Industrial real estate in Hai Phong: “Gold Mine” attracts investors

According to the Vietnam Real Estate Association, Hai Phong has great potential for industrial real estate development. This is considered a “gold mine” since it attracts investors.

Great potentials

Market director, JLL Vietnam, Nguyen Hong Van said that Hai Phong still has great potentials to develop the real estate market, especially real estate in industrial zones. Compared to other provinces and cities in the North, Hai Phong has many advantages in industrial real estate development. In particular, Hai Phong’s vacant land area for investors is large. According to JIL Vietnam’s analysis, currently, the total industrial land for lease in the Northern market (including the following markets: Hanoi (excluding Hoa Lac Hi-Tech Park); Hai Phong; Bac Ninh; Hung Yen and Hai Duong is 9,371 ha. In particular, Hung Yen and Hanoi markets are filled with 90% or more of the supply. Thus, only Bac Ninh and Hai Phong have enough vacant land for investors. Although recently, the occupancy rate in the city’s industrial parks has been increasing rapidly, the city has been planning and building new industrial zones and clusters. Specifically, according to the Resolution of the 16th Party Congress, from now until 2025, the city continues to invest in building 5 new industrial zones with a total area of more than 6,400 ha in 8 districts. In particular, Tien Lang district will build 3 industrial zones with the largest area, more than 1,450 hectares, Vinh Bao district will open 3 more industrial zones, with an area of 900 hectares. Out of these 15 planned new investment zones, 11 ones are ongoing in steps according to the investment order.

With many favorable factors, Hai Phong industrial real estate has great potential for development. Photo: Dinh Vu Industrial Park.

According to other real estate experts, Hai Phong real estate market in general, Hai Phong industrial real estate in particular has great potential, resonating from many advantages. That is, Hai Phong has a diversified transportation network, it is the only locality in the North converging all 5 types of traffic: road, rail, sea, inland waterways and air. With its favorable geographical location and invested infrastructure, Hai Phong is oriented to become a key gateway for import and export activities of the Northern. Besides, other factors such as the increasing competitiveness of the province, the increasingly favorable investment environment, constant improvement in the quality of human resources… are also a plus point for industrial real estate development in Hai Phong. Also by the above factors, Vietnam Industrial Real Estate Portal (IIP Vietnam) assesses that Hai Phong real estate will definitely become a “gold mine” attracting investors.

Synchronous mechanism, improving the quality of infrastructure

According to real estate experts, although Hai Phong has great potential, to create a strong attraction to investors, it is necessary to promote the restructuring of existing industrial parks. Besides, it is necessary to develop new industrial parks in association with housing planning, public works serving the lives of workers and workers. At the same time, it is necessary to create a link and synchronization with projects in other related industries and occupations, to avoid unfair competition among industrial zones, management agencies in the city need to build a strict legal corridor in this area.

According to the representative of Sao Do Investment Group Joint Stock Company, the investor of South Dinh Vu Industrial Zone 1, to attract investors to the Industrial Zone, the most important thing is that the infrastructure and the quality of the infrastructure meet the expectations of investors or not. A great number of IZs are in operation now, but there is very little clean land for handover. Many areas developed but there is currently no land for handover. Some areas are planned in a large area but only cleared in the early period, while in the later period there is planning but no land. Therefore, there should be a macro factor such as the Government and city policies in attracting investment (reform of administrative procedures, the connection of region’s traffic…).

According to Mr. Pham Hong Diep, Chairman of the Board of Directors, General Director of South Cau Kien Industrial Zone, investment in a real estate project takes at least 2 years. For example, a real estate project of over 10 hectares must go through the appraisal order from the district level, then to the province or city level (for consultation of departments, sectors and agencies) and then submit it to the Prime Minister for approval. Each place also takes a few months. That is the time if the administrative procedures are purely “favorable“, otherwise, they must start over. Therefore, businesses expect the active participation of leaders of the city government to simplify related administrative procedures.