Vietnam’s coastal economic and industrial zones are set to become potential investment destinations for both local and foreign enterprises looking to expand their operations.
|Coastal real estate at Phu Yen province.|
A recent study on industrial real estate from CBRE suggested there is huge investment demand for coastal economic and industrial zones in China and Thailand. As such, coastal areas in Vietnam are set to receive the same attention in the near future.
Under this context, Vietnam’s coastal localities such as Hai Phong and Quang Ninh in the North are focusing on expanding the industrial land resources.
Recently, Hai Phong, one of the largest industrial centers in Vietnam, is home to major industrial estate development projects, including the construction of industrial parks DEEP C Hai Phong II and III, as well as those from Vinhomes, the real estate arm of conglomerate Vingroup.
Quang Ninh, on the other hand, has emerged as a coastal industrial province, with a focus on manufacturing and processing. Investors of industrial parks in the province are receiving the best tax incentives, as well as receiving financial support to train their workforce within the first two years of receiving the investment license.
Owners of industrial parks are entitled to enjoying the lowest rate of land rental fee in the first five years, 30% of advanced payment in compensation fee for site clearance process, and 30% of financial support for the construction of waste water treatment system.
At present, Quang Ninh's authorities are speeding up the construction of the Van Don – Mong Cai expressway to reduce the travel time to nearly three hours to China’s border gate, which is set to be completed by end-2021.
Meanwhile, other expressways connecting Hanoi, Hai Phong, Quang Ninh, major ports and international airports have all been completed.
Attractive investment channel in post-crisis period
In the Southeast Asian region, Vietnam is considered to have high potential for tourism development, thanks to the country’s long and beautiful coastal lines. As the Covid-19 pandemic is gradually contained, the number of foreign and domestic tourists to coastal provinces are predicted to surge once inter-provincial transport infrastructure systems are upgraded along with high living standards.
An executive of Danh Khoi Real Estate Service Company said it is an inevitable trend that demand for coastal real estate would go up, referring to recent investments by major corporations such as Vingroup, Sungroup, FLC, and Phat Dat, among others, in coastal real estate in the central region.
Over the time, landed property remains an attractive investment channel, especially as the real estate market has witnessed investors reaping huge benefits in the post-crisis period.
- Vietnam among top advancers in Global Real Estate Transparency Index
- Demand for industrial real estate remains high as more companies relocate to Vietnam
- Vietnam set to become shelter for foreign real estate investment post-Covid-19
- US$8.3 billion poured into Vietnam's industrial parks and economic zones in 10 months