According to ACBS Research, there is currently not much land left that can be rented, especially in the southern region, so companies are actively expanding their search for new land funds, with the advantage favoring companies with Rubber land is allowed to be converted to industrial land.
Total foreign investment (FDI) registered in Vietnam in the first half of 2024 reached nearly 15.2 billion USD, an increase of more than 13% over the same period, and disbursed FDI of more than 10.8 billion USD, an increase of more than 8%. Of which, real estate business activities reached nearly 2 billion USD, 4.7 times higher than the same period and accounting for nearly 20% of total registered capital.
In the newly released industrial real estate industry report, ACBS Research said that industrial parks (IZs) and economic zones (EZs) account for 35-40% of total annual registered FDI capital or 70-80% of FDI capital. Registered in the manufacturing industry sector. In addition, industrial land rental to build a factory accounts for about 10% of the total investment capital in an FDI project, so the industrial park real estate segment is expected to continue to benefit directly from the steady growth of FDI capital inflows. determined.
Besides the reasons stemming from geopolitical factors and trade cooperation, industrial park real estate in Vietnam is still attracting FDI capital flows thanks to competitive costs compared to many countries in the region, coming from the forces of investment. labor, land rent, and electricity costs.
Bac Ninh rose to lead the country in attracting registered FDI capital in the first half of 2024 with nearly 2.6 billion USD, 3 times higher than the same period, thanks to Amkor's semiconductor material production project increasing investment capital by more than 1 billion USD. billion USD.
As of the end of June 2024, Vietnam has 429 industrial parks established with a total land area of more than 134,500 hectares. Among them, VSIP continues to lead with more than 7,500 hectares, a market share of 5.6%; Vietnam Rubber Group ( HOSE: GVR ) ranked 2nd with more than 7,000 hectares, accounting for 5.2% market share.
The remaining industrial park land fund for rent is not much
According to ACBS Research, there is currently not much land left that can be rented, especially in the southern region, so companies are actively expanding their search for new land funds, with the advantage favoring companies with Rubber land is allowed to be converted to industrial land such as GVR, Phuoc Hoa Rubber ( HOSE: PHR ) or businesses that have attracted large international corporations for many years including Kinh Bac ( HOSE: KBC ), Viglacera ( HOSE: VGC ) and IDICO ( HNX: IDC ).
However, Saigon VRG Investment ( HOSE: SIP ) has the largest remaining commercial land fund that can be rented among listed companies with more than 1,000ha concentrated in Tay Ninh (772ha), Dong Nai (133ha ) and Ho Chi Minh City (130ha). Next is Becamex ICD ( HOSE: BCM ) with the remaining 848ha available for rent in Binh Duong and VGC with 848ha.
In the first half of 2024, there are 3 companies approved for investment in new industrial parks: VGC in Song Cong 2 Industrial Park in Thai Nguyen (296ha) and Doc Da Trang in Khanh Hoa (288ha), GVR was approved for industrial park Hiep Thanh Phase 1 in Tay Ninh (495ha), IDC approved Tan Phuoc 1 Industrial Park in Tien Giang (470ha).
Rental prices continue to increase
As of the second quarter of 2024, the Northern region's industrial park land rental price is 134 USD/m2/remaining term, an increase of 4.5% over the same period; the Southern region 173 USD/m2/remaining term, a slight increase of 1%. It is expected that land rental prices in the period 2024-2026 will continue to grow by 3-7%/year.
The occupancy rate in the Northern region is about 83%, not changing much over the same period; while the South reached 92%, an increase of 6.5%.
Factory rental price in the second quarter of 2024 is nearly 4.9 USD/m2/month, up nearly 2% over the same period in the North and 1% in the South.
Warehouse rental price is about 4.5-4.6 USD/m2/month, down 1% in the North and up 2% in the South. It is expected that rental prices will increase slightly by 0-3.5%/year in the period 2024-2026.
Products that flexibly convert between warehouses and factories, and multi-story warehouses/factories will become more popular in cities with limited land funds, ACBS Research said.
Increase public investment to attract investment
Vietnam has made significant efforts to improve infrastructure to reduce logistics time and costs for businesses as well as attract more investors. According to ADB, Vietnam's infrastructure investment to GDP ratio in recent years has been among the highest in Asia, reaching an average of 5.7%.
As of June 2024, the country has more than 2,100km of highways. The Government aims to reach 3,000km of highways by the end of 2025. This is quite an ambitious goal but clearly shows its determination to accelerate the Government's infrastructure investment process.
In addition, the largest key project is Long Thanh Airport (phase 1), which is ahead of schedule in many items, expected to be completed in 2026.
(vietstock.vn)
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