Seck Yee Chung, vice president of SingCham Vietnam, says Singaporean firms invest in industrial real estate in VIệt Nam through both infrastructure development and land/infrastructure leasing. — Photo courtesy of ITPC

HCM CITY — After the recent provincial reorganisation, HCM City is accelerating planning adjustments and redefining its role as a regional industrial and services hub.

In this context, industrial park infrastructure, including both technical and social facilities, is considered critical for attracting high-quality foreign investment, building supply chains and enhancing long-term competitiveness, according to the Investment and Trade Promotion Centre of HCM City (ITPC).

However, many infrastructure developers and manufacturers still faced challenges in accessing land, completing investment approvals, handling site clearance, implementing green industrial parks, and developing integrated industrial–urban–services models, ITPC deputy director Cao Thị Phi Vân told the recent 2025 Investment Legal Support Forum.

Dr Lê Hồng Hạnh, president of the Vietnam International Arbitration Centre (VIAC), said industrial parks and export processing zones would remain the city’s key growth engines, and the administrative mergers would provide favourable conditions for the city to develop and upgrade its industrial park systems.

But many projects faced numerous obstacles, both common procedural bottlenecks and legal issues often arising from transactions between project participants.

These bottlenecks frequently led to disputes, causing investors to incur unnecessary losses and reducing the attractiveness of industrial real estate.

While the sector remains promising, Hạnh said closer coordination between authorities, organisations and businesses was essential.

Seck Yee Chung, vice president of the Singapore Chamber of Commerce in Việt Nam, said Singaporean firms invested in industrial real estate both in the form of building infrastructure and leasing land or infrastructure.

Direct investment offers long-term advantages due to lucrative government incentives, according to Chung.

The Vietnam–Singapore Industrial Park, a joint venture with a state-owned enterprise, is widely regarded as a successful example.

However, complicated legal procedures, lengthy processes and weak coordination among authorities continue to pose challenges.

Leasing land or ready-built infrastructure, in contrast, shortens project timelines, making it suitable for small and medium-sized manufacturers.

But it leaves investors dependent on the industrial park developer’s competence and exposes them to risks related to lease duration, especially if expiry coincides with the land-use term of the entire park.

Sam Conroy, president of the Australian Chamber of Commerce in Việt Nam (AusCham Vietnam), said inconsistent regulations and lengthy administrative procedures were the biggest challenges for foreign investors.

Licensing processes involving multiple authorities and inconsistent interpretations of regulations created unpredictability and increased project waiting costs, he said.

He added that a shortage of suitable land, particularly for specialised manufacturing such as maritime industries, had hindered many Australian firms from expanding.

Inadequate technical infrastructure and weak logistics also increased operating costs, he said.

The Vietnam International Arbitration Centre and AusCham Vietnam sign an agreement to support businesses with legal guidance and in dispute resolution. — Photo courtesy of ITPC

Conroy noted rising interest among Australian businesses in public-private partnerships and build-operate-transfer models in infrastructure and port logistics projects in line with Việt Nam’s maritime economic development strategy.

Investors hoped for more open legal frameworks and transparent, efficient procedures to move projects forward more quickly, he added.

According to Lawyer Bùi Văn Thành, vice chairman of the Vietnam Industrial Park Finance Association and a VIAC arbitrator, infrastructure developers typically seek long-term projects, but the current legal framework contains gaps related to land access and land-use term extensions.

Procedures for approving investments remain complex and vary with locality.

Many projects are prolonged due to delayed site clearance, slow infrastructure development and unclear responsibilities among parties, leading to disputes.

He said investors should do thorough legal due diligence, use standard contracts, include protective clauses, and purchase legal risk insurance to limit disputes.

Trần Việt Hà, deputy head of the HCM City Export Processing and Industrial Zones Authority, said under the city’s industrial park and export processing zone planning for 2025–30, existing industrial parks would remain where they are but transition toward high-tech and eco-friendly models.

Hà said the city encouraged businesses to upgrade technology, expand green production and increase value-added content and participate in high-tech, knowledge-based industries.

Vân of ITPC said the city had implemented a number of new policies, laws and decrees related to land, investment, social housing, industrial park development, and green transition this year, making guidance on legal implementation more urgent than ever.

Through the forum, ITPC sought to create a substantive exchange platform for investors, legal experts and regulatory agencies, gathering concrete recommendations to build a safer, more transparent and more predictable investment environment, she said.

The VIAC and AusCham Vietnam signed an agreement to strengthen information exchange, share experiences and promote collaboration in business support activities, particularly in sharing legal information and assisting enterprises in preventing and resolving disputes. — VNS