Industrial real estate “transforms” to welcome the 4th wave of FDI

Before the 4th wave of FDI, “building a nest” to welcome “eagles” is becoming an urgent task. Especially in the context that investors are increasingly strict with the quality standards of new projects.

The inevitable trend of the industrial real estate segment

“We must focus on making ecological industrial parks. Now investors are “running sweat” everywhere offering rental prices of 500 USD/m2 but no one has land to rent. If existing industrial parks are adjusted and upgraded into eco-industrial parks, rental prices can increase one and a half or double,” said Mr. Nguyen Thien Tuan, Chairman of Construction Development Investment Corporation. annual general meeting of shareholders in 2024.

The ecological model is becoming an “inevitable” development goal of industrial parks. Photo: Dung Minh

Another “big guy” in the industry, DEEP C, has also clearly shown its ambition for the eco-industrial park segment. According to Mr. Koen Soenens, Sales and Marketing Director of DEEP C, the industrial real estate segment does not simply revolve around selling land, but also focuses on developing new projects according to a sustainable model. . This will become an investment model used by the company to promote foreign businesses in the future.

According to Mr. Dao The Anh, Chairman of RSL Group, the ESG trend is a “survival” race in industrial real estate. Investor appetite is becoming more and more demanding, as countries in the region such as Indonesia, Malaysia or India also have attractive investment attraction factors, even more than Vietnam. Only when there is a transformation can industrial parks create a difference in competitive advantage.

“Building and converting to an ecological industrial park model is an urgent requirement and an inevitable trend in current industrial development,” said Mr. Le Thanh Quan, Director of the Department of Economic Zones Management , Ministry of Industry and Trade. Planning and Investment comments.

Before the 4th wave of FDI investment, Mr. Quan said that the ecological model is a “magnet” to attract foreign businesses. And to increase the attraction for this magnet, the Ministry of Planning and Investment has launched a strategy to develop the Law on Industrial Parks and Economic Zones. 

In the law, the “architects of the economy” have built 6 groups of support policies. Particularly, eco-industrial parks will enjoy incentives related to taxes, fees, financial policies , capital… 

In the report summarizing 30 years of industrial park and economic zone development by the Ministry of Planning and Investment, by 2030, about 40 – 50% of localities across the country will have plans to convert existing industrial parks. to the ecological model. Of these, 8 – 10% of localities have the orientation to build this type from the stage of construction planning and orienting industries and professions to attract investment.

Many “problems” remain unsolved

However, the target numbers above will not be easy to realize. According to RSL Group, applying ESG to industrial park projects currently faces many difficulties, related to initial investment capital for technology and equipment. 

In addition, the change in the organization’s management style; A set of measurement and monitoring criteria according to ESG standards or qualified personnel to deploy… is still a large gap that has not been filled.

Besides, information about eco-industrial parks has not been strongly communicated to businesses. According to the Vietnam Confederation of Commerce and Industry (VCCI), a survey of 118 industrial parks showed that up to 50% of businesses have never heard or known the concept of sustainable industrial parks and only about 30 % of businesses have heard and understood this concept.

From a more general perspective, not only eco-industrial parks, but the entire industrial real estate segment in general is still facing many challenges.

According to a report by Agribank Securities Company (Agriseco), global minimum tax rules will affect the need to attract FDI capital into Vietnam. This is an agreement with the participation of more than 140 countries with a minimum tax rate of 15% for multinational corporations with total revenue of 750 million euros or more.

The next difficulty is related to infrastructure quality and associated investment costs, such as lack of electricity and waste treatment systems. Not only that, the supply of new projects in 2024 may still be limited, due to some problems with compensation for site clearance and legal procedures.

With the motto of accompanying businesses and investors, Investment Newspaper always listens and worries about the difficulties and problems of the community. This is the great motivation that urged the Investment Newspaper to organize the Vietnam Industrial Real Estate Forum . In 2024, the Forum will be held in Ho Chi Minh City on July 30 with the theme “Going green to welcome new investment waves”.

After 3 years of successful organization, the event has become a prestigious connection place between policymakers, reputable experts and business leaders. Through the forum, many bottlenecks were discussed and solutions analyzed. In 2024, the event promises to become even more attractive with the arrival of the 4th wave of FDI and semiconductor technology trends.

Baodautu.vn