The outbreak of the 4th Covid wave caused the southern industrial real estate market to fall into a quiet state during the third quarter of 2021. But in the long term, the market still has a positive outlook and at the beginning of this fourth quarter, many investors have prepared the supply for a new boom period.
Southern industrial zones are preparing for a new boom period. Photo: Le Toan
If the northern industrial real estate market in the third quarter of 2021 still maintains its growth momentum when continuously receiving new supply and increasing rents, the southern area is an opposite image. The reason is that the southern provinces are the epicenter of the fourth outbreak, most of the industrial parks have suspended operations to prevent the epidemic, causing investment attraction in this area to be delayed.
JLL Vietnam's Southern Industrial Real Estate Market Report said that in the months of July, August and September 2021, the market was almost "frozen" when there were no notable transactions in the whole segment. lease industrial land and ready-built factories.
The price of industrial land slowed down and remained at 114 USD/m2 according to the lease term, while the price of ready-built factory for lease stayed flat, anchored at 4.5 USD/m2 during the lockdown period to prevent and control the epidemic. .
Although the long-term social distancing has raised concerns in the foreign business community, according to Ms. Trang Bui, Senior Director of JLL's Marketing Department, Vietnam is still considered an attractive destination. led by advantages in human resources, diverse free trade agreements and government commitments in infrastructure development.
“If the pandemic is brought under control soon, Vietnam will continue to benefit from changes in the global supply chain,” emphasized Ms. Trang.
The social distancing causes many difficulties, but the positive move recorded in the past time is that the investors of industrial parks and the local authorities are still actively preparing a large enough land fund for a growth cycle. new. Besides Binh Duong and Dong Nai, which are considered the industrial capitals of the South, Long An has emerged as a potential destination when many investors have chosen this place to establish industrial parks and develop new industries. logistics project.
Recently, right after the social distance was eased, the People's Committee of Long An province held a ceremony to award the decision to establish Nam Tan Tap Industrial Park. The project has a land use scale of 244 hectares in Tan Tap commune, Can Giuoc district, invested by Saigontel Long An Co., Ltd. Total project investment capital is more than 2,590 billion VND.
In addition to this project, Long An province also granted investment registration certificates to 11 other projects in industrial parks in the province with a registered investment capital of more than 68.3 million USD and 4,425 billion VND. Currently, the whole province of Long An has nearly 13,500 businesses with a total registered capital of nearly 349,000 billion VND, of which 2,113 domestic investment projects are licensed with a registered capital of more than 251,614 billion VND and 1,124 FDI projects with registered capital. is $9,334 million.
Along with Long An, industrial parks in Ba Ria - Vung Tau province are also bright spots to attract investment. In which, Phu My town and Chau Duc district are two localities with advantages near Cai Mep port to become a key industrial park development when accounting for about 70% of the industrial land area of the province.
In the period of 2021-2025, Ba Ria - Vung Tau identifies seaport development and logistics services as the key economic sectors to support the development of other industries, trade and services of the province. In which, it is expected to attract 150 new FDI projects with a total registered investment capital of about 3.2 billion USD and 185 domestic investment projects with a total registered investment capital of about 100,000 billion VND.
It is known that Quantum Group (USA) is expected to invest in Vietnam about 20-30 billion USD, of which many projects are implemented in Ba Ria - Vung Tau. Specifically, Quantum focuses on investing in infrastructure investment projects with a long-term vision such as Long Son port (including a gas port to supply industrial parks and households later), including: Long Son Power Plant (worth about 5 billion USD)…
New opportunities for industrial park investors
In fact, the difficulties caused by the implementation of the distance have caused many concerns to industrial real estate developers when most of the workshops and factories had to temporarily suspend operations.
However, in the view of Mr. Ha Van Thien, Deputy General Director of Tran Anh Group, it is only a short-term difficulty, while industrial real estate investment must look at the long-term, put faith in the potential, long-term growth engine of the market. Mr. Thien said that Tran Anh Group has prepared to welcome foreign capital waiting to pour into Vietnam after the gap.
“We are speeding up the items in the Tran Anh - Tan Phu Industrial Park project (Long An). This is the first time Tran Anh Group has invested in industrial real estate and Tran Anh - Tan Phu is also the first project in this field, so the plan to welcome investors, especially foreign investors, is approved. prepared very carefully”, Mr. Thien said and further analyzed, green industrial real estate will lead the market and industrial zones in this segment will be absorbed very quickly.
“Currently, groups of industries such as machinery and equipment (parts, auto parts), electronic equipment, and apparel... are in greater demand than other industries. The group of tenants is still mainly from Korea, the US, Singapore, and Japan", Mr. Thien added.
Sharing the same view, Mr. Nguyen Manh Ha, Vice President of the Vietnam Real Estate Association, said that with the new orientations of the Government, the industrial real estate market is focusing more on attracting real estate enterprises. high value production or new type of industrial real estate. In fact, Vietnam's industrial market is transitioning from low-value industries (using low-skilled workers and large numbers of workers) to high-value industries (using high-skilled workers). ability, higher level).
“In the past, textiles and furniture were low-value-added manufacturing industries that were focused on. According to the new direction, Vietnam is targeting high-tech equipment manufacturing industries, research facilities, data centers or industrial cold storage," Ha said.
According to John Campbell, Head of Industrial Real Estate, Savills Vietnam, the shift to attracting high-value manufacturing sectors will bring more opportunities and a more positive future for the real estate sector. industry, because when real estate rental costs increase, the number of businesses in manufacturing industries with low profit margins will decrease. Large leather, footwear and fashion factories with a scale of 10,000 workers will gradually move to further areas where costs are lower, perhaps even to neighboring countries such as Cambodia or Myanmar.
“It can be seen that Vietnamese industrial real estate developers are focusing more on attracting high-value manufacturers, such as electronic components or automobiles from Europe and the US. ” commented Mr. John Campbell.
A typical example in the effort to attract high-value industries is in the Northern key economic region with electronics corporations such as Samsung, LG, Intel..., or car manufacturers such as Honda, Toyota , BMW… and more recently Vinfast.
“The presence of large corporations both at home and abroad is a lever for the development of the industrial real estate market, when suppliers of spare parts and raw materials often have a need to rent factories with high prices. large area of about 1,000-2,000 square meters near these top producers,” said John Campbell.
Theo Trọng Tín/ Đầu tư Bất Động Sản
