Industrial property market thriving in city

The industrial property market in Viet Nam, including industrial land, ready-built factories, warehouses, and other logistics properties, is in the nascent stage of development, making the country more inviting to domestic and foreign investors.

An artist’s impression of a complex of factories for lease to businesses operating at the Da Nang Hi-tech Park

However, the question raised here is how to fully tap the potential of this lucrative market as many businesses operating in the country have mainly accessed land allocation by the State, land lease offered by the investors of the industrial parks (IPs), and land-transfers.

According to the latest report released by Savills, Viet Nam’s largest real estate service provider, about the real estate market in the 2nd quarter of this year, the industrial property market is now attracting a great deal of attention from businesses for its great development potential.

In particular, investment capital, production and processing activities have accounted for 44.2% of the list of FDI attracting aspects.

In Da Nang, many investors are embarking upon industrial property investment activities in the Hoa Cam and Lien Chieu IPs in an attempt to initially meet the growing demand amongst enterprises for land for the purpose of their production and business activities.

Many local economic experts pointed out to the fact that the exploitation of the industrial property market mainly relies on business premises leases, instead of increasing the value of industrial property and providing value-added services for supporting corporate production activities.

According to the municipal Department of Planning and Investment, in line with the city’s project for making adjustments to the development of IPs by 2020, the city is completing the procedures for the establishment of 3 new IPs, namely the 2nd phase of the Hoa Cam IP covering a total area of 125.14ha, the 405.5ha Hoa Nhon IP, and the 400ha Hoa Ninh IP.

Last year, the Authority of the Da Nang Hi-tech Park granted an investment licence to the Hi-tech Investment and Service JSC to build a complex of factories for lease to businesses operating in the Park.

Covering an area of 7.7ha in the Park located in Hoa Vang District’s Hoa Lien Commune, and with a 50-year operation term, the 339 billion VND (equivalent to nearly 15 million USD) project will be divided into 2 stages.

The 1st stage, covering an area of over 31,500m2, will focus on constructing 4 factories, a garage, 2 guard houses, an electricity substation, a garbage storage area, a waste water treatment plant, a pumping station, and water tanks for fire fighting.

Under the 2nd stage, covering an area of 18,500m2, another 3 factories, 2 garages, an electricity substation, a garbage storage area, and a parking area will be built.

The Hi-tech Investment and Service JSC specialises in building facilities for lease to businesses in the Park, along with installing machinery and industrial equipment for them if needed.  In addition, the company is offering its maintenance and repair services for the leaseholders.

Source: DA NANG Today