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Real estate industrial zone 2020 - View aspect
Date: 8/3/2020 9:40:22 AM
The industrial real estate industry is being driven by many positive macro factors ...

In case that the US-China trade tensions return, the National Assembly’s official approval of EVFTA in the last session, along with the "catalyst" COVID-19 is Positive factors, which help make Vietnam become a bright spot in attracting FDI. 

This is an important driving force supporting the recovery of the domestic economy, the stock market, as well as the group of enterprises that directly benefit such as logistics and industrial park real estate.

For industrial park real estate, it is saw some positive signs when according to the first quarter data of the Ministry of Planning and Investment, attracting investment capital in export-processing zones to 86, 04% over the same period in 2019, reaching 117.76 million USD.

In addition, JLL Vietnam’s research also shows that the demand for land lease in industrial zones in the first months of the year still stands at a high level, with the occupancy rate in the Northern region increasing by about 2% compared to the fourth quarter. / 2019, reaching 72% at the end of the first quarter of 2020, while the average production price of land is 99 USD / m2 / lease cycle (up 6.5% over the same period last year).

it is stated that, in the short term, the COVID-19 pandemic has and will slow down FDI inflows in 2020. The total registered FDI capital in the first 6 months was US $ 15.7 billion, down 15.1% over the same period. period of 2019. Of which, newly registered FDI capital reached US $ 8.4 billion, up 13.5% over the same period last year. However, excluding the LNG gas project in Bac Lieu with a total investment of US $ 4 billion in January, the newly registered investment capital decreased by 40.5% compared to the same period in 2019.

Disbursed FDI reached US $ 3.85 billion, down 6.6% compared to the first 6 months of 2019. The decrease in investment scale of projects compared to 2019 along with restrictions on travel between countries. partly reflects the impact of COVID-19 on the new investment decision / project expansion or the negotiation process of foreign investors.

However, experts said that the impact of the disease in the third quarter will be reduced compared to the second quarter when Vietnam has well controlled the disease and allowed some routes to transport foreign experts (from key partners. like Korea and Japan) to Vietnam.

Regarding the medium-term prospect, Vietnam’s industrial park real estate industry can benefit from free trade agreements (FTAs) signed and the movement of companies away from China. Accordingly, the demand for industrial park land and ready-built factories will increase. In addition, promoting public investment will increase connectivity among regions. Industrial zones in big cities and provinces are quickly filled, so the market tends to expand to other provinces such as Ba Ria-Vung Tau, Hai Duong and Bac Giang.

Investment opportunities can be considered after the market is more stable, such as VGC and KBC. These are the two enterprises that own commercial land fund with the area of ​​1,182 hectares and 952 hectares respectively. Land funds of KBC and VGC are concentrated in Bac Ninh, Bac Giang and Hai Phong, two provinces with good location and good infrastructure connection. Many sales contracts were signed in 2019 to be able to account profit in 2020.

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