Attractiveness of industrial real estate

FRIDAY, 03/07/2020 17:43:14

Over the past time, many businesses have proposed construction of the infrastructure of industrial zones and clusters to catch production shifting waves, bringing liveliness to the industrial real estate market.

The industrial real estate market in the province is very lively for local authorities have requested in writing to add more than 50 industrial clusters with a total area of over 3,000 ha. In the photo: Ngo Quyen industrial cluster in Hai Duong city
Many suggestions

Hoa Quan Co., Ltd. (Ha Noi), the investor of Doan Tung 2 industrial cluster (IC) in Thanh Mien district, is closely coordinating with the local authorities to accelerate site clearance and build the IC infrastructure.

According to the company leaders, secondary investors are very anxious and have asked the investor to quickly complete the infrastructure so that they could soon build workshops.

Having been attached to Hai Duong for years and called on dozens of enterprises to invest in a number of ICs in Ninh Giang, Thanh Mien, etc., so the company leaders understand the attractiveness of the industrial real estate market.

Dao Thi Cau, Director of Hoa Quan Co., Ltd., said Vietnam in general and Hai Duong in particular had become a reliable destination of domestic and foreign investors.

Especially, when the trade war between two powers of the US and China is increasingly tense, global investors' trend of shifting production from China to Southeast Asia, including Vietnam, is clearer and clearer.

This is an opportunity for investors in the infrastructure of industrial zones and ICs to invite foreign investors to Vietnam.

After years of only connecting and inviting secondary investors, in 2019, of Hoa Quan Co., Ltd. decided to build IC infrastructure to take the initiative in appealing to and choosing investors.

The People's Committee of Kinh Mon provincial town has issued a written request for the addition of three ICs of That Hung, Bach Dang, and Quang Trung to the plan for IC development in Hai Duong province until 2020 with orientation to 2025.

According to leaders of the provincial town People's Committee, the supplementation of the three ICs aims to meet investors' needs since the remaining industrial production land of the provincial town in six existing ICs is fewer than 50 ha in area.

With traffic advantages in terms of both waterways and roads, there is a great need for land for industrial development in the provincial town.

Vice Chairman of the provincial town People's Committee Le Van Dien said many domestic and foreign investors had studied and wished to invest in the provincial town provided that there must be synchronous infrastructure and clean grounds for workshop construction and business.

If the Prime Minister agrees, many businesses are willing to build technical infrastructure to welcome secondary investors.

The industrial real estate market in the province is really lively for district, city, and provincial town authorities have requested in writing to add more than 50 ICs with a total area of over 3,000 ha.

There have been investors asking to build the technical infrastructure of many of the ICs and ready to satisfy increasingly high requirements of domestic and foreign enterprises.

Right choice needed

To date, Hong Phuc – Hung Long industrial cluster in Ninh Giang district has been filled. In the photo: Hai Anh Garment JSC. in the industrial cluster has a total investment of over VND180 billion and about 1,100 employees. Photos: Thanh Chung
According to data of the Department of Industry and Trade, Hai Duong has established 38 ICs, including 32 active ones with a total area of 1,678.6 ha and 400 investment projects (with a total registered investment of more than VND10,000 billion). The total area approved for hire exceeds 800 ha, and the average occupancy rate is about 70%.

Localities' request to supplement dozens of new ICs shows the liveliness of the industrial real estate market as well as the attractiveness of Hai Duong in the eyes of investors.

However, the construction of new ICs should learn from the previous spontaneous development of ICs.

Among the established ICs, only 10 have technical infrastructure investors but roads and water supply and drainage systems of only two ICs have been built.

Especially, there remain a lot of limitations in IC management. The use of land for wrong purposes or unconformable to the targets of projects, arbitrary transfer of land, no or slow implementation causing waste of natural resources, etc. are still common.

Therefore, the selection of infrastructure investors for new ICs must be done closely. Specialized agencies should carefully appraise the capability and prestige of investors to avoid the assignment of IC technical infrastructure to incapable investors, leading to no or slow implementation or transfer of projects to seek profit.

Apart from creating favorable conditions for investors in site clearance, the creation of a material source for ground leveling should also be taken into account soon.

If the establishment of dozens of new ICs is approved, there will be a great need for minerals for ground leveling. Loose planning and management will facilitate the exploitation, transport, and sale of minerals of unknown origin, causing loss of natural resources and State budget.

Hai Duong also needs practical solutions to prepare a skilled workforce to meet requirements of enterprises since the lack of skilled laborers is a significant barrier to investment invitation.

Besides, a series of other issues greatly affecting enterprises' decision when seeking investment opportunities in Hai Duong such as warehouse systems, electricity and water supply capability, trade and conference centers, hotels, restaurants, services for workers, etc. must also be ready.


Please enter comment