In the trend of foreign investment capital moving into Vietnam in 2020, experts has forecasted that industrial parks leasing in Ho Chi Minh and many Southern provinces of Vietnam is still attractive field for many investors.
This is an opinion given by many experts at the seminar "Overview of the world economy and Vietnam during the Covid-19 period and the driving force for the development of the real estate market in the South", and the Launching Ceremony "Southern Regional Real Estate Investment Promotion and Consultancy (CRIPs)", in Ho Chi Minh City. Associate Professor, Dr. Tran Dinh Thien, Member of the Economic Advisory Group of the Prime Minister, said that in 2021, Vietnam will be a destination to attract foreign investment resources, with great opportunities in including foreign direct investment (FDI) poured into industrial properties including industrial land, ready-built workshops and warehouse for rent. However, Vietnam needs to select this capital flow to bring the highest efficiency. "The booming trend of industrial parks and urbanization in the coming time will attract FDI inflows, in which the southern key economic region has a great attraction" - Assoc.Prof. Dr. Tran Dinh Thien said. With this same point of view, another expert also said that FDI inflows into Vietnam are associated with the process of urbanization, population mobility, infrastructure, a breakthrough in socio-economic development in Vietnam. With this trend, industrial parks and other types of industrial properties will also be promoted. Overview of industrial real estate in South of Vietnam in 2020 According to the Ministry of Construction, although the real estate market was subject to the double impact of COVID, the market still had a positive reaction, reflected in data on the total registered FDI sharply increased by 400% compared to second quarter of 2020. Specifically, the total registered FDI in real estate increased quarterly, from $ 0.264 billion in the first quarter to $ 0.536 billion and $ 2.35 billion in the third quarter of 2020. Experts in the real estate sector had comments that this is a good signal for the addition of an important source of capital for development investment of the real estate sector in particular and an important contribution to investment in economic development of Vietnam in general. In addition, when demand continues to increase in the context of a lack of supply, the market has a phenomenon of industrial land prices rising, typically in the big city like Ho Chi Minh City reached around 147-150 USD/m2. Commenting on this trend, an expert of Industrial Real Estate Division Savills Vietnam said: “The increase in land rental rates will affect occupancy rates as this is one of the factors that are concerned by investors, especially for who doing in electronics and technology equipment industry. Special attention should be paid if the land rental rate exceeds the average threshold. However, the land supply will be highly occupied, and partially expected to have a large impact on the law into force 2021. Currently, the key provinces have high occupancy rates, which means that the remaining land bank will have a high price”.
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