On April 23, in Hanoi, the Vietnam Industrial Real Estate Forum 2019 was co-organized by the Central Institute for Economic Management (CIEM), the Vietnam National Real Estate Association (VNREA) and Thuong Gia (Merchant) Magazine.
The framework of the forum focused on the impacts of current context and policies, and how to make the best out of the available advantages to serve as a foundation, in creating further development opportunities for Vietnam’s industrial estate market. Thereby, helping domestic and foreign investors access information on land planning in each locality and their preferential policies in attracting investment.
At the forum, Chairman of VNREA Mr. Nguyen Tran Nam shared that industrial real estate is currently the most inviting segment of 2019. Vietnam’s industrial realty has been developing continuously to become one of Southeast Asia’s investment hubs for manufacturing industry.
“The real estate market has the tendency to stablize and go into order, combined with many benefits, from context to policies, the Vietnam’s industrial property market still has plenty of room and opportunities to develop,” Nam emphasized. “This will be a promising segment with great development momentum, both in the short, medium, and long term, if investors know to seize their chance and the government has supportive policies to encourage and facilitate market growth to match its exceptional potential.”
According to Mr. Tran Quoc Trung, Deputy Director of Department for Economic Zones Management under Ministry of Planning and Investment, by the end of 2018, there were 326 industrial parks (IP) and export processing zones (EPZ) established nationwide, with a total area of over 95,600 ha; 251 IPs had been put into operation with a total area of more than 66,200 ha. Occupancy rate at the operating IPs reached 73.9%, of which 885 operating IPs have a centralized wastewater treatment plant.
Director of the Central Institute for Economic Management Dr. Nguyen Dinh Cung firmly said: “The attractiveness of Vietnam’s industrial real estate is greater than regional average and continues to be driven by factors like low labor costs, reasonable land rent, and preferential corporate income tax rates, etc.
However, there are shortcomings to the development of Vietnam’s industrial realty including incomplete multi-traffic connecting infrastructure, low technical standards factory infrastructure, little contribution of IPs and EPZs to GDP compared to its potential, unclear and weak existing policy orientation to support investors and promote market development.”
With two sessions, the forum discussed the most concerned issues of industrial real estate, helping identify trends as well as opportunities and challenges. On that basis, experts’ sharings have opened doors to new orientation, setting industrial estate on a momentum to break through and develop towards sustainability and efficiency.