The ready-built factory segment of Hai Phong Industrial Real Estate is attracting many infrastructure investors’ attention due to the increasing demand. However, the development orientation of this segment should be carefully evaluated based on investor capacity and investment attraction orientation.
As one of the infrastructure investors in the Industrial Park (IZ) with a prime location in Hai Phong city (Nam Dinh Vu Industrial Park) – Sao Do Group is seeing a demand from partners for ready-built factories. in industrial zones. Mr. Nguyen Thanh Phuong – General Director of Sao Do Group shared around this issue.
What do you think about the current domestic industrial land fund, as well as the trend of small and medium-sized FDI enterprises in the global supply chain to move to Vietnam?
As far as I can see, Vietnam’s industrial land fund is still increasing. However, the large land fund to serve global investors like Samsung, or LG is not as much as before. Vietnam is also expecting to receive “eagles”. We only need to catch a few “eagles” like LG or Samsung from the new wave of investment shift, which is a huge success. Because, behind these big investors will be businesses in their global supply chain to follow. The domestic industry will have a great opportunity if it can cooperate with investors in the global supply chain of these large corporations.
To seize this opportunity, industrial park infrastructure investors and local authorities need to be very well prepared in terms of clean ground, synchronous infrastructure, and improving the quality of human resources. … Moreover, in the current trend of investment attraction, investors should aim to build models of integrated industrial parks, ecological industrial zones, etc. to suit the needs of investors and orientation. attract foreign investment in the coming period.
In your opinion, what impact has this had on the trend of industrial real estate investment in Vietnam?
After 30 years of development, industrial zones and economic zones (EZs) have increasingly become favorable models to attract investment, including both domestic and foreign investment. However, for industrial zones to receive the shifting investment capital at this time, it is a different story.
Recently, ready-built factories and warehouses are developing rapidly. This also partly reflects the fact that Vietnam is the destination of many global production chains. These ready-made factories and warehouses are to serve small secondary investors – which are ancillary businesses in the production chain of large corporations that are and will be setting up factories in Vietnam.
CBRE’s latest industrial real estate market report also shows that 2020 is the time of ready-made factories and warehouses in Vietnam. During the Covid-19 outbreak months, the demand for ready-built warehouse rentals spiked while the rental requirements of other types of industrial real estate slowed down or decreased due to social isolation. The supply of ready-built factories continued to grow in all 3 regions.
So, according to you, ready-built factories will become the trend of industrial real estate investment in Vietnam?
Currently, many manufacturers have a need to rebuild the global supply chain, while aggressively promoting plans to relocate production facilities from China. They want to move to countries with low cost, more stable environment and especially still close to the Chinese market. Vietnam is considered to benefit from this trend with a huge plus coming from good control of the pandemic. Along with the maximum support from infrastructure investors, policies to support the economy and the market from the Government also have many positive signals.
In that shifting context, small and micro enterprises or are intending to research and penetrate the market, they are very fond of ready-built factories and warehouses. This helps investors reduce a lot of costs in terms of time and finance and quickly go into production.
However, investors need to consider and limit the attraction to investors who are micro enterprises that cannot afford to rent clean premises and build factories. Or investors who do not intend to invest for a long time, are in the market exploration phase to see how far they can penetrate. And when there is volatility, they will move easily.
What about Sao Do Corporation? How is Sao Do’s view of industrial real estate development shaped in the new context, sir?
We clearly define the needs of our customers with ready-made factories and warehouses. Therefore, we have cooperated with BW Industrial Development Joint Stock Company to deploy the construction of a system of ready-built factories. However, our biggest priority is still to lease clean premises, targeting investors with good capital flow, high technology to attract investment.
To meet the rental requirements in the new context, we are constantly improving the services and facilities in the area so that investors can minimize costs and optimize profits. In addition, legal support services, looking for labor resources, etc. are always what make investors feel secure from the stage of investment research.
