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| A factory in Long Thanh Industrial Park, Dong Nai Province. — Photo szl.com.vn |
HOI NOI — Traditional industrial zones are gradually losing their competitiveness and being replaced by industrial zones that prioritize green and sustainable elements, making them more attractive to investors, experts say That's what it means.
The development of green industrial zones involves participating in cleaner production activities and minimizing negative impacts on the environment, with the aim of achieving zero carbon emissions by 2050. Building green industrial zones to attract investment in green industries is a global trend.
From a management perspective, Deputy Minister of Planning and Investment Nguyen Thu Bich Ngoc said that the transition to a green and circular economy in industrial and economic zones will strengthen competitiveness and improve the efficiency of each specific region and the economy as a whole. He said that this is an important element in ensuring sustainable development. .
With 403 industrial zones in operation, promoting the development of eco-industrial zones will mobilize significant resources from the private sector to introduce green industrial solutions, ensure energy security, and combat climate change in Vietnam. This will greatly contribute to mitigation efforts.
This reflects the Vietnamese government's strong political commitment towards sustainable development and promotes green growth and circular economy practices.
According to the Ministry of Planning and Investment's 30-year summary report on industrial and economic zone development, by 2030, 40 to 50 percent of local governments have plans to convert existing industrial zones into environmental industrial zones, and 8 to 10 % of local governments are planning to transform into eco-industrial zones. The local percentage will aim to establish a new eco-industrial zone, starting with the construction planning and industry-specific investment attraction stages.
It is clear that the focus is on the construction of new eco-industrial zones and the transformation of traditional industrial zones into eco-industrial zones at the same time.
MB Securities JSC (MBS) observes a trend of investment funds moving to secondary markets away from major cities due to high supply and low rental prices.
Despite facing new challenges, there are several supportive factors for industrial real estate development. Currently, India and Indonesia are Vietnam's biggest competitors in attracting foreign direct investment (FDI) in high-tech sectors.
Nevertheless, the country retains a competitive advantage thanks to concluded trade agreements and attractive labor and electricity prices. Strengthening the strategic partnership with the United States will also help attract investment in high-tech development.
In the northern region, there is a noticeable trend of FDI funds flowing into the secondary market. For example, Quang Ninh province has attracted over US$3.1 billion in FDI, ranking third in the country in 2023. The $1.5 billion Jinko Solar Haiha solar cell project stands out as a prime example.
Bac Giang Province also succeeded in attracting $3 billion in FDI, 2.5 times more than last year, with the Hanamikron Vina 2 semiconductor production project contributing $600 million.
The share of FDI inflows into the secondary market shows a significant increase from 20% in 2018 to 53% in 2023.
This can be attributed to the lower rental prices of industrial land compared to the primary market in major cities, and the availability of abundant commercial land with a market share of only 64% in the secondary market. You can
In the southern region, the proportion of FDI capital flowing into the secondary market in 2023 will trend upward, rising from 21.6% in 2022 to 23.2% in 2023.
Balea-Vung Tau province has attracted over $1 billion in FDI, including a $540 million investment in Hyosung Vietnam's textile and carbon materials production project.
Vinh Phuc Province successfully attracted more than 40 FDI projects with a total investment of $758 million, an increase of 3.4 times compared to 2022.
This growth is mainly driven by the availability of industrial land for rent, as the primary market has a share of 90 per cent, while the secondary market has a share of only 63 per cent. Ta.
Additionally, the rental price in the secondary market is only half of what it is in the secondary market.
By the end of 2023, Vietnam's total industrial land area will reach 89,200 hectares, an increase of 1.5% compared to the end of 2022, mainly due to the growth of the northern market.
The total area of leased industrial land reached approximately 51,800 hectares, an increase of 5.7% compared to the end of 2022, and the occupancy rate was approximately 57.7%.
In particular, the occupancy rate of active industrial zones reached approximately 72.4%. Rental prices in the southern region remained stable at $168 per square meter, while rental prices in the northern region increased by 10% to $123 per square meter from the end of 2022.
MBS believes that the future prospects for the industrial park industry are driven by stable macroeconomic conditions and improved relations with major countries, allowing the momentum of FDI growth to be maintained.
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However, new challenges will arise, such as increased competition with other countries and the risk that power shortages will affect production.
Companies with significant clean land funding and strong financials have long-term growth potential.
SSI Securities Corporation said FDI capital disbursements to Vietnam reached $23.2 billion last year, an increase of 3.5% year-on-year, mainly focused on manufacturing industries.
Meanwhile, total foreign direct investment commitments in 2023 increased by 24.4% from the previous year to $28.1 billion.
As a result, the brokerage firm expects FDI capital to continue to grow in 2024, especially in manufacturing (manufacturing and semiconductor companies) and renewable energy.
SSI has announced that a number of listed industrial park investors have signed memorandums of understanding (MOU) to lease industrial land to new tenants in the second half of 2023, and these MOU agreements will be converted into formal contracts and recorded as revenue in 2024. He said that there is a high possibility that it will be done.
Regarding industrial parks in the north, demand for land rental in industrial parks is expected to increase in 2024 due to the trend of relocating production bases to Vietnam, mainly in the electronics and semiconductor industries.
Industrial parks in the south may record a technological recovery from low levels in 2023, and the main businesses that lease industrial land are manufacturing (textiles, timber, footwear), logistics, food and beverages, etc.
Thanks to the favorable business environment, many industrial real estate companies reported strong profits in 2023.
For example, Becamex (BCM) will have sales of about VND8.2 trillion in 2023, up about 25% year-on-year, and profit after tax of over VND2.3 trillion, the highest since 2020. reported that the standard has been reached.
Sonadezi Long Thành (SZL) had net revenue of VND441 billion and profit after tax of VND104 billion last year, up 7% and 4% year-on-year, respectively. Meanwhile, Sonadezi ChâuĐức (SZC) recorded his profit of VND 218.87 billion in 2023, an increase of 10.89% year-on-year.
Thanks to strong performance, industrial real estate stocks have also performed well recently, with SNZ up 22.74%, SZC up 8.52% and Saigon VRG Investment Corporation (SIP) up 22.74% in the week ending February 2nd. IDICO Corporation (IDC) rose 7.37%, BCM rose 4.44%, and SZL rose 1.96%. —VNS
