedures for leasing infrastructure.

“The land fund for industrial zone development is the most limited, the land fund with good transport infrastructure is even more limited. In my opinion, Vietnam does not necessarily welcome leading enterprises, welcome appropriate businesses”, Director of Jll Vietnam concludes.

Previously, experts as well as market developers also noted the issue of land fund for industrial zones, especially in the southern provinces of Vietnam. The occupancy rates in Binh Duong, Dong Nai, Long An, Bac Ninh, Hung Yen, Hai Phong, have increased significantly since 2018.

Accordingly, many businesses operating in this field have aggressively expanded their land funds, as in the case of Viglacera planning to participate in bidding as an investor in many industrial parks, with a total area of over 2,000 hectares, or Nam Tam. Uyen also plans to borrow capital to implement the project.

On this basis, expert Rong Viet Securities Joint Stock Company (VDSD) said that the advantage will favor businesses that have land funds in hand and the situation will be more difficult on the other side.

Source: – Translated by