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Savills says industrial parks have great potential for development

Update: September, 26/2015 - 09:15

Phu Bai Industrial Zone in the central-region province of Thua Thien-Hue. Industrial parks have huge potential for development in the domestic real-estate market. — VNA/VNS Photo Quoc Viet
HA NOI — Industrial parks (IPs) have great potential for development in the domestic property market in the coming time, Savills Viet Nam's report on industry zones, which was released on Thursday, said.

The report said according to the planning and investment ministry, there were 299 industrial parks in Viet Nam as of July 2015, with a total area of approximately 84,000ha, of which the total leasable area was 56,000ha (66 per cent). The leased area is approximately 26,000ha, at 46 per cent occupancy.

There are 212 operating IPs with less than 60,000ha of land, and 87 IPs with less than 24,000ha of land that are under site clearance and infrastructure construction.

Savills Viet Nam said recent research by Standard Chartered bank showed a shift of investment from China to the ASEAN community in a bid to capitalise on the upcoming Trans-Pacific Partnership (TPP). Forty-four per cent of the respondents said they would choose Viet Nam for its large domestic market, 29 per cent for lower operational costs and 18 per cent for an ample labour supply.

Notably, giant tech firm Microsoft has closed its two Nokia plants in China in favour of a new location in Viet Nam. The company was reportedly expanding its US$210-million plant in Bac Ninh's Viet Nam - Singapore IZ and tripling its current head count of 5,000.

The Regional Comprehensive Economic Partnership (RCEP) and the ASEAN Economic Community (AEC), in which Viet Nam and Singapore are members, also facilitate bilateral investment opportunities, Savills Viet Nam, a foreign consulting firm in the property sector, said.

The Viet Nam - Singapore Industrial Park (VSIP), located in the central Quang Ngai Province, has so far drawn $7.8 billion in FDI since it opened at the end of 2013.

Singapore-based Mapletree Investments has reportedly committed to invest $1 billion in developing IZs, offices and apartments in Viet Nam. Other Singaporean firms such as Famed Banyan Tree, Keppel Land and CapitaLand, have announced plans to invest in large-scale property projects in Viet Nam.

The report said the northern key economic zone (NKEZ) covers seven provinces and municipalities of Ha Noi, Hai Phong, Vinh Phuc and Bac Ninh, besides Hung Yen, Quang Ninh and Hai Duong.

There are 46 industrial parks (IPs) in the NKEZ, covering a total area of more than 12,100ha. Most IPs are located along National Highway 5 (Ha Noi - Hai Phong), Thang Long - Noi Bai Expressway, National Highway 2 or National Highway 18 (Bac Ninh - Mong Cai).

Meanwhile, the key southern economic zone comprises HCM City and surrounding provinces such as Binh Duong, Dong Nai, Long An and Ba Ria-Vung Tau. The zone has 106 operating IPs with a total area of 33,500ha. These IPs are located near national highways, provincial roads, international airports and railway stations, besides ports. — VNS

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