• An Giang
  • Binh Duong
  • Binh Phuoc
  • Binh Thuan
  • Binh Dinh
  • Bac Lieu
  • Bac Giang
  • Bac Kan
  • Bac Ninh
  • Ben Tre
  • Cao Bang
  • Ca Mau
  • Can Tho
  • Dien Bien
  • Da Nang
  • Da Lat
  • Dak Lak
  • Dak Nong
  • Dong Nai
  • Dong Thap
  • Gia Lai
  • Ha Noi
  • Ho Chi Minh
  • Ha Giang
  • Ha Nam
  • Ha Tinh
  • Hoa Binh
  • Hung Yen
  • Hai Duong
  • Hai Phong
  • Hau Giang
  • Khanh Hoa
  • Kien Giang
  • Kon Tum
  • Lai Chau
  • Long An
  • Lao Cai
  • Lam Dong
  • Lang Son
  • Nam Dinh
  • Nghe An
  • Ninh Binh
  • Ninh Thuan
  • Phu Tho
  • Phu Yen
  • Quang Binh
  • Quang Nam
  • Quang Ngai
  • Quang Ninh
  • Quang Tri
  • Soc Trang
  • Son La
  • Thanh Hoa
  • Thai Binh
  • Thai Nguyen
  • Thua Thien Hue
  • Tien Giang
  • Tra Vinh
  • Tuyen Quang
  • Tay Ninh
  • Vinh Long
  • Vinh Phuc
  • Vung Tau
  • Yen Bai

Industrial real estate remains a bright spot in FDI attraction next year

VGP - Viet Nam’s real estate market is going through the last days of 2019 with many positive signs recorded in the segment of industrial real estate.

December 27, 2019 2:45 PM GMT+7

Industrial real estate a bright spot in 2020

Industrial real estate attracts FDI capital

According to a report by the Foreign Investment Agency (Ministry of Planning and Investment), the capital inflow into the real estate market has been constantly growing over recent times, making it a segment with a large proportion in foreign direct investment (FDI) attraction.

In particular, the FDI inflow into the industrial real estate has increased tenfold during the past decade.

Specifically, in the first 11 months of 2019, the total newly registered, adjusted capital, capital contributed and shares purchased by foreign investors reached US$31.8 billion.

The manufacturing industry was the largest recipient of FDI with US$21.56 billion, accounting for 67.8% of the total registered investment capital. It was followed by the real estate sector with US$3.31 billion, taking up 10.4% of the total, then came the retail and wholesale sectors.

In addition, the number of foreign delegations exploring investment opportunities in Viet Nam surged by about 30% compared to the same period in 2018. The partners mainly came from Japan, the Republic of Korea, China, Hong Kong (China) and Singapore.

Industrial real estate a bright spot in 2020

According to economic experts, the industrial real estate segment will be the “hottest” area in 2020 and is considered to have many advantages, as Viet Nam has been participating in a number of new-generation free trade agreements which were signed in 2019.

Especially, Viet Nam have the chance to attract FDI from the agreements, in which the Viet Nam-EU Free Trade Agreement (EVFTA) will strongly boost the industrial and export sectors in Viet Nam through the elimination of 99% of tariff lines on goods. This also means that Viet Nam's industrial parks and clusters are drawing increasing attention from investors, thereby boosting the demand for industrial real estate in the country.

To continue attracting quality FDI to create momentum for industrial real estate to develop in a sustainable and effective manner, experts stressed the need to change the approach in industrial real estate investment in the direction of enhancing links between industrial parks and logistics service infrastructure and the startup ecosystem, towards sustainable development in industrial parks.

Particularly, from 2018, the Government’s new policies continue to attract high-tech and environmentally friendly projects, in addition to encouraging investment in renewable energy, high-tech agriculture and smart cities, advocating the participation in the global value chain on the basis of Industry 4.0 and the FDI attraction strategy, and promoting joint ventures between domestic and foreign enterprises. Developing solutions to balance FDI and allowing investment in other provinces have opened up numerous opportunities for the development of industrial zones across the country.

Currently, Viet Nam’s industrial real estate is building a strong belief in the eyes of international investors concerning its growth. The strong growth of this market has been thanks to Viet Nam’s orientations in developing the export-oriented economy. According to the development plan until 2020, the total land area for industrial development will see a twofold expansion./.

By Vien Nhu