In the past 6 months, despite the impacts of the COVID-19 pandemic, the industrial real estate market still witnessed many positive signs such as mergers and acquisitions deals, an increase in land areas. new industry…
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Vibrant Northern Area
According to the Ministry of Planning and Investment, by June 20, 2021, Vietnam has attracted US$15.27 billion in total foreign investment. The manufacturing and processing sector attracted a total of USD 6.97 billion (accounting for 45% of the total investment capital), with 273 new projects with an investment capital of USD 3.09 billion and 286 existing projects with an increase of 3. $38 billion.
Mr. John Campbell, Savills Vietnam Industrial Real Estate Manager, said that the Northern region received the majority of newly registered investments in the manufacturing sector up to US$1.97 billion, accounting for 64%. market share. Followed by the Southern region with USD 728 million (23%), while the Central region attracted USD 395 million (13%).
In terms of provinces, Bac Giang has the highest newly registered capital with 589 million USD, followed by Quang Ninh with 569 million USD and Bac Ninh with 222 million USD. The representative of the southern region, Binh Duong, ranked 4th with 208 million USD.
In terms of investors, the largest production projects in the first 6 months of 2021 are those of Jinko Solar and Fukang Technology from Hong Kong (China) and Singapore, with an investment capital of 498 million USD and 270 million USD respectively. USD in Quang Ninh and Bac Giang.
The market also witnessed a number of new M&A deals in the first 6 months of 2021. Typically, Boustead Projects Co., Ltd. has reached an agreement to buy back a 49% stake in KTG & Boustead Logistics Industry Joint Stock Company.
If successful, this partnership will bring up to 13 properties (10 of which belong to KTG and 3 belong to Boustead Projects) with a total asset value of up to USD 141 million, including approximately 840,000 square meters. land area and about 550,000m2 total rental area.
ESR Cayman Limited (the largest logistics real estate platform in Asia-Pacific) and BW Industrial Development JSC (developer and operator of industrial and logistics real estate in Vietnam) have joint venture to develop 240,000 square meters of industrial real estate in My Phuoc 4 Industrial Park. This partnership marks the entry of ESR Cayman Limited into the Vietnamese market, expanding the group’s scope of activities. This in Southeast Asia is growing.
Regarding new projects, Logos Property’s 81,000m2 project in VSIP Bac Ninh 1 Industrial Park is expected to come into operation in the fourth quarter of 2021. A relatively new investor in the market is Vietnam Industrial Park Group Joint Stock Company, which has acquired a 250ha land bank with an investment of 300 million USD. The company aims to develop sustainable, high-end factories and warehouses for lease in Vietnam with a portfolio spanning the country from Bac Giang, Hai Phong, Hai Duong to Dong Nai and Long An.