Demand for industrial land around the country is expected to increase. (Photo: cafeland.vn) HCM City (VNA) –Demand for industrial land around the country is expected to increase thanks tosignificant growth in terms of both industrial production and FDI.
Last year HCM City’s index of industrial production grew by 7.9 percent while Hanoi’sexpanded by 7.1 percent.
FDI flows into HCM City topped 6.3 billion USD while for Hanoi they were worth 2.4billion USD, a national year-on-year increase of 22.5 percent, and most foreignand domestic investors are seeking to expand production.
At HCM City IPs, according to real estate service consultant ColliersInternational, at the end of 2017 the average annual rent was 142.2 USD persquare metre, an increase of 0.9 percent from the previous year.
HCM City now has 20 operating IPs with a total area of 3,025 hectares. Cu Chi districthas the largest number of industrial parks totally measuring 863 hectares, butthe price is lowest there at 80-90 USD per square metre.
By 2025 it is expected that more 2,300ha in eight new industrial parks willcome into the market with a promise of better infrastructure and services.
From now through 2025 rents are expected to increase sharply.
Authorities around the country continue to offer incentives to promote supportingindustries.
The HCM City science and technology department has set up a database for allenterprises in supporting industries, including foreign companies, for easyconnection and technology transfer.
Around 200 hectares in the Hiep Phuoc and Le Minh Xuan 3 Industrial Parks willbe earmarked for supporting industries.
Hanoi has 11 industrial parks with 2,700 hectares, mostly in outlyingdistricts.
Rents in Hanoi’s IPs increased more than in HCM City in 2017 with an occupationrate of 82.6 percent, 5.3 percentage points higher than the year before.
By 2020, Hanoi will have 14 more IPs with 6,100 hectares in operation.
“With a business-friendly environment and high demand from customers, we hopethe trend will continue through 2018,” David Jackson, General Director ofColliers International Vietnam, told the Thoi bao Kinh te Vietnam (VietnamEconomic Times) newspaper.
“Hanoi is a good location close to northern industrial centres like Hai Phong,Hung Yen and Bac Ninh, and this helps the city be the best location for IPs.”
In other cities too, demand for industrial land has increased as manyenterprises have expanded their production since the beginning of this year.
For instance, HTMP Ltd signed a contract with TNI Holdings Vietnam to expandits production at the Quang Minh Industrial Park, Japanese automobile partsmaker Toyoda Gosei started construction of a new plant in Tien Hai ViglaceraIndustrial Park in the northern province of Thai Binh.
Industrial production has recovered and is expected to expand, and theoccupancy ratio at industrial parks has significantly increased, especiallythis year.-VNA
Last year HCM City’s index of industrial production grew by 7.9 percent while Hanoi’sexpanded by 7.1 percent.
FDI flows into HCM City topped 6.3 billion USD while for Hanoi they were worth 2.4billion USD, a national year-on-year increase of 22.5 percent, and most foreignand domestic investors are seeking to expand production.
At HCM City IPs, according to real estate service consultant ColliersInternational, at the end of 2017 the average annual rent was 142.2 USD persquare metre, an increase of 0.9 percent from the previous year.
HCM City now has 20 operating IPs with a total area of 3,025 hectares. Cu Chi districthas the largest number of industrial parks totally measuring 863 hectares, butthe price is lowest there at 80-90 USD per square metre.
By 2025 it is expected that more 2,300ha in eight new industrial parks willcome into the market with a promise of better infrastructure and services.
From now through 2025 rents are expected to increase sharply.
Authorities around the country continue to offer incentives to promote supportingindustries.
The HCM City science and technology department has set up a database for allenterprises in supporting industries, including foreign companies, for easyconnection and technology transfer.
Around 200 hectares in the Hiep Phuoc and Le Minh Xuan 3 Industrial Parks willbe earmarked for supporting industries.
Hanoi has 11 industrial parks with 2,700 hectares, mostly in outlyingdistricts.
Rents in Hanoi’s IPs increased more than in HCM City in 2017 with an occupationrate of 82.6 percent, 5.3 percentage points higher than the year before.
By 2020, Hanoi will have 14 more IPs with 6,100 hectares in operation.
“With a business-friendly environment and high demand from customers, we hopethe trend will continue through 2018,” David Jackson, General Director ofColliers International Vietnam, told the Thoi bao Kinh te Vietnam (VietnamEconomic Times) newspaper.
“Hanoi is a good location close to northern industrial centres like Hai Phong,Hung Yen and Bac Ninh, and this helps the city be the best location for IPs.”
In other cities too, demand for industrial land has increased as manyenterprises have expanded their production since the beginning of this year.
For instance, HTMP Ltd signed a contract with TNI Holdings Vietnam to expandits production at the Quang Minh Industrial Park, Japanese automobile partsmaker Toyoda Gosei started construction of a new plant in Tien Hai ViglaceraIndustrial Park in the northern province of Thai Binh.
Industrial production has recovered and is expected to expand, and theoccupancy ratio at industrial parks has significantly increased, especiallythis year.-VNA
VNA
