Savills Vietnam made the statement at a conference on September 4 in Ho Chi Minh City to release its white paper on Vietnam’s industrial real estate in the first half of this year.

They included many factories from China operating mainly in the fields of electronics, textiles, footwear and spare parts production, such as Hanwha, Yokowo, Shuafu, Goertek, Foxcom, Lenovo, Nintendo, Sharp, Kyocera and Oasis, according to the report.

Many companies are moving their factories from other countries to Vietnam, showing the potential for strong development of industrial real estate.

The industrial sector is growing strongly with a tenfold increase in foreign direct investment (FDI) over the last decade. Good land supply is facilitating incoming manufacturing projects and the rise of rental options with ready-built factories (RBF) and built-to-suit (BTS) solutions. Vietnam must be more selective with projects to move up the value chain, improve competitiveness and ensure sustainable growth.

Low labour costs and government incentives, particularly preferential tax rates, will continue to be critical drivers of FDI. However, to maintain the transition to higher-value industries, Vietnam must focus on the quality rather than the number of investments.

By enabling the latest production technologies and increasing workforce training, the government is actively easing qualms around viability, labour shortages and rising costs for a more transparent business environment.

According to Savills Vietnam, the US-China trade war, additional investment and new free trade agreements have all had a positive effect on Vietnam’s industrial sector.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force in January while the EU - Vietnam Free Trade Agreement (EVFTA) was signed in June 2019. This historic and ambitious agreement will eliminate 99 percent of customs duties and has raised interest in industrial property.

Regional Comprehensive and Economic Partnership (RCEP) negotiations are underway and expected to be finalised at the end of 2019. The agreement will increase cooperation between ASEAN countries and the six Asia-Pacific states with existing free trade agreements.

In the first quarter of this year, about 326 industrial zones were established, with a total area of 95,500 ha. Of which, 251 industrial zones are under operation with an area of 60,900ha, accounting for 74 percent of the total, while 75 industrial parks are under construction, compensation and site clearance on a total area of 29,300 ha, according to Savills Vietnam.

Vietnamese businesses invest 277.4 million USD abroad

Vietnamese enterprises invested 277.4 million USD in 30 countries and territories in the first seven months of this year, the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) said in its latest report. 

547 new businesses established in first six months

(BGO) – Bac Giang province has granted the business registration certificate to 547 enterprises and 37 branches and representative offices in the first six month of this year, up 6.6 percent comparing to the same period last year with total registered capital of over 4.6 trillion VND (197.2 million USD) increasing 14.8 percent against previous figure.  

National quality awards presented to 75 businesses

The Vietnam National Quality Awards 2018 were presented at a ceremony in Hanoi on June 23, honouring 75 companies with remarkable achievements in product and service quality and business performance.

Hanoi rolls out red carpet for Danish businesses

Hanoi stands ready to create favourable conditions for Danish investors who come to seek investment opportunities and do business in the capital city, Chairman of the municipal People’s Committee Nguyen Duc Chung has said.

Vietnam’s supporting industries attract Korean businesses

More and more businesses from the Republic of Korea (RoK) are coming to Vietnam to operate in supporting industries.

Source: VNS/VNA