Take advantage of the "behind-first" advantage

With the advantage of going ahead and attracting investment, up to this point, in the "leading" in industrial development such as Ho Chi Minh City, Hanoi or the southern provinces of Binh Duong, Dong Nai, The northern provinces are Hai Duong, Bac Ninh, Bac Giang..., basically the area of ​​industrial parks (IZs) has been filled and developed stably. That means that the land fund for industrial development is not much. In the current context, it is not easy to expand the IP area and the demand for land rental is still large, so the land rental price is continuously increasing.

An enterprise entering Nghe An to lease business land in the industrial zone said: Because the land fund in the northern industrial zones has been exhausted, in recent years, the land rent has increased rapidly, from about 90-100 USD/m2/year ago. this has increased on average to 150 USD, sometimes even up to 180 USD/m2/year.

Completing telecommunications infrastructure within VSIP Nghe An 1 Industrial Park. Photo: Nguyen Hai

While the industrial centers have run out of space and high rents, in Nghe An in particular and the North Central provinces in general, due to the remaining space and the low rent, it is a viable option for investors. private. Specifically, in Nghe An, according to information from industrial park infrastructure traders, depending on the contract and area and rental period, the price is different, but in general, it is still cheaper than in key industrial areas. other. Through the survey, we learned that the current common land rental price is from 48 to 100 USD/m2/year.

Ho Chi Minh City Business and Entrepreneurs Association at the working trip with Nghe An province shared: Recently, due to space, the land fund for industrial development is not much, so instead of receiving and attracting all As before, large industrial centers such as Ho Chi Minh City must choose, only giving priority to attracting projects with modern equipment and technology, and not encouraging projects using large land funds. , especially projects with technologies that have a great impact on the environment.

The limitations of the above localities are also opportunities for localities like Nghe An. If a cooperative relationship is established, localities can completely share information, connect cooperation, and attract investment in suitable projects. Similarly, the Business Association and the Hanoi Center for Investment, Trade and Tourism Promotion also continuously have linking and connecting activities to attract investment with Nghe An.

Although the land rental price is not a decisive factor in investment or not, recently, with the construction of a separate land price list for the IP and attracting professional infrastructure business investors, Nghe An An has created a competitive advantage to attract investment in industrial zones compared to other provinces. Specifically, nearly 10 years ago, since attracting WHA, VSIP, Hoang Thinh Dat, with synchronous investment infrastructure, Nghe An has emerged as an option for FDI investors whenever they come to Vietnam to explore. looking for investment opportunities.

Mr. Dang Quang Tuan - Head of Natural Resources - Environment Department, Management Board of Southeast Economic Zone

On the side of industrial park infrastructure investors, thanks to the more reasonable calculation of the new land price list for industrial zones, infrastructure investment enterprises are more active in negotiating rents with landlords. secondary investment; at the same time as the basis for considering the decision to expand investment in the next phase.

Nghe An invests in railway overpass at road N2, Tho Loc Industrial Park - VSIP 2 Dien Chau to attract investors in infrastructure business. Photo: Nguyen Hai

With the above advantages and the province’s efforts to attract investment, in the past 2 years, despite being heavily affected by the Covid-19 pandemic, Nghe An has still made a big move in attracting investment. In 2022, for the first time, FDI is the largest in the country with total newly and adjusted capital reaching 961.3 million USD. In the first 8 months of 2023, Nghe An continued to lead 14 provinces and cities in the North Central and South Central Coast regions, ranking 8th in the country with the attraction of 9 foreign direct investment projects with registered capital. signed USD 890 million.

Opportunity for Nghe An industrial real estate to accelerate?

According to experts, the industrial real estate market in a locality is considered to be synchronous and fully including the land area segment in industrial zones and industrial clusters. The IP has a higher rent segment and is for large-scale enterprises; while the industrial cluster has a lower rent and is for small and medium-sized enterprises; regardless of the type of enterprise is FDI or domestic.

One of the advantages for businesses and investors when entering industrial parks or industrial clusters for business and production is that they already have adequate technical infrastructure, including roads, power supply, fire prevention and treatment systems. Wastewater treatment into the environment ... is designed with synchronous investment, businesses only need to install factories and equipment lines to focus on production and business, less need to worry about other issues. When problems arise, there are investors in the business of leasing infrastructure, the Management Board of Southeast Economic Zone and departments, branches and localities to support...

