Chinese firms dominate industrial land investment: report

By Dat Nguyen   November 17, 2020 | 05:37 pm PT
Chinese firms dominate industrial land investment: report
An aerial view of the Vietnam-Singapore Industrial Park in southern Binh Duong Province. Photo courtesy of Becamex IDC Corp.
Chinese manufacturing companies accounted for 88 percent of $1.57 billion poured into Vietnam’s industrial parks in the first nine months, showing an increasing shifting trend to Vietnam.

Among 20 key investments in the north and south regions, 15 were made by companies from mainland China, Taiwan or Hong Kong, according to a recent report by real estate consultancy Savills.

Companies from Hong Kong participated in eight deals with a total investment of nearly $700 million, while those from mainland China were involved in four deals worth over $300 million.

Companies from Taiwan invested in three deals worth $380 million in the north.

The biggest investments include the $333 million of Taiwanese electronics producer Wistron Corporation and its subsidiary. Wistron is a major laptop producer that has secured land in the northern province of Ha Nam.

The other Chinese companies were in the sectors of electronics, textile and garment, plastic, rubber, and paper.

Among the remaining five non-Chinese investments, two were from Singapore and the rest from Thailand, Japan and South Korea.

Vietnam is seeing rising demand for industrial land amid the establishment and expansion of multinationals as they seek to diversify their supply chains.

The country’s 280 industrial parks posted an occupancy of 70.1 percent in the first 10 months, and another 89 parks are being constructed, according to the Ministry of Planning and Investment.

Data from Savills shows that industrial parks in the northern Bac Ninh Province, the southern Dong Nai and Binh Duong provinces are recording high occupancy rate of 94-99 percent, showing a need for an increase in supply.

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