Industrial real estate benefits from M&A and new supply

VCN - During the fourth wave of Covid-19, Vietnam's industrial real estate continued to prosper as new industrial parks continued to be established, a few major industrial projects began to operate and the market witnessed many large M&A deals.
3944-0437-kcnvinhphuc
Vinh Phuc, Bac Ninh, Long An, Nghe An have many newly approved industrial parks. Photo: Internet

Many M&A deals in industrial real estate

The performance of the industrial sector in the first five months of 2021 still recorded improvements, although social distancing and domestic travel restrictions have made it difficult for investors who want to rent industrial land.

As of May 20, 2021, Vietnam has attracted a total registered FDI of US$13.9 billion. The manufacturing and processing industry attracted US$6.1 billion (accounting for 43% of total capital), there were 215 new projects with a total registered capital of US$2.57 billion and 222 existing projects registered an increase of US$3.1 billion in capital.

The largest industrial production projects in May 2021 came from groups of businesses from Hong Kong and Singapore in Quang Ninh and Bac Giang.

The representative of Savills said that the growth momentum of industrial real estate benefits positively from M&A deals and the new supply of industrial real estate.

Regarding M&A activities, the market has witnessed new deals in 2021. Typical deals include Boustead Projects acquiring a 49% stake in KTG Bac Ninh Industrial Development Joint Stock Company (in Yen Phong industry park) for about US$6.9 million.

ESR Cayman Limited and BW Industrial Development Joint Stock Company (BW) cooperate to establish a new joint venture to own and jointly developing 240,000 m2 in My Phuoc 4 Industrial Park near Ho Chi Minh City.

The Vietnam Real Estate Brokers Association also said that in the first quarter of 2021, Vietnam will continue to be an attractive destination for international investors and manufacturers. Therefore, the development prospects of industrial parks in Vietnam remains good.

Currently, most of the provinces and cities that are capable of industrial development have a very active phenomenon of proposing to develop new industrial parks.

Dozens of approved projects

Regarding new supply, as of the first quarter of 2021, statistics from the Ministry of Planning and Investment show that there are 370 industrial parks established in the whole country with a total land area of ​​about 115,200 hectares. These industrial parks are estimated to have provided about 3.6 million new jobs in both the North and the South.

In the first quarter of 2021, dozens of industrial projects in 13 provinces and cities were approved, promising to provide thousands of hectares of new industrial area.

For instance, Bac Ninh is the province with the largest number of future projects with five new industrial parks. In Vinh Phuc, industrial park projects such as Song Lo, Tam Duong 1, and Thai Hoa - Lien Son - Lien Hoa (total area 500 hectares) will also be introduced. Many new projects are expected to be implemented soon in the provinces of Hai Duong, Nam Dinh, Nghe An, Quang Nam.

Dong Nai has also announced plans to build three new industrial parks with a total area of 6,475 hectares and Long An is expected to have a new US$59 million industrial project in Duc Hoa district.

Previously, forecasting the industrial real estate market in the second quarter of 2021, the Vietnam Association of Realtors said that the domestic demand for industrial real estate would continue to increase. Many new industrial parks will continue to join the Vietnamese real estate market and many new projects to develop industrial park infrastructure will be approved.

Along with that, many logistics projects serving industrial parks will also be promoted and the rental price of warehouses and factories will continue to be stable.

By Hoai Anh/Dieu Huong

Related News

Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Industrial real estate - "Magnet" attracting foreign capital

Industrial real estate - "Magnet" attracting foreign capital

VCN - Looking back at the development journey over the past 30 years, it can be affirmed that the model of industrial parks and economic zones has been playing an important role, as a driving force for growth and the process of industrialization and modernization of the country; a channel to attract investment resources, especially foreign direct investment (FDI), contributing to improving the business environment and enhancing competitiveness, ensuring sustainable development.
Transparent and stable legislation is needed to develop renewable energy

Transparent and stable legislation is needed to develop renewable energy

VCN - Achieving net zero emissions by 2050 is a development goal that Vietnam has committed. This is mainly achieved through a strong energy transition and low-emission development. However, the transition to clean energy is not easy for Vietnam because building a clean energy supply system requires large investments. In addition, technology in the production and storage of renewable energy is still limited, making it difficult to ensure a stable energy supply.
Corporate bond issuance soars in comparison to 2023

Corporate bond issuance soars in comparison to 2023

VCN - According to the Ministry of Finance, from the beginning of the year to June 21, 2024, 41 enterprises have issued private corporate bonds with a total value of VND 110.2 trillion.

Latest News

Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surplus value recorded a spectacular increase year on year.
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

VCN - According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.

More News

Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Read More

Your care

Latest Most read
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surp
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Mobile Version