Quynh Luu invested nearly 10 billion VND to build nearly 1 km of the road connecting National Highway 48B to the industrial cluster in Quynh Chau commune to invite investors to do infrastructure business. Photo: Nguyen Hai

However, the relatively high land rental price in the IZ is a major barrier for domestic enterprises, most of which are small and medium-sized. Therefore, instead of renting land in the IZ for investment and business, domestic enterprises often lobby for land acquisition, compensation and ground clearance.

A representative of an enterprise investing in production facilities in Nghi Lam commune, Nghi Loc district said: To implement this plan, the enterprise must initially spend a large amount of money for compensation and site clearance, but it takes a long time. reduce the annual cost of land rental is quite high. In fact, although the rent is lower than some key IPs in the country, at the current price, mainly only FDI enterprises dare to rent land in IPs invested by VSIP, WHA or Hoang Thinh Dat. Intra-provincial enterprises with over 95% of small and medium scale still have difficulty in accessing production and business premises; others have to lease back the area in industrial parks or small industrial clusters invested by the State... This, in the long run, can cause environmental consequences, wastewater or lack of power supply.

The Management Board of Southeast Economic Zone and the investor of VSIP infrastructure business in Nghe An annually coordinate to connect labor supply - demand. Photo: Nguyen Hai

The above fact shows that, in order to perfect the industrial real estate market, on the one hand, Nghe An needs to attract investment in infrastructure development of industrial zones so that large-scale projects can rent land, and at the same time, it must plan, increase land fund to develop small industrial clusters, create conditions for small and medium enterprises to access and lease land for production and business.

In addition, it is necessary to strengthen the bar, inspect and effectively handle projects that are suspended or allocated land but have not been put into use; limiting the situation of "fat hanging, cats starving" when investors who rent land enjoy State incentives but do not invest in infrastructure or rent land, enjoy preferential prices but do not install factories for production, business but for sublease...

A corner of Nam Cam Industrial Park in Southeast Economic Zone. Documentary photo of Nghe An Newspaper

From now to 2025, the land fund for Nghe An real estate market will have an additional 1,500 hectares, of which 1,200 hectares are in industrial zones and about 300 hectares in industrial clusters. With a positive signal of investment attraction, especially FDI investment, in the coming time, Nghe An will upgrade its key connection infrastructure, and actively invest in other social infrastructure, opportunities with the market. Nghe An industrial real estate is getting bigger and bigger.

Nghe An: Improving the investment environment to attract foreign capital flows

Nghe An province has now approved the investment policy of Runergy PV Technology Co., Ltd (Thailand) to produce monocrystalline silicon rods and semiconductor platters. It is known that the project of manufacturing monocrystalline silicon rods and semiconductor discs of Runergy PV Technology Co., Ltd (Thailand) at Hoang Mai I Industrial Park, Hoang Mai town (Nghe An) was approved by Nghe An province. approved the investment policy on June 22, 2023.

Accordingly, this project with a total investment capital of more than 400 million USD is currently in the process of adjusting the investment certificate. The project’s factory has a design capacity of nearly 40,000 tons of silicon rods/year, nearly 30,000 tons of semiconductor wafers/year. Products and services provided include: Silicon bars, semiconductor platters and factory leasing activities.

The project is expected to complete the procedures to be handed over the site; deploying factory construction and procurement of machinery and equipment from June 2023 to October 2023; November 2023 will produce trial and official production of the first phase of the project; By June 2025, the whole project will be put into operation.

The investor of the project is a wholly-owned subsidiary of Jiangsu Runergy New Energy Technology (China); was established in 2013, with headquarters in Yancheng, Jiangsu, China and is one of the leading enterprises in the solar battery manufacturing industry with a staff of more than 4,500 people working in facilities. production and research facilities in Asia and the Americas.

The investment project to produce crystalline semiconductor discs in Nghe An is the first project in the group’s investment plan chain in Vietnam, with subsequent projects that can increase the total investment capital of the group in Vietnam. Vietnam up to 1.2 - 1.4 billion USD.