Industrial parks increase supply of high-quality ready-built factories
Industrial parks increase supply of high-quality ready-built factories
The strong development of the industrial real estate market has promoted the ready-built factory segment in the eyes of international and domestic manufacturers.
According to the General Statistics Office, by May 2024, foreign direct investment (FDI) flow into Vietnam had continued to achieve positive results, with more than $11 billion pledged, an increase of 2 per cent over the same period last year. Meanwhile, disbursed capital reached about $8.25 billion, an increase of 7.8 per cent over the same period in 2023.
Figures from the Vietnam Association of Realtors (VARS) show that investment policies and support from the government, along with improving infrastructure and strategic positions in global supply chains, the stable political environment, and competitive labor costs have made Vietnam an attractive investment destination.
In addition, with the potential of the semiconductor market, global businesses have shown interest and started investing in Vietnam. These factors have led to increased searches for factories and industrial parks that meet location, services, and quality infrastructure requirements, such as stable power sources, treatment systems, high-quality infrastructure, effective wastewater management, and good investment support policies.
According to VARS, Vietnam's industrial real estate market still has much room for growth, promising to continue to maintain strong momentum, and is expected to continue to play a key role in the economy.
In addition, the logistics industry with the e-commerce expose is also growing strongly. Domestic and foreign logistics businesses are actively expanding their scale and scope of operations in Vietnam. Real estate for rent in industrial parks (IPs) is of interest to investors thanks to preferential policies and guaranteed industrial infrastructure.
According to RSL Group Co, ready-built factories are the optimal choice for businesses because they have outstanding advantages that help save time and initial investment costs.
In addition, businesses can be flexible in choosing the space to rent a factory, as well as choosing a suitable operating time for the project. Moreover, these factories are all operated by professional management units, helping businesses quickly resolve required legal procedures.
Meanwhile, giant industrial real estate developers have also quickly taken advantage of opportunities by researching and developing IPs following ecological trends and comprehensive infrastructure to meet modern production needs and improve service quality and competitiveness.
According to Saigon VRG Investment JSC, one of the leading industrial real estate developers in the southern market, to meet the increasing needs of investors, IPs must quickly change, adapt, and increase service quality.
Saigon VRG is gradually making changes towards the development of eco-IPs, in accordance with the general development trend seen around the world. Infrastructure in IPs is also guaranteed, such as stable electricity and water supply, modern wastewater treatment system, quality assurance, and advanced security.
Saigon VRG is also proactively building standard factory areas in key locations, ensuring adequate provision of utility infrastructure to meet the needs of small- and medium-sized enterprises.
In particular, a factory area covering nearly 20,000 square metres located in Le Minh Xuan 3 IP (Binh Chanh - Ho Chi Minh City) is set to go on the market.
Ready-built factories in the IP have an area of 680sq.m, integrating 2-storey offices and utilities such as electricity, water, wastewater treatment, fire protection, and located near the centre of Ho Chi Minh City, and have been sought after by interested investors.
According to the Management Board of Le Minh Xuan 3, the IP will continue to deploy the construction of ready-built factory areas in diverse spaces, fully meeting industrial infrastructure standards to suit the real demands of investors.
Saigon VRG is currently developing and managing four IPs in key areas of Ho Chi Minh City, Tay Ninh, and Dong Nai, including Le Minh Xuan 3 IP, Dong Nam IP, Phuoc Dong IP, and Loc An – Binh Son IP.
By the end of 2023, Saigon VRG's IPs had attracted more than 200 domestic and foreign investors with a total investment of about $8 billion.
