Vietnam is considered one of the most dynamic economies in terms of industrial infrastructure establishment.
The country has 325 IZs with the total area of 90,000 hectares, said Prof. Dang Dinh Dao. While investment in infrastructure in Vietnam is the highest in the region in recent years it mostly serves IZs and investors, he said.
“We focus too much on production and attracting investment in production. We are concerned too much about the scale and quantity but do not care about the connection and distribution. There is no big logistics IZ in the true sense of the word across the country.”
International investors flock to Vietnam pouring money into industrial real estate to re-lease infrastructure items, or they make investment in industrial infrastructure just to serve themselves.
In the past, China and Japan were No 1 in investments in infrastructure. However, South Korea has become more interested in the real estate sector in Vietnam. In the first four months of 2019, the country invested $1.98billion in Vietnam (13.6 percent).
It also provides loans to Vietnam to develop infrastructure, with total capital of up to 1.09 trillion won, or VND21.5 trillion.
The expert said: “Vietnam should have a strategy to attract foreign investment in logistics real estate. It is necessary to build a uniform industrial connection system for 325 industrial parks across the country to promote domestic production.”
“Vietnam needs to be cautious when borrowing money to develop infrastructure, or it will just develop infrastructure to serve foreign investors,” he said.