Upon hearing that the big companies are about to come, the industrial park land has doubled the price

According to Department of Management of Economic Zones - Ministry of Planning and Investment, by the end of May, there were 561 industrial parks nationwide, including industrial parks in the approved general planning for construction of economic zones with a total area of ​​about 201,000 ha (accounting for 0.6% of the total area of ​​the country).

This includes 374 established areas, with an area of ​​about 114,400 ha (accounting for 56.9% of the total planned area) and 259 un-established zones, with an area of ​​about 86,600 ha (including 55,800 ha of 187 industrial parks). There are businesses in the planning but the whole area has not been established and 30,800 ha of 72 newly established zones).

After the Covid-19 pandemic, the industrial real estate market saw new changes, still recording growth. In particular, industrial land and ready-built factories are interested by many investors. However, experts say that Vietnam's industrial real estate still faces many barriers.

According to the real estate market in Vietnam, the industrial park land price has increased by about 20-30%. If this situation continues, the attraction of foreign investment will be difficult. Meanwhile, the infrastructure does not correspond to the price increase. The sluggish infrastructure makes potential investors start looking for alternatives.
The Director of the Foreign Investment Department (MPI), Mr. Do Nhat Hoang, also said that the price of industrial parkland is rising too high. "Before about USD 100 saw high, yesterday someone said 150-200 USD / m2" - Mr. Hoang said that this affects the absorption capacity of industrial parks. According to Mr. Hoang, would like to invite " If land comes, then there must be available land resources.

According to Ms. Pham Ngoc Thien Thanh - Deputy Director of Research and Consultancy Department, CBRE Vietnam, it is expected that by the end of 2020, the total supply of ready-built factories and warehouses in the Northern region will reach nearly 2 million m2 of floor space. In the South, the total area of ​​ready-built factories will reach nearly 2.7 million m2 (an increase of 28.2%). After the pandemic is under control, the average rental price of ready-built warehouses is expected to increase by 4-11% over the same period.

The game is only for "The Big Companies"?

The potential is assessed, but the industrial real estate segment also has many barriers for small investors. Mr. Le Trong Hieu assessed that investing in real estate in industrial parks requires huge capital for land compensation and infrastructure construction. This is not a game for all businesses but only for large investors. Individual developers can benefit indirectly from this trend in the housing segment for professionals next to industrial zones.

Breaking barriers in the process of welcoming big investors

To be able to develop quickly and sustainably, especially to catch the attraction of "clean" and quality FDI capital in the new context, promote the restructuring of industrial parks and developing new industrial parks in association with the planning of houses and public works for workers' life; reviewing the planning and giving priority to the development of industrial real estate in key economic areas where conditions permit.

Regarding the orientation of industrial park development, it is necessary to develop in a number and scale to ensure sustainability, comply with the principle of promoting local strengths, creating conditions for linking regional economic development, industrial clusters, not evenly distributed according to administrative boundaries.

Besides, it is necessary to form a core industrial park system with the role of leading the development of national industries, developing the system of small and medium-sized industrial parks, facilitating industrial development. in rural and mountainous areas. Diversifying methods of investment cooperation to develop industrial park infrastructure; encourage the mobilization of private resources in constructing and developing of industrial parks.

The trend of workshop 4.0 will continue to develop strongly in the coming time. Currently, some businesses are implementing workshop 4.0. Accordingly, customers only need to sit remotely using technology to visit and rent factories. Using technology will help better connect tenants and developers.