Industrial property segment sees rising FDI despite new COVID-19 outbreak

Despite a new outbreak of COVID-19 in Vietnam, the industrial property segment saw positive signs with new industrial zones established and key industrial projects beginning operations, according to a report by Savills Vietnam.

Industrial property segment sees rising FDI despite new COVID-19 outbreak hinh anh 1

Illustrative image (Photo: VNA)

Despite a new outbreak of COVID-19 in Vietnam, the industrial property segment saw positive signs with new industrial zones established and key industrial projects beginning operations, according to a report by Savills Vietnam.

This year has witnessed new M&A deals and improvement in industrial land supply. The largest manufacturing projects in the first half of 2021 came from Hong Kong (China) and Singaporean investors that targeted northern Quang Ninh and Bac Giang provinces.

Vietnam’s FDI inflows rose by 3.8 percent year-on-year to 10.5 billion USD in the first seven months of 2021, with processing and manufacturing taking the lead, raking in 7.9 billion USD, or 47.2 percent of the total, data from the Ministry of Planning and Investment showed. The real estate came third with registered FDI of 1.16 billion USD.

“By region, the North received the majority of newly registered manufacturing investments with a substantial 1.97 billion USD, representing a 64 percent share,” said John Campbell, Manager of Savills Vietnam’s Industrial Services. The South followed with 728 million USD (23 percent), while the Central region attracted 395 million USD (13 percent).

In terms of provinces, Bac Giang received the highest amount of newly registered manufacturing capital with 589 million USD, closely followed by Quang Ninh with 569 million USD, and Bac Ninh with 222 million USD. Representing the South, Binh Duong came in fourth with 208 million USD.

For foreign investors, Hong Kong invested the highest amount of manufacturing FDI during the period with over 852 million USD, accounting for a 27 percent market share. Singapore was in the second place with 655 million USD (21 percent), followed by China with 549 million USD (18 percent), and the Republic of Korea with 330 million USD (11 percent).

John said the largest manufacturing projects in the first half of the year were from Jinko Solar and Fukang Technology from Hong Kong and Singapore investing 498 million USD and 270 million USD in Quang Ninh and Bac Giang, respectively.

Regarding new projects, Logos Property’s 81,000-sq.m project in the Vietnam-Singapore Industrial Park (VSIP) Bac Ninh 1 is expected to begin operation in the fourth quarter of 2021. New player in the market, KCN Vietnam Group JSC, acquired a significant 250-hectare land plot with an investment of 300 million USD, aiming to develop premium, sustainable factories and warehouses for rent in Vietnam with a national portfolio pning across Bac Giang, Hai Phong, Hai Duong, Dong Nai and Long An.

He also noted that various new M&A deals have been inked this year. Boustead Projects Co. Ltd., for example, singed an options agreement for the proposed acquisition of 49 percent stake in KTG & Boustead Industrial Logistics JSC. If successful, the partnership will consist of 13 real estate seed assets amounting to 141 million USD in gross asset value covering about 840,000 sq.m of land and about 550,000 sq.m of gross leasable area, he added.

ESR Cayman Limited, the largest Asia-Pacific-focused logistics real estate platform, and BW Industrial Development JSC (BW), the leading logistics and industrial real estate developer and operator in Vietnam, have entered into a joint venture to develop 240,000 sq.m in My Phuoc 4 Industrial Park near Ho Chi Minh City. The partnership marks ESR’s entry into Vietnam, expanding the group’s Asia-Pacific footprint in the high-growth Southeast Asia region./.

Source: VNA
en.vietnamplus.vn

Related News

Binh Duong Customs Department accompanies and supports businesses to comply with the law

Binh Duong Customs Department accompanies and supports businesses to comply with the law

VCN - Thanks to many practical solutions, the pilot program to support and encourage businesses to voluntarily comply with customs laws at Binh Duong Customs Department is increasingly effective, highly recognized and evaluated by the business community
Vietnam - The choice of high-tech investors

Vietnam - The choice of high-tech investors

VCN - Many international organizations say that Vietnam has improved in attracting foreign investment (FDI) and is facing a huge opportunity to "attract capital" in the high-tech sector, especially the industrial sector, semiconductor chip technology.
2024 is a new opportunity to increase quantity and quality in attracting FDI

2024 is a new opportunity to increase quantity and quality in attracting FDI

VCN - The flow of foreign direct investment (FDI) into Vietnam will increase sharply in 2023, so according to Mr. Nguyen Van Toan (pictured), Vice Chairman of the Association of Foreign Investment Enterprises (VAFIE), this has created a favorable premise for Vietnam's FDI attraction in 2024.
Foreign direct investment enterprises gain confidence and momentum from improved business environment

Foreign direct investment enterprises gain confidence and momentum from improved business environment

VCN - For foreign investors and foreign enterprises operating in Vietnam, the business environment and administrative reforms are crucial factors in deciding to continue investment and expand operations.

