Real estate investors go hand in hand with industrial manufacturers towards provinces and cities with cheap land prices but convenient transportation.
The leader of a business surprised many people in the real estate investment world when he showed a drawing of a twin tower project with more than 1,500 apartments about to start construction in the center of Viet Tri city.

Surprisingly, Viet Tri has always been a new land for real estate investors and with a height of up to 36 floors, the project that this business is pursuing will become a high-rise real estate project. The largest scale floor of the city in the Northern midland and mountainous region.

Viet Tri is better known for the historical Hung Temple area – which attracts millions of tourists each year, but this business leader said that the decision to invest in this city did not entirely come from from the number of tourists but based on the main development direction of Viet Tri as well as Phu Tho province in the coming time.

The development direction that he hopes will create demand for high-quality housing is the movement of investment capital in industrial production, in which he expects Viet Tri in particular and Phu Tho in general to take advantage of this opportunity. New opportunity to attract manufacturers to build factories.

Capital flows redirected

Having invested in a housing project in Bac Ninh – one of the new industrial centers in the North, this business leader said he realized that Vietnam is attracting very strongly industrial manufacturers. foreign countries and this capital flow is moving to provinces and cities with large land, cheap land rent, abundant human resources but not too high wages and convenient transportation infrastructure.

Among them, provinces that previously received little attention such as Nghe An, Phu Tho or Thai Binh are now in the sights of industrial manufacturers.

This opinion also coincides with the views of Savills experts. The consultancy is seeing an increasing number of site visits from multinational manufacturing, logistics and e-commerce businesses, reflecting growing demand for industrial products.

In addition, Mr. John Campbell, Head of Industrial Real Estate at Savills, said that Vietnam is still attractive to industrial manufacturers thanks to its young and dynamic workforce, competitive labor costs, and economic environment. Vietnam’s export-oriented economy, stable business environment, geographical location, and active participation in free trade agreements.

Demand is great so the rental rate of industrial parks is very high, of which the Northern key provinces reached 83% and the Southern key provinces reached 91%.

Capital flows into the industrial sector in the North also tend to increase due to the developed road network, strengthening connections between Hanoi and key industrial provinces, and three large seaports helping to create Favorable links to international markets such as Korea and China, thereby strengthening the region’s industrial competitiveness.

However, due to high demand, industrial land rental prices in some large industrial centers have skyrocketed, with the average land rental price reaching 138 USD/m2/rental period, up from 102 USD.

Industrial park rental prices in provinces with favorable transportation and industrial development such as Bac Ninh, Hai Duong, and Hai Phong increased too quickly, of which rental prices in Bac Ninh increased by 48% over the same period last year and reached 156 USD/m2/rental cycle, forcing some manufacturers to look to areas with cheaper rent.

Welcoming this shifting trend, provinces such as Thai Binh or Phu Tho have also planned large industrial parks. In particular, Phu Tho plans to develop 7 industrial parks with an area of ​​2,256 hectares and 28 industrial clusters with 1,470 hectares. Industrial zones and clusters are located in places with convenient transportation by road, waterway, railway, easy to trade with Hanoi, Hai Phong port, Northwest provinces and Yunnan – Central provinces. Quoc.

Phu Tho currently has four industrial parks in operation, attracting 193 secondary investment projects, including 100 domestic investment projects with registered capital of 22,000 billion VND and 93 projects with direct investment capital. foreign countries with registered capital of more than 1.9 billion USD.

In the first 9 months of 2023, businesses operating in industrial parks in Phu Tho are estimated to achieve revenue of 25,500 billion VND, an increase of 10% over the same period last year, creating jobs for 29,870 workers with average income. about 7.1 million VND/person/month.

Mr. Marc Townsend, senior consultant at Arcadia Consulting, said that only a few of the more than 400 industrial parks operating in Vietnam can claim to have full urban amenities and services. meet the needs of both investors and workers.

With decades of experience working in Vietnam, this consultant points out the shortage of supply that real estate investors can take advantage of: housing as well as international brand hotels 2-3 Stars in second-class provinces and cities near industrial parks.

Consulting experts say that to improve the attractiveness of some provinces and cities to industrial manufacturers, and help attract and retain workers, it is necessary to build urban centers near industrial centers. industrial center.

From this perspective, the business leader from Hanoi said he decided to build the largest twin apartment tower in Viet Tri city to meet the high demand of experts, foreign workers, and the world. Middle-level managers are working in industrial parks in Phu Tho province.

Although Phu Tho is a new land for real estate investors, he believes that, thanks to its ability to meet the real needs of both residential and investment buyers, his project will receive great attention from investors. investors, will even be the project that leads this province’s real estate market in the new growth cycle.