Urgently replenish supplyFacing optimistic forecasts about Vietnam’s economic recovery in the 2021-2022 period, the results of attracting investment in the first 3 months of 2021 have grown quite strongly, a series of projects to build hundreds of hectares of industrial parks- In Vietnam, the investment value of many trillion dong in many provinces and cities approved for investment policy in order to meet the land demand for industrial production is forecast to skyrocket in the coming time. The IZs and EPZs in Ho Chi Minh City have difficulty in expanding their acreage to catch the strong investment shift. In the photo: Tan Thuan EPZ, District 7 viewed from above
According to statistics of VietnamFinance, in the first 3 months of 2021, there were 25 industrial zone projects approved, mainly concentrated in the North including: Bac Ninh, Vinh Phuc, Hai Duong, Hung Yen, Thai Binh, Ha Nam … These are projects of over trillion VND of large enterprises such as Viglacera, Gilimex, Sonadezi, Hanaka, Hoa Phat.
For example, in Bac Giang, the Prime Minister has just decided to invest in the project of constructing and trading the infrastructure of Viet Han Industrial Park in Viet Yen district, and adjusted and supplemented the plan for the development of a series of industrial parks. in districts of Yen Dung, Luc Nam and Lang Giang with scale of each project from 100-300 ha; Quang Chau Industrial Park expansion project (Viet Yen district) with an additional area of 90 hectares; Hoa Phu Industrial Park project (Hiep Hoa district) with an additional area of 85 ha.
In Bac Ninh, one of the major projects approved is the project of infrastructure construction and trading in Gia Binh Industrial Park, with a total capital of more than 2,578 billion VND, with a scale of 306.69 ha in Gia Binh district. In addition, there is also an investment project of Yen Phong II-A Industrial Park in Yen Phong district with the scale of 151.27 ha. Most recently, on April 12, Bac Ninh Provincial People’s Committee issued a decision to establish Gia Binh II Industrial Park on an area of 250 hectares in Gia Binh district.
In Hanoi, the Government also issued Decision No. 539 / QD-TTg on the policy of investment project to build technical infrastructure of Soc Son clean industrial zone, Soc Son district. The project has a land use scale of 302.8 hectares, with total estimated investment capital of nearly VND 3,227 billion.
Particularly in Ho Chi Minh City, the government has proposed to the Prime Minister to allow the city to make a subdivision plan to build 380.8 hectares of land in Pham Van Hai, Binh Chanh district (belonging to Pham Van Hai farm) into an industrial zone.
Mr. Dao Xuan Cuong, Head of Industrial Zones Authority of Bac Giang province, said that at present, the land area of industrial zones of the province as planned is 1,322 ha. With 5 industrial zones in operation, now the industrial land areas of the industrial zones have basically been rented out by secondary investors to invest in production. “The wave of investment in Vietnam is growing, including Bac Giang province, which is always in the top 10 provinces with the largest investment attraction in the country. With strong development in the coming time, the demand for land industry is very large, while the area of industrial land is limited, therefore, projects should be carefully considered in terms of land use demand, socio-economic efficiency, etc. to avoid to waste and inefficient use of industrial land “- Mr. Dao Xuan Cuong emphasized.
From the perspective of business, Mr. Ha Trong Binh, General Director of Nam Tan Uyen Industrial Park Joint Stock Company (Binh Duong Province, a member unit of Vietnam Rubber Industry Group), said the company’s orientation in 2021. is boosting investment in infrastructure construction to promote land sublease when Nam Tan Uyen project expands phase II nearly 346 hectares (phase I with a total area of 650 hectares has been put into operation and fully occupied. set by 246 projects) completed legal documentation procedures. “Our orientation is to attract projects in industries with high knowledge density, high technology content, and large scale of investment. We also prioritize Vietnamese enterprises, large FDI enterprises and The investment demand in industrial zones of domestic and foreign investors is very high, so we propose Binh Duong Provincial People’s Committee to quickly decide to hand over land so that we can promptly pick up the house. They come but do not have a “team” to “pass” because we still have problems with legal procedures “- Mr. Binh expressed.