Latest News

Footwear exports see promising signals

Footwear exports see promising signals

With orders secured for the second quarter, activities are in full swing in many leather and footwear production plants, bringing about the hope for a year of buoyant exports.
Spending over US$11 billion to import one group of commodities in less than two months

Spending over US$11 billion to import one group of commodities in less than two months

VCN - By the end of February, Vietnam had spent US$11.34 billion to import computers, electronic products and components.
Big opportunities for rice exports in 2024

Big opportunities for rice exports in 2024

Positive prospects are forecast for Vietnam’s rice export in 2024, with bright signs in both market and price.
Vietnam-Australia trade ties expected to grow further

Vietnam-Australia trade ties expected to grow further

Vietnamese Prime Minister Pham Minh Chinh’s official visit to Australia is expected to create new momentum for the bilateral relations, including their trade ties.

More News

Many opportunities to develop the semiconductor industry in the Southeast region

Many opportunities to develop the semiconductor industry in the Southeast region

VCN - According to foreign investors, Vietnam is a particularly attractive market for the cooperation and development of the semiconductor industry. In particular, the Southeast region of Vietnam has a lot of potential to develop the semiconductor chip industry.
Many real estate businesses face difficulties of cash flow

Many real estate businesses face difficulties of cash flow

VCN - Although many policies to overcome difficulties have been put forward by the Government, ministries and branches but many real estate businesses face the situation of being "thirsty for money". Finding solutions to unlock capital sources for the real estate market to promote recovery and development is essential.
Deep processing increases agricultural product export value: experts

Deep processing increases agricultural product export value: experts

The current proportion of processed pepper products for export stands at a mere 30%, indicating the need for a significant improvement.
Shipping companies are currently charging about ten types of surcharges for goods at seaports

Shipping companies are currently charging about ten types of surcharges for goods at seaports

VCN - The Vietnam Ship Agents, Brokers, and Maritime Services Providers Association (Visaba) has recently expressed concerns that a series of fees and surcharges are unilaterally determined by foreign shipping lines without agreement with customers.
Enterprises expect to "take off" in 2024

Enterprises expect to "take off" in 2024

VCN - After a period of sluggish business, even continuous decline, many companies have seen optimistic signals in 2024 and have outlined bold plans to quickly return to a growth trajectory.
Electronic products are the driving force for export growth

Electronic products are the driving force for export growth

VCN - The export growth momentum in early 2024 is assessed to have a major contribution from all types of phones and components.
Answering many questions for Korean businesses at 2024 tax and customs policy dialogue conference

Answering many questions for Korean businesses at 2024 tax and customs policy dialogue conference

VCN - At the Dialogue Conference with Korean businesses on tax and customs policies and administrative procedures in 2023-2024 organized by the Ministry of Finance on the afternoon of February 29, representatives of leaders of units under the Ministry Finance, General Department of Taxation, and General Department of Customs directly answered in detail questions of Korean businesses related to the field of tax and customs.
Reconfigure the global cashew supply chain to prevent disruptions

Reconfigure the global cashew supply chain to prevent disruptions

VCN - On February 27th, the 13th Vietnam International Cashew Conference officially opened in Dong Hoi City, Quang Binh Province. This event was part of Vietnam's National trade promotion program, organized in collaboration with the Vietnam Cashew Association (VINACAS) and the Ministry of Industry and Trade of Vietnam.
Durian emerging as "golden fruit" among Vietnam"s exports

Durian emerging as "golden fruit" among Vietnam"s exports

Vietnam is striving to further assert its durian export position and join the billion-dollar export industry with the current advantages in hand, coupled with efforts to better the fruit quality. The country is working hard to tap the potential and expand global reach for the sector.
Read More

Your care

Latest Most read
Footwear exports see promising signals

Footwear exports see promising signals

With orders secured for the second quarter, activities are in full swing in many leather and footwear production plants, bringing about the hope for a year of buoyant exports.
Spending over US$11 billion to import one group of commodities in less than two months

Spending over US$11 billion to import one group of commodities in less than two months

By the end of February, Vietnam had spent US$11.34 billion to import computers, electronic products and components.
Big opportunities for rice exports in 2024

Big opportunities for rice exports in 2024

Positive prospects are forecast for Vietnam’s rice export in 2024, with bright signs in both market and price.
Vietnam-Australia trade ties expected to grow further

Vietnam-Australia trade ties expected to grow further

Vietnamese Prime Minister Pham Minh Chinh’s official visit to Australia is expected to create new momentum for the bilateral relations, including their trade ties.
Many opportunities to develop the semiconductor industry in the Southeast region

Many opportunities to develop the semiconductor industry in the Southeast region

According to foreign investors, Vietnam is a particularly attractive market for the cooperation and development of the semiconductor industry.
Mobile Version