Transport infrastructure is the 'lever' for industrial real estate in Binh Phuoc

New FDI attraction center of the South

With its strategic position in the new economic corridor of the Southern key economic region, and at the same time being the gateway between the Mekong Delta and the Central Highlands, Binh Phuoc is showing strong potential for economic and social development. Especially in recent times, Binh Phuoc's strengths have also been enhanced as the transport infrastructure has been continuously developed.

In particular, the most noteworthy are the 3 expressways connecting from Chon Thanh, which will turn this province into an important area in connecting economic zones. First of all, the Ho Chi Minh City - Chon Thanh expressway project, one of the important national projects, a key project of the Transport sector. This expressway stretches from Ho Chi Minh City's Ring Road 3 to Binh Phuoc province, with a length of about 60.4km, expected to be implemented from 2023 to 2026.

Next, the Prime Minister also requested the Ministry of Transport to urgently complete relevant procedures for the Chon Thanh - Duc Hoa expressway (73km) to start construction in the fourth quarter of 2023, completing it in 2025. The Chon Thanh - Duc Hoa section project has a total investment of VND 2,300 billion, with a total length of about 73 km.

Traffic infrastructure is a stepping stone for industrial real estate in Binh Phuoc, picture 1 — Developed transport infrastructure has helped Binh Phuoc attract FDI capital.

Finally, the Chon Thanh – Gia Nghia expressway (128.8km) also received attention and continuous progress promotion from the Government. This route has a total investment of nearly 26,000 billion VND, which is significant in connecting the Southeast region through Binh Phuoc with the Central Highlands.

With future advantages and existing infrastructure, Binh Phuoc is one of the southern provinces attracting a lot of FDI capital. According to statistics, in September 2023, the province granted 5 new projects with a capital of 16.13 million USD; Adjusted 15 projects, of which 3 projects increased capital with an increased capital of 16.5 million USD.

In the first 9 months of 2023, the total FDI attraction including new and additional investment was 743.01 million USD, 2.47 times higher than the plan. Among them, there are enterprises that have invested in Binh Phuoc with registered capital of up to half a billion USD such as Shandong Haohua Tire. Data released by the People's Committee of Binh Phuoc province in early 2023 also showed that the whole province has 375 FDI projects with a total investment capital of nearly 4 billion USD.

Take advantage to promote industrial real estate development

In recent times, in addition to promoting infrastructure, Binh Phuoc has also focused on improving the business environment and enhancing provincial competitiveness. In 2022, Binh Phuoc's CPI score increased sharply by 2.15 points, ranking up 7 places. In 2023, the province is also implementing many synchronous solutions to improve by 5 places. At the same time, the province also determined to accelerate the disbursement of public investment capital and investment procedures for key projects.

Another advantage of Binh Phuoc comes from its abundant human resources with a large proportion of the working-age population, which is considered to be in the golden population period. This can be considered a unique advantage of Binh Phuoc compared to other localities as well as the whole country.

With the advantages and development orientation of Binh Phuoc, many opinions believe that in the coming time, the real estate market here will create new surprises, especially with industrial real estate. Especially in the context of industrial parks in neighboring provinces such as Dong Nai and Binh Duong having high occupancy rates and rental prices. Some investors have moved to Binh Phuoc province to invest with large land funds, clean premises and low rental prices, about 80 - 90 USD/m2 for 50 years.

Traffic infrastructure is a stepping stone for industrial real estate in Binh Phuoc, picture 2 — The competitive strengths of Binh Phuoc industrial real estate are rental prices and labor resources.

Currently, Binh Phuoc has 15 industrial parks (IPs) approved by the Prime Minister, of which 12 IPs are attracting investment with an average occupancy rate of over 68% (and 3 IPs are investing in infrastructure construction).

In addition, Binh Phuoc province has been approved by the Prime Minister to expand 3 industrial parks with an area of 1,375 hectares (Bac Dong Phu Industrial Park 317 hectares; Nam Dong Phu Industrial Park 480 hectares; Minh Hung III Industrial Park 578 hectares) to be completed in 2023. Besides, Hoa Lu border gate economic zone with an area of 28,000 hectares is ready to meet the needs of investors. In addition, the provincial planning has been appraised by the ministries and branches and the province's policy is to open new industrial parks, planning for about 10,000 hectares by 2030 (including Dong Nam Dong Phu Industrial Park with an area of 4,200 hectares).

With the above advantages and goals, Binh Phuoc hopes to become one of the major industrial capitals of the country after Binh Duong. The goal is to become a modern industrial province by 2030 and complete by 2045.

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