The development of the semiconductor industry is expected to have a direct impact on the industrial real estate sector thanks to the increased demand for factories that meet infrastructure and service requirements.
Plan to catch the wave
Mr. Truong An Duong, Director of Residential Real Estate, Frasers Property Vietnam, said that the initial model of industrial park development was to build basic infrastructure and then lease out the subdivided land. However, in the coming time, the demand for production types as well as research and testing centers, even exhibition and conference centers in industrial parks will be higher. In addition, new industries such as e-commerce with data and technology infrastructure requirements also require changes in industrial park planning.
Without sharing specific strategies, Mr. Duong said that Frasers Property Vietnam is researching to establish research centers to serve the semiconductor industry and is preparing land funds to serve these needs, at least for the next 5-10 years. This shows that industrial real estate developers have been preparing resources, especially in the context that Vietnam is becoming an investment hotspot for the semiconductor industry.
Semiconductor chip manufacturing is positioned as a new driving force for Vietnam to become a prosperous country. Savills Vietnam forecasts that by the end of 2024, Vietnam's semiconductor industry will exceed the value of 6.16 billion USD, making Vietnam one of the important production centers for many global semiconductor enterprises.
Some semiconductor chip companies from the Netherlands have also begun investing in Vietnam. Specifically, BE Semiconductor Industries NV has received an investment certificate in the Ho Chi Minh City High-Tech Park, with an investment capital of more than VND115 billion in the first phase, to invest in renting factories and production.
Recently, Foxconn - the world's largest contract electronics manufacturer, announced the establishment of a legal entity to implement a project worth over 383 million USD in the Nam Son - Hap Linh Industrial Park, Bac Ninh province. This is a project to produce, assemble and process printed circuit boards (PCBs) with a total capacity of 2.79 million products/year, a total area of 14.26 hectares, and a total investment of over 9,400 billion VND (equivalent to 383.3 million USD).
Improve the quality of industrial parks
According to Mr. Thomas Rooney, Senior Manager of Industrial Leasing Department of Savills Vietnam, the demand for investment in semiconductor production and assembly has led to an increase in the search for factories and industrial parks that meet the infrastructure and service requirements of the semiconductor industry. Some basic requirements from businesses include: stable power source, high-speed Internet and efficient water treatment system, thereby requiring investors in Vietnam to upgrade the quality and factory system.
While the tenants of industrial real estate in the southern provinces are in the rubber, plastic, food and beverage processing industries, in the north, they are mainly businesses operating in high value-added industries such as computers, electronics or electrical products. Therefore, according to Mr. Thomas Rooney, when the wave of investment in semiconductors develops, it will create more momentum for the development of industrial real estate in the north.
Savills Vietnam experts believe that in order to attract capital into the semiconductor industry and industrial real estate, localities and businesses need to improve their policy mechanisms, infrastructure and human resources to best meet the strict demands of this particular industry. “The semiconductor industry requires a huge amount of electricity. Therefore, Vietnam needs to accelerate large-scale energy infrastructure projects,” said Mr. Thomas Rooney.
In Ho Chi Minh City, to prepare for the wave of foreign investment, especially in the semiconductor chip industry, Mr. Hua Quoc Hung, Head of the Management Board of Export Processing Zones - Industrial Parks of Ho Chi Minh City, said that the City has reviewed the overall status of industrial parks and export processing zones, thereby converting towards developing ecological industrial parks and high-tech industrial parks through technological innovation, increasing added value and being environmentally friendly.
With some newly built industrial parks such as Le Minh Xuan 3, Pham Van Hai..., construction is carried out according to the models of specialized industrial parks, ecological industrial parks, supporting industrial parks, high-tech industrial parks, industrial - urban - service parks. Ho Chi Minh City also coordinated with the Ministry of Planning and Investment , the United Nations Industrial Development Organization (UNIDO) to pilot the conversion of Hiep Phuoc Industrial Park into an ecological industrial park, and at the same time deploy a new high-tech industrial park and supporting industry for high-tech development.
The 4th Vietnam Industrial Real Estate Forum 2024, organized by Investment Newspaper under the auspices of the Ministry of Planning and Investment and the coordination of the Vietnam Industrial Real Estate Association (VIREA), will take place at Mai House Saigon Hotel, Ho Chi Minh City on Tuesday, July 30, 2024.
With the theme “Greening to welcome new investment waves”, the Forum will focus on assessing the prospects and new challenges for the Vietnamese industrial real estate market; in-depth discussions on issues related to green transformation in industrial parks, towards building green industrial parks and ecological industrial parks to attract new investment projects, especially large-scale, high-tech projects from global corporations.
For more information about the Forum, please visit: https://vipf.vir.com.vn/
Source: https://baodautu.vn/batdongsan/bat-dong-san-cong-nghiep-don-song-ban-dan-d218922.html
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