Southeast region expands industrial land for foreign investors

Many localities in Vietnam's southeast are expanding industrial park planning, creating momentum for attracting foