Vietnam is emerging as a destination for many FDI "eagles". This puts industrial real estate businesses in a new race, according to a report from the Vietnam Association of Realtors.

Vietnam is positioned as one of the very potential locations for production expansion and is emerging as a bright spot for logistics and supply chain shifts in the Asia-Pacific region.

According to Nikkei Asia, Apple’s supply chains such as BOE, Quanta, Compal, Goertek, and Foxconn currently have factories in Bac Ninh, Bac Giang and Vinh Phuc industrial zones, and now plan to open and expand factories in Bac Ninh, Nam Dinh, Nghe An and Quang Ninh provinces in the near future.

Recently, the largest-scale business delegation accompanying the Korean president ever visited Vietnam with the expectation of enhancing cooperation in areas such as supply chain, new technology, energy and environment.

Accordingly, major corporations have invested in Vietnam and have plans to expand in the near future: Samsung will increase the investment capital to 20 billion USD, LG will invest another 5 billion USD in Vietnam, SK will step up capital inflow into Vietnam through investments in Masan, Vingroup, etc.

In particular, there was a bright spot in the process of handling administrative procedures and granting investment registration certificates to foreign enterprises from the local government of Quang Ninh province. This will certainly be a highlight to help Quang Ninh continue to score points in the eyes of investors and also a lesson for other localities to study and follow.

Catching up with the above trend, the industrial park real estate market continues to "bright" despite the general difficulties of the real estate market and the decline in global trade.

The report of the Association also emphasizes that the owners of real estate in industrial zones (IZs) in Vietnam are in the race to attract FDI.

Many industrial park investment projects have been approved for investment policies, starting to implement the next stages. However, according to experts, the supply of industrial park land may increase slowly, at least until the end of 2024. For example, the conversion of rubber plantation land to industrial park land faces difficulties due to bidding regulations.

It is expected that in 2023, the South will only have about 1,000 more hectares of industrial parks (in Binh Duong, Dong Nai), the North will have nearly 1,000 more hectares (mainly in Bac Ninh, Hai Duong and Hai Phong). Meanwhile, the remaining available area of ​​enterprises is gradually narrowing.

Therefore, this will be an opportunity for industrial parks with large land banks available for lease when taking advantage of market opportunities, with little competition when the supply is limited.

The report also pointed out that the market is witnessing the emergence of new industrial parks, invested in the direction of modernization and automation, with special emphasis on "green" criteria with measures to reduce CO2 emissions.

In the near future, these standards will become the top selection criteria of investors, especially foreign investors.