The ground clearance process and legal procedures to ensure a clean land fund for investors are still “bottlenecks” that need to be solved to attract investment in the industrial park…
At the discussion session “Identifying new trends in industrial park development” under the Forum “Proactive adaptation and sustainable development”, organized by Vietnam Economic Review/VnEconomy/Vietnam Economic Times on September 20, representatives of industrial park investors and businesses shared their views on the prospects of the industrial real estate market in the coming time as well as recommendations to solve the “bottlenecks” that need to be solved to attract investment.
From the perspective of a real estate business, Ms. Vu Thi Thu Hang, Sales Director, TNI Holdings Vietnam, sees the trend of industrial real estate that is receiving great attention from investors.
Currently managing, operating and doing business on over 3,000 hectares of land in 14 industrial parks in 8 provinces and cities across Vietnam, Ms. Hang believes that TNI Holdings is a rare enterprise that has experienced about the heat of the current market recently, especially in the context of re-regulating the global supply chain, and Vietnam is considered a safe and effective destination for investors in the world.
According to Ms. Hang, from the end of 2018 to the beginning of 2019, the industrial real estate market had many great fluctuations, leading to “hot” development in recent years. This development is first reflected in the sudden increase in the scale of leased land, due to the participation of many investors, especially from: Korea, China, Singapore… leading to scarcity of resources supply. In addition, due to the completion of the site clearance and legal process has not kept up with the progress of investors.
“Our customers are located in attractive areas in terms of investment attraction such as Bac Ninh, Vinh Phuc, Hai Duong, Hung Yen where there is a lot of interest. However, in the past time, it is the limitation from the clean land fund that has greatly affected us to meet their orders, ” Ms. Hang said.
The representative of TNI also acknowledged that the ground clearance process and legal procedures to ensure a clean land fund for investors are currently a great challenge and pressure. Also due to the large land fund of the industrial park, the infrastructure investor must compensate in stages, but because of the legal corridor and the process of compensation for site clearance, there are still many obstacles, leading to this having to be delayed not only affects the entire business planning process of the enterprise, but also loses opportunities.
Not only the scale of land lease increased, the hot development of the industrial real estate trend according to Ms. Hang also led to an increase in prices throughout the market. Due to increased demand, investors are willing to pay high prices to sign land lease contracts, to ensure quick construction permits and early start of operation
“However, with the number of newly approved projects recently, according to statistics from the beginning of the year until now, the Government has approved about 35 new industrial park projects, within the next 2-3 years, when these projects are put into operation, it will be very favorable conditions to have a more abundant supply for investors, ” Ms. Hang said.
A representative of TNI Holdings also assessed that the industrial real estate model will continue to develop very quickly in the near future. In addition, with the draft decree replacing Decree 82/2018 on management of industrial parks and economic zones, the concept of industrial parks has been completed, in addition to ecological industrial parks, supporting industries, service urban industrial parks, there are also specialized industrial parks, science and technology industrial parks.
“It can be seen that this represents the development and will go into more depth of the industrial zones coming here. From the perspective of an infrastructure investor, in the near future, we will have more research and evaluation to develop an industrial park model suitable for each market, in order to further increase the experience for investors. ensure sustainable development”, the representative of TNI Holdings emphasized.
From the perspective of businesses having investment activities in Hai Phong, Mr. Ko Tae Yeon, General Director of Heesung Electronics Vietnam, affirmed: “A safe destination, the government’s priorities, especially the grassroots level. Infrastructure is a huge value for an investment decision, currently Vietnam is a safe destination, but the Government will need more and better policies to attract investment in industrial parks.”
For Hai Phong, there are 12 industrial parks, but Mr. Ko Tae Yeon judged that it was not enough for the local scale. In fact, the occupancy rate in industrial parks in Hai Phong is still very high. “According to our assessment, in the next few months, when the epidemic situation is better controlled, we will attract more new investors, so it is necessary to prepare right now. now,” Mr. Ko Tae Yeon said.