Many companies from Europe, South Korea, Japan and China have included investing in building manufacturing facilities in Vietnam in their corporate strategies, which is expected to boost the development of the factory and other industrial real estate segments.
Expectations for investment in industrial zones around Ho Chi Minh and Hanoi!
The Government's Decree No. 82/2018/ND-CP on the Management of Industrial and Economic Zones, which came into force on 10 July 2018, regulates the planned development of service areas around industrial cities such as Ho Chi Minh City. For real estate investors who have already invested in industrial zones around cities such as Ho Chi Minh City and Hanoi, the shrinking of available land for development has created an opportunity to grow their investments.
A real estate expert in Ho Chi Minh City said the current measures will help resolve housing problems for workers and ensure decent living conditions in industrial parks.
According to development plans approved by the Vietnamese government, the area of land set aside for industrial development is expected to double by 2020.
At its most recent regular meeting, the government reported that it would continue to closely oversee major public projects, citing the manufacturing and processing industry as a driver of economic growth and helping to alleviate key issues such as a lack of infrastructure.
Ministries and agencies in Ho Chi Minh City and Hanoi have been tasked with facilitating investment by processing companies and investors. Former Minister of Natural Resources and Environment Dung Hung Vo said the industrial property sector should take advantage of the measures and act to increase capital values.
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