2021 is a year marking the boom of the Northern market with high occupancy rates and attracting many businesses. In which, Quang Ninh, Bac Ninh, Hung Yen, Hai Phong and Hanoi are the leading provinces in this market.
According to aggregated data of the Competition and Consumer Protection Department (VCCA), up to now, the Northern region has about 63.5 thousand hectares of industrial land planned with 238 zones. industrial clusters have been operating and are under construction.
The explosive growth of the Northern market is considered an inevitable growth because this is an area where the provinces and cities attracting the top FDI in the country such as Bac Giang, Quang Ninh, Bac Ninh, etc. .
Specifically, based on market share data, the current market is mainly concentrated in the Northeast region, notably Quang Ninh province with an area of 11.3 thousand hectares, equivalent to 11.3 thousand hectares. with 18% of the whole region.
This province together with Bac Ninh, Hung Yen, Hai Phong and Hanoi are the 5 provinces with the highest concentration, accounting for more than 50% of the total market share. These are localities near/coastal or in the central area, with developed traffic routes, which are convenient for the transportation of materials and goods in the production process. Therefore, these localities are focused on development, have higher demand and attract more businesses.
Industrial real estate market share in the North by province in 2020. (Source: VCCA).
1. Considering the size of the planned area, Hai Ha Industrial Park is currently the largest industrial area in the region, with 4,988 hectares, equivalent to 7.91% of the market share. VCCA believes that in the future, this will likely be a key industrial area in Quang Ninh due to its huge supply, meeting high demand in the market.
2. In second place is Dam Nha Mac industrial park, also located in Quang Ninh province with an area of 3,710 hectares, equivalent to 5.88% market share.
3. Followed by Ly Thuong Kiet industrial park in Hung Yen province with an area of 1,988 hectares.
The remaining industrial parks have a smaller market share of only about 1-2%, but they are also large industrial parks with a large scale from 750 to 1,700
Market share of industrial zones in the North based on the scale of 2020. (Source: VCCA).
Based on the CR (Concentration Ratio, showing the relative size of the group of enterprises with the largest market share compared to the total market volume), VCCA assesses that industrial parks are having a high degree of competition. and harsh.
The CR1 index is at 7.91%, the CR3 index (the top three industrial zones are Hai Ha, Dam Nha Mac and Ly Thuong Kiet) is at 16.94%, nearly three times lower than the 65% threshold. .
In addition, the CR5 index (including Hai Ha, Dam Nha Mac, Ly Thuong Kiet, Deep C and Nam Dinh Vu) is only approximately 22%.
These indicators show that currently in the Northern real estate market, there is no industrial park with a dominant position in terms of area size in the market. In addition, this area is facing fierce competition, the number of industrial parks is large and the area is similar, so the market share is evenly distributed in the market.
Also according to VCCA's report, the HHI index is also at 164, nearly 10 times smaller than the 1,800 threshold - the threshold indicating a high concentration of the market. This shows exactly that the North market has a very low concentration, all industrial parks have a small market share and almost no industrial parks have an outstanding market share or increase the level of market share. market concentration.
