THE THRUST OF URBAN REAL ESTATE SUPPORTING INDUSTRIAL PARK

In the past two years, the Covid-19 epidemic has had a lot of impact on the economy in general and the real estate market in particular, but in that quiet real situation, there is still a rare bright spot coming from the industrial real estate segmentation.

According to Mr. John Campbell, Manager of Savills Vietnam's industrial real estate division, Vietnam is currently one of the strongest manufacturing and logistics markets in the world thanks to its stable politics, favorable business environment, suitable geographical location, abundant workforce, dynamic.

"In the short - term to medium - term, we are still witnessing a lot of major industrial investment in Vietnam," Mr. John Campbell said.

Top Glove Factory is constructed by AZB Joint Stock Company as General Contractor

Data of the Ministry of Planning and Investment recorded that as of August 20^th, 2021, foreign investment projects disbursed US$11.58 billion, an increase of 2% over the same period in 2020. The complicated epidemic in August caused some factories to stop or reduce their operational capacity, which in August decreased by 12.2% compared to the same period in 2020 and decreased by 14.3% compared to the previous month. However, total of the first 8 months of this year still increased slightly.

Jason Furniture furniture factory project is constructed by AZB Joint Stock Company

The market also received many large investments in the first half of the year, for example in the North, Jinko Solar Hong Kong company invested nearly 500 million USD in Song Khoai Industrial Park (Quang Yen, Quang Ninh); LG Display increased its investment in Hai Phong to US$1.4 billion in August 2021, it leads to the increase of LG's total investment in Hai Phong to US$4.65 billion; The research and manufacturing complex serving the automotive and electronics industry with a total investment of hundreds of millions dollars is planning to invest in Bim Son (Thanh Hoa).

Minh Dư – Canh Vinh poultry breeding with an area of 490 000 m2 is being constructed by AZB Joint Stock Company

The physiological needs for industrial parks

According to experts, the strong development of the industry also shows many challenges such as labor shortages, limiting infrastructure conditions and supporting services for industrial parks. In order for this sector to develop sustainably, it is necessary to increase the supply as well as the quality of labor, develop in parallel these supporting services, ensure the quality of worker’s life in the industrial park.

Currently, each industrial park has thousands of workers from workers to high-end domestic and foreign experts who are living and working there, but not all industrial parks are planned to have an area for supporting services. Therefore, it is necessary to develop supporting services, ensuring the quality of life for workers, which requires the formation of industrial auxiliary cities, contributing to solving the problem of worker housing and the international expert community. Accordingly, a closed industrial park will have full social infrastructure such as residence, commercial service area, amusement park, school, hospital...

In China, Malaysia, Indonesia, Thailand..., high-quality industrial parks often do well in the overall planning of the project, ensuring the industrial park harmoniously integrates the elements of housing, retail, education and health care for all subjects.

AZB Company hands over Sincetech factory on schedule to Chinese investor

In Vietnam, in the long term, high-quality industrial parks will take an advantage of great growth. The combination of housing in the industrial park not only helps workers have a place to rest but also provides retail, educational and entertainment facilities, serving the diverse needs of workers and professionals and tenants. From there, the industrial park project will create investment attraction, especially for businesses operating in the high-value industry sector.

Many localities are assessed as great potential industrial development including: Bac Giang, Hung Yen, Quang Ninh, Hai Phong, Thanh Hoa ... In the northern key economic region, Bac Giang is an outstanding attractive location for production investment as well as logistics. In addition, investors also gradually changed their attention to other areas such as Hung Yen, Hai Duong, Ninh Binh, Thanh Hoa, Nghe An...

In the southern region, Long An is currently leading the way in attracting investors with a total registered foreign investment of over US$3.6 billion, accounting for 18.9% of the total registered investment capital, including a power project accounting to US$3.1 billion. Because of the high occupancy rate and overcrowding in industrial projects in Binh Duong and Dong Nai provinces, many investors have chosen Long An to be a distribution centers and logistics projects. In addition, some industrial projects are in a good operation in Ba Ria Vung Tau such as Phu My Industrial Park ...  is also a attractive destination for investors.