The industrial property market is heating up | Business

Illustrative image (Photo: VNA)

Hanoi (VNA) – from Vietnam industrial real estate market is heating up, driven by an increase in foreign direct investment (FDI) flows.

German Framas Group recently rented a 20,000 m² ready-made warehouse at KTG Industrial Nhon Trach 2 in the southern province of Dong Nai.

Fabian Urban, director in charge of footwear technology at Framas Vietnam, said the reason for choosing Vietnam to open the factory is that the facilities here are superior to those in other places.

Pham Truong Son, head of the board of Da Nang Hi-tech Park and Industrial Zones, said that to shorten the project implementation time, many investors choose to hire ready factories. job. In this local high-tech park, modern and large-scale factory projects are being built for rental. For example, the Long Hau Joint Stock Company’s 30 ha factory project, with a total investment of over VND 1 trillion (USD 43.7 million), was completed and handed over to two Japanese companies.

Doan Duy Hung, General Manager of IIP VIETNAM – the largest industrial real estate portal in Vietnam, said that new-generation industrial zones and clusters that have characteristics related to logistics, warehouses, factories, especially industrial zones urban services, are attractive to investors. Many industrial park investors have paid great attention to service issues.

Savills Hanoi director Matthew Powell said that compared to countries in the region, Vietnam has more favorable conditions with more affordable property prices and many new projects that will increase supply in the future.

Competitive labor cost and improved legal corridor are also among the factors attracting investors to the country, he said.

Powell pointed out that the selection of Vietnam by many famous brands as a strategic destination has helped promote IDE attract and enhance the country’s prestige on the world stage.

He listed the reasons that make industrial real estate in
Vietnam attractive, including prices, a large number of prestigious developers, labor resources, convenient transportation network, easy access to international seaports and airports, and state incentives.

In addition, political stability, abundant investment opportunities and local government support, as well as the country’s administrative reform efforts are also other factors that attract investors to Vietnam rather than China, India or China. in Thailand, according to Powell.

In recent years, many localities have paid much attention to improving investment and licensing procedures. As in the southern province of Long An, many companies can receive investment certificates in one day. Coca-Cola, for example, could receive it after just four hours after filing its case when it invested in a $136 million plant in the Phu An Thanh industrial zone of the southern locality./.