Drastically remove the problems
Mr. Hua Quoc Hung, Head of the Management Board of Exports-IZs of Ho Chi Minh City (Hepza), said the city is implementing programs to support business development and products for rubber – plastic, mechanical – automation industries. food processing – food. Hepza was tasked with preparing a land bank to take over these supporting industries in the direction of subdivision. “We plan to arrange industries in Pham Van Hai Industrial Park and will be arranged in the direction of specialized subdivisions” – Mr. Hua Quoc Hung said and said the city focuses on many branches and trade associations. Every industry needs production land, but the availability is limited because the land availability is limited.
According to the plan, the city’s industrial land fund is 5,921 ha, the occupancy rate is about 72%. In about 28% of the remaining planned land area, there are problems of land law, rental price … so it cannot be put into operation. Recently, Chairman of the City People’s Committee Nguyen Thanh Phong personally worked with Hepza to solve and remove these problems, including the “freeing” of clean land for investors in parallel with the development of land fund. the new is Pham Van Hai Industrial Park. City leaders also worked with the Department of Natural Resources and Environment on the provision of an additional 2,000 hectares for industrial production, including the conversion of land use for industrial production. “The existing industrial zones still have a land fund of about 200-300 hectares. Hopefully, with the determination of city leaders, this year will solve legal problems, land rent … and have a clean land fund to call for. investment, meeting the needs of the business “- Mr. Hua Quoc Hung information.
Another member of Hepza’s board of directors, Mr. Dao Xuan Duc, deputy head of the committee, said that Ho Chi Minh City does not have a large land fund for industrial production such as Dong Nai and Binh Duong. In addition, when compensation for land clearance, agricultural land is calculated according to the price of residential land, so there is compensation for leopard skin in industrial zones. This situation has lasted for many years and has not been resolved, the construction encroachment is getting worse and worse, pushing the cost of clearance compensation too high, Hepza cannot do it. “In fact, the land for industrial production is not in short supply, the problem is how to remove the difficult problems to replenish the” clean “land and how to use it effectively. IZs at all costs screen and select projects to attract investment, aiming to increase investment efficiency per hectare “- Mr. Dao Xuan Duc informed.
Also according to Hepza, industrial land rental in HCMC is very high. For example, in Vinh Loc Industrial Park, the rent of 1 m2 of land is up to 350 USD, the use time is only 30 years; In some other industrial zones, the land use period is short and the price is equally high, but investors still have the need to rent. “Many enterprises set up labor-intensive manufacturing enterprises in the provinces but still choose to locate hi-tech enterprises and scientific research centers in Ho Chi Minh City. land fund and create conditions for businesses to do business “- said Hepza representative.
Concerned that the rent is too high
According to a report by real estate service company JLL Vietnam, land and factory rental prices in the North and the South both reached a new peak in the first quarter of 2021. Specifically, in the Northern provinces, only in In the first 3 months of the year, industrial land prices in this area reached a new peak, at $ 107 / m2 / rental cycle, up 8.1% over the same period last year; Ready-built factories for rent also recorded a 5.8% increase.
In the South, industrial land and rental prices also continued to grow, now reaching a new peak at $ 111 / m2 / rental cycle, up 8.1% over the same period last year. Meanwhile, pre-built factory rents averaged $ 4.5 / m2 / month for the whole region, up 3.1% year-on-year due to many small and medium-sized businesses wishing to open. wide production. In which, Binh Duong and Dong Nai are the leading suppliers in both industrial zones and ready-built factories, but like other localities, these two provinces did not record new supply in the first quarter of 2021.
Mr. John Campbell, Head of Real Estate Industry Savills Vietnam, said that rising prices are a concern for low value manufacturing and low profit margins such as textiles and furniture. “If rents continue to rise in the same trajectory from 2018, Vietnam’s price competitiveness may weaken, unless more industrial land supply is deployed in key economic regions. points to meet the demand and stabilize the price “- this taste emphasized.
Thanh Nhan – Ngoc Anh – Minh Chien
Source: nld.com.vn – Translated by fintel.vn