Experts say red tape removal a must for industrial property
Foreign direct investment (FDI) into industrial parks accounts for 35 - 40 per cent of the country’s total annual additional FDI.
According to the Ministry of Planning and Investment, the flow of foreign direct investment (FDI) into industrial parks accounts for 35 - 40 per cent of the country’s total annual additional FDI. Last year, Vietnam attracted a total of nearly US$35.46 billion in registered FDI, of which more than US$8.3 billion were for local industrial parks and economic zones.
The Vietnamese economy has been shifting towards further domestic production and exports, which creates a crucial premise for the development of key industrial parks and economic zones.
Nguyen Tran Nam, chairman of the Vietnam Real Estate Association, said that the country has developed into one of the most attractive investment destinations throughout the Southeast Asian region, particularly in the field of industrial production.
The domestic real estate market has witnessed stable growth in recent years while enjoying many upbeat developments in terms of market and incentives. This is believed to help accelerate the growth of industrial real estate which is widely considered as the most attractive sector in terms of investment, Nam noted.
He added that the market would enjoy robust growth in the short, medium, and long term if the State provides enough additional incentives and support to fully utilize its potential.
Furthermore, fresh market developments are giving an impetus to the domestic industrial property market. Most notably the ongoing US-China trade tensions are reckoned to lead to the shift of FDI flows into some Asian countries, including Vietnam. Some industrial groups and multi-national corporations are seeking investment opportunities and locations for their upcoming projects.
With these conditions, an array of golden opportunities is set on the horizon for the industrial real estate market. In order to make the most of these, the country needs to create more favourable conditions to lure additional FDI inflows, experts recommended.
Dang Hung Vo, former Vice Minister of Natural Resources and Environment.
Dang Hung Vo, former Vice Minister of Natural Resources and Environment, stressed the need to make progress in all aspects with the aim of attracting additional foreign investment. The Government should make further investment into key infrastructure and multimodal transport networks to reduce logistics costs and enable them to serve upcoming projects.
The Government is being urged to foster reforms to simplify administrative procedures, including those related to customs, and increase efficient linkages among economic sectors.
Land use fees in nationwide localities must be defined and publicized broadly in order to breed more confidence among investors. This will enable financiers to be updated on the fees and relevant costs. Localities need to offer additional incentives with regard to land leasing, production facilities, and technical infrastructure.
Industrial property has been subsidized by the State as the establishment of industrial parks must be submitted to the Prime Minister for approval. Moreover, industrial park developers have to ask for permits from the heads of provincial-level People’s Committees for industrial cluster projects, Vo said.
He proposed that the establishment of industrial parks should be carried out as planned previously, rather than going down the path of seeking for permission from local authorities.
Related News
Vietnam ready to export first batch of sweet potatoes to China
13:57 | 06/04/2023 Anti-Smuggling
Australian Governor-General wraps up State visit to Vietnam
13:53 | 06/04/2023 Headlines
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Vietnam active at UN Human Rights Council’s 52nd session
16:11 | 05/04/2023 Headlines
Latest News
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export
More News
HCM City’s industrial production index down 0.9% in Q1
14:47 | 04/04/2023 Import-Export
Fisheries exports estimated at 1.85 billion USD in Q1
14:45 | 04/04/2023 Import-Export
Quang Ninh aims to attract quality FDI inflows
14:43 | 04/04/2023 Import-Export
Exports face many difficulties
13:29 | 04/04/2023 Import-Export
Manufacturing enterprises increase their competitiveness thanks to digital transformation
13:28 | 04/04/2023 Import-Export
32nd Việt Nam Expo promises to boost business linkages
14:19 | 03/04/2023 Import-Export
Prevention of price risks before news that Indonesia increases rice imports in reserve
09:52 | 03/04/2023 Import-Export
Japanese investors highly appreciate Vietnamese property market
17:41 | 02/04/2023 Import-Export
Seafood enterprises propose to remove obstacles from exporting to the EU
10:34 | 02/04/2023 Import-Export
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export