Industrial real estate "transforms" to welcome the 4th FDI wave

In the face of the fourth wave of FDI, “building nests” to welcome “eagles” is becoming an urgent task, especially in the context of investors becoming increasingly strict with the quality standards of new projects.

The inevitable trend of the industrial real estate segment

“We must focus on building ecological industrial parks. Now investors are ‘running around sweating’ everywhere offering rental prices of 500 USD/m2 but no one has land for rent. If existing industrial parks are adjusted and upgraded to ecological industrial parks, rental prices could increase by one and a half or double,” said Mr. Nguyen Thien Tuan, Chairman of Construction Development Investment Corporation, at the 2024 annual shareholders’ meeting.

Ecological models are 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, Director of Sales and Marketing 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 the investment model that the company uses to promote to 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. Investors’ tastes are 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 change, can industrial parks create a difference in competitive advantage.

“The construction and conversion 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 Planning and Investment .

Before the 4th wave of FDI investment, Mr. Quan said that the ecological model is a "magnet" attracting foreign enterprises. And to increase the attraction of this magnet, the Ministry of Planning and Investment has proposed a strategy to build 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, etc.

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 nationwide will have plans to convert existing industrial parks into ecological models. Of which, 8-10% of localities have orientations to build this type from the step of planning construction and orienting industries and occupations to attract investment.

Many "problems" have no solution

However, the above target figures 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, changes in the organization's management methods; criteria for measurement and monitoring according to ESG standards or specialized personnel to implement... are still a large gap that has not been filled.

In addition, information about ecological industrial parks has not been widely communicated to businesses. According to the Vietnam Federation of Commerce and Industry (VCCI), a survey of 118 industrial parks showed that up to 50% of businesses have never heard or known about the concept of sustainable industrial parks and only about 30% of businesses have heard or 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), the global minimum tax rule will affect the need to attract FDI capital to Vietnam. This is an agreement with the participation of more than 140 countries with a minimum tax rate of 15% applied to multinational corporations with total revenue of 750 million euros or more.

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

With the motto of accompanying businesses and investors, Dau Tu Newspaper always listens and worries about the difficulties and problems of the community. This is the great motivation for Dau Tu 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 "Greening to welcome new investment waves".

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

Source: https://baodautu.vn/batdongsan/bat-dong-san-cong-nghiep-chuyen-minh-don-song-fdi-thu-4-d217316.html