Large industrial zones set up to attract FDI

HANOI: Several large-scale industrial zones are being set up from the beginning of this year to capture the opportunity of attracting both foreign and domestic manufacturers in the wave of post-pandemic production and business recovery.

VSIP Group, at the end of March, started the construction of the VSIP 3 Industrial Zone, which covered more than 1,000 hectares in Hoi Nghia Commune, Tan Uyen Town and Tan Lap Commune, Bac Tan Uyen District, Bình Duong Province.

To date, the industrial zone attracted more than 30 companies, both domestic and foreign, to study the production opportunity, with an expected total investment of around Us$1.8bil (Rm7.9bil).

Recently, the Dai An Urban – Industrial Zone Development Corp Joint Stock Co and Indian partners signed a cooperation agreement for developing a 960 ha pharmaceutical park project worth around Us$10bil (Rm44bil) to Us$12bil (Rm53bil) in Hai Duong Province.

The park was expected to be where famous pharmaceutical companies in the world gathered for research and production.

Saigon Telecom Technology Joint Stock Company (Saigontel) and Vinacapital signed a memorandum of understanding with Singapore – based Aurous about cooperation in investing in a 700 ha urban–industry complex in Bac Giang with an estimated investment of around Us$2.5bil (Rm11bil).

According to SSI Research, the demand for hiring industrial land will be strong this year, fuelled by a production shift to Vietnam together with the completion of infrastructure projects such as Bien Haa – Vung Tau, Dau Giay – Phan Thiet, , Tha Vai – Cai Mep and Gemalink ports.

SSI Research forecast that industrial land rents in Vietnam would increase by 8% to 9% in the Southern region and 6% to 8% in the North this year due to a scarcity of supply.

Su Ngoc Khuong, senior director of Savills Vietnam, said that the positive growth prospect of the Vietnamese economy after the pandemic attracted investors and created conditions for the industrial real estate market to be robust in the first months of this year.