Vietnam is poised to experience significant growth in its industrial sector, with ambitious plans to establish 221 new industrial zones by 2030, according to the approved planning schemes of 63 localities. This expansion also includes the expansion of 76 existing zones and the adjustment of planning for 22 others.
The recent acceleration in removing legal hurdles for industrial real estate projects is creating a favorable environment for businesses operating within this sector. This development is also attracting investment and boosting the growth prospects of the real estate market, with its impact expected to be more pronounced by 2025.
A pivotal moment occurred in November 2024 when the National Assembly passed amendments to several laws, including the Law on Planning, the Law on Investment, the Law on Investment under Public-Private Partnership (PPP), and the Law on Bidding. Notably, the amended Law on Investment delegates the authority to issue investment certificates for industrial zones to provincial People’s Committees, streamlining the process and accelerating the development of new industrial areas.
 |
| Long Hau 1 Industrial Park in Can Giuoc district, Long An province. (Photo: VNA) |
Experts predict that the streamlined licensing procedures will expedite the establishment of new industrial zones this year. For instance, the Kinh Bac Urban Development Corporation (KBC) has made significant strides in key projects, receiving approval for several large-scale developments, including the 687-hectare Trang Due 3 Industrial Park and the 585-hectare Trang Cat Urban Area. As a result, KBC’s industrial land fund has expanded to 6,402 hectares, representing 5.1% of Vietnam’s total industrial land area.
Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers, emphasizes that industrial real estate remains the market’s standout performer and is expected to lead the overall market recovery.
The allure of industrial real estate is drawing not only established developers like Kinh Bac (KBC), Viglacera (VGC), Becamex (BCM), and Idico (IDC) but also new entrants to the market. The segment’s potential has attracted the attention of companies such as Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land), which has announced its strategy to expand into industrial and logistics real estate in the southern market. DIC Holdings, a member of DIC Corp, has also secured a partnership to act as a general contractor for a 400-hectare infrastructure project in Phu My township, Ba Ria-Vung Tau province.
Thomas Rooney, a senior expert at Savills Hanoi, acknowledges the immense potential within Vietnam’s industrial park projects but notes that most developments follow a traditional model. He emphasizes the importance of converting conventional industrial parks into environmentally friendly zones, which requires significant costs, time, and a supportive legal framework, along with incentive policies and credit support for investors to alleviate initial financial burdens.
To sustain the momentum and ensure continued strong growth in industrial real estate, the expert underscores the necessity of further developing and planning infrastructure and transport systems in a synchronized and efficient manner. Developers and investors must also remain attuned to industry trends to capitalize on emerging opportunities.
Looking ahead, experts predict that the segment’s growth trajectory will be bolstered by the influx of FDI capital into Vietnam, coupled with favorable land rental prices and supportive government policies. The stage is set for Vietnam’s industrial sector to flourish, creating a vibrant environment for businesses and driving economic growth.
Unleashing India’s GatiShakti: A Revolutionary Blueprint for the Third World’s Infrastructure Renaissance
On the 12th of October, 2024, India’s PM GatiShakti National Master Plan celebrated its third year since its inception in 2021. To mark this occasion, the Indian government revealed significant progress and advancements in the plan’s execution.
“French-Thai Amity: Strengthening Bonds, Building Futures”
“With a strong belief in the potential for diverse and practical cooperation, Nguyen Tien Thanh, the Chairman of the Thai Binh People’s Council, foresees a promising future for collaboration with French partners, especially those from Nevers. This optimism stems from a shared vision of mutual benefit and a commitment to exploring new avenues of partnership.”
Global Investors Flock to Vibrant Ho Chi Minh City
The Chairman of Ho Chi Minh City, Vietnam, extended a warm invitation to Australian investors, encouraging them to explore the vibrant investment opportunities that the city has to offer. With a dynamic economy and a thriving business environment, the city presents a lucrative prospect for foreign investors seeking to expand their horizons.
Binh Phuoc Province invites investment from EU companies
The “Business Connection Forum – Industry, Trade, and High-tech Agriculture EuroCham – Binh Phuoc Province 2024” holds significant importance as it provides a platform for Binh Phuoc to showcase and enhance its presence, enabling both local and international investors to explore the province’s pivotal projects.
Vinh Long showcases 12 investment opportunities for Indian enterprises
On March 5, the Vinh Long province’s People’s Committee partnered with the Indian Consulate General in Ho Chi Minh City to enhance collaboration between Indian enterprises and Vinh Long.
