Industrial real estate thrives on foreign investment

By Vu Le   May 25, 2022 | 11:00 pm PT
Industrial real estate thrives on foreign investment
Vietnam-Singapore Industrial Park in southern Binh Duong Province. Photo by VnExpress/Quynh Tran
The industrial real estate market is again seeing growth after Covid-19, thanks to foreign direct investment.

Pandora, the world's largest jewelry company by sales, plans to set up a US$100-million production facility in the Vietnam-Singapore Industrial Park III in the southern Binh Duong Province.

Framas, a leading German injection molding company, has rented a 20,000-square-meter ready-built property in neighboring Dong Nai Province to expand production in Vietnam.

Lubricant company FUCHS Group has also leased 20,000 sq.m of industrial land in the Phu My 3 Specialized Industrial Park (southern Ba Ria - Vung Tau Province) for 55 years to build a new factory.

Danang has also attracted many foreign investments like U.S. Arevo Inc.’s $135-million 3D printer factory, United States Enterprises’ $110-million semiconductor factory and Fujikin’s $35-million R&D center.

Singaporean, S. Korean and Japanese companies are expanding their production in northern localities.

Singapore’s CapitalLand Development signed a memorandum of understanding with Bac Giang Province, and has committed $1 billion to develop its first industrial-logistical complex.

In the first two months of the year Thai Nguyen Province attracted $924 million worth of FDI, accounting for 18.5 percent of the country’s total amount.

Of this, $920 million will be invested by Samsung Electro-Mechanics Vietnam (a subsidiary of Samsung Group), which will take the company’s investment in the Yen Binh Industrial Park to $2.27 billion.

FDI has been booming this year after the country brought Covid-19 under control and returned to a new normal, analysts said at a forum Monday.

Trang Bui, director of advisory Cushman & Wakefield Vietnam, said the new FDI is mainly coming into manufacturing and related sectors such as logistics.

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