The report, recently released by real estate firm CBRE, notes that coastal provinces in neighboring countries like China and Thailand have always had great demand for industrial real estate, attracted a lot of investment, and recorded high occupancy rates as well as rents.
In Vietnam, the northern localities of Hai Phong and Quang Ninh have been taking advantage of available potentials to develop industrial real estate, and the CBRE report detects a similar trend in other coastal provinces.
Hai Phong City is one of the biggest industrial hubs in Vietnam, with major projects such as DEEP C II and III and Vinhomes’s new industrial zones. As of Q3, the city had recorded an average occupancy of 56 percent and seen recent launches of big industrial parks.
Quang Ninh Province, meanwhile, is expected to provide a large industrial land bank in the future, with the two Quang Yen and Van Don economic zones. The Quang Yen coastal economic zone is expected to become a growth engine, drawing investment to the province.
To attract investors, Quang Ninh has prioritized the development of processing and manufacturing industries. Secondary investors will have the highest corporate tax incentives in economic zones and receive short-term vocational training subsidies for employees for the first two years.
Travel fees for joining national and international trade fairs and conferences will also be discounted by up to 50 percent, and fees for promoting products and services on the Quang Ninh Portal and on the website of Quang Ninh Economic Zone Authority will be discounted by 15 percent.
Industrial park infrastructure investors will have the lowest land rent for five years. They will also receive in advance 30 percent of the compensation costs for site clearance and upon completion of construction, 30 percent of the investment for a wastewater treatment system for a maximum incentive of VND30 billion ($1.29 million).
By Q3, the total land for industrial development in the five main industrial cities and provinces in the north of the country, including Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong, was 13,800 ha. Of this 9,600 ha was leasable industrial land. The average occupancy rate at industrial parks remained at a positive 79 percent. Industrial zones in Hanoi, Hai Duong and Bac Ninh have an average occupancy rate of about 90 percent.
In the south, the total industrial land area is nearly three times as much at about 38,000 ha, of which 24,000 ha of leasable industrial land in Ho Chi Minh City, Binh Duong, Long An, Dong Nai and Ba Ria-Vung Tau have an average occupancy rate of nearly 77 percent.