The golden chance for Vietnamese Industrial Real Estate
Vietnamese Industrial Real Estate is being regarded as an ideal destination for the “eagles” in the current wave of moving FDI outside of China as it is facing the obstacles of high labor cost as well as the repercussions from the US-China Trade War in the recent years. Moreover, pressure has been mounting gradually from the Covid-19 Pandemic since 2020, which is also originated from China, hence, accelerating this process even more. Because of that, many countries and Companies around the world has reviewed how their over-dependence on China has avertedly affect them, especially in the Medical, Technology, Production and Heavy Industry areas.
According to the Bank for Investment & Development of Vietnam Securities Company (BSC), Industrial Real Estate will significantly grow from 2021 thanks to new Free Trade Agreements (FTA), especially EVFTA. Promise about the completion of the Institution and improvement of the business environment following the Europe – Vietnam Free Trade Agreement (EVFTA) will draw great attention from European Investors to the Vietnamese Market.
FDI Capital Movement is a golden chance for Industrial Real Estate in Vietnam
The movement, expansion of production wave of Foreign Investors has opened big opportunities for Vietnamese Industrial Real Estate since Vietnam is holding prominent advantages such as labor (young, plenty, low-cost),; Tax Rate, Profit Tax in Vietnam according to the Regulation are at 20% – one of the lowest in South East Asia, only after Singapore, which is very attractive for Investors. Companies that operate in Industrial Parks can also received many preferential treatments like Visa – Exemption, Tax – Exemption 2 – 4 years, Tax Reduction 3 – 15 years and Importing Tax – Exemption.
Another strength of the Vietnamese Market is that it is extremely close to China geographically – helping Investors in obtaining Production Facilities without leaving this 1.4 billion populated market.
Particularly, Vietnam is evaluated as a country with a stable Political Constitution in the status quo, as well as one of the few nations in the world that succeed in controlling the Pandemic. Since then, Foreign Investors are considering Vietnam as an ideal destination to hasten the process of seeking for opportunities at Industrial Parks, Factories, Processing Zones,…
A new report from CBRE shows that the leasing cost and filling rate of Industrial Zones in cities and big production provinces of Vietnam has risen considerably even when Industrial Lands Supplies are restricted.
In the North, the offer price ranges from 65 to 260 USD/m2/leasing period. In Industrial Zones in the South, the offer price ranges from 80 to 300 USD/m2/leasing period.
Son Cam 1 Industrial Cluster enters the Market.
The Vietnamese Industrial Real Estate Market has been vibrant since the beginning of 2020 with the grow of land & factory leasing costs from both old and new Customers. The land supply for leasing and pre-constructed factories has continued to upsurge steadily in both the South and the North Industrial Areas.
In Thai Nguyen, the once prominent location for the Steel Industry, is not excluded from the current situation when it is also planning, developing, and implementing Industrial Park Project on a large scale, opening new opportunities for Investors.
A major Company in Thai Nguyen that is active in the Sewing Industry is the TNG Investment & Trade Joint Stock Company has swiftly initiated the Son Cam 1 Industrial Cluster Project. TNG is formed in 1979, lies in the Top 500 largest Companies in Vietnam, top 10 biggest in the Sewing Industry…
Son Cam 1 Industrial Cluster is located at Son Cam, Phu Luong District, Thai Nguyen City, with the scale of 70.58ha. Lying at a prospective location, Son Cam 1 can be conveniently commute to with the land traffic system, the inter-province railroad system cojoined with Hanoi and other Northern provinces that cross the present Hanoi – Thai Nguyen – Lang Son highway.
According to TNG, the Son Cam 1 Industrial Cluster will aim to develop a green Industrial Zone, eco-friendly as they develop cutting-technology in water utilization, waste processing and creating a green eco-system both in and out of the area.
Son Cam 1 with the capacity of Land Leasing and pre-constructed Factory Leasing is expected to draw great attention from supporting Companies to complete the supply chain for the Sewing Industry in Vietnam. The development of Son Cam 1 will also generate a large amount of stable work for the local Labor source, aiding to the Vietnamese Economic Development.
Furthermore, we also need to mention BRD Joint Stock Company, an early Partner of TNG in Developing overall Project and Business Management. BRD Vietnam is well-known being a top-class company in Vietnam in the field of Real Estate Consultation, Management & Marketing. With our great expertise, BRD Vietnam has consulted and provided Marketing solutions for the overall Project as well as making Business Implementation to maximize the advantages of Son Cam 1 Industrial Cluster along with the Investors’ Profit.
With the current vibrant Industrial Real Estate Market in Vietnam and the potential that Son Cam 1 Industrial Cluster holds,, BRD Vietnam aim to head to 2020 as one of the pioneer Companies in developing Industrial Real Estate in Vietnam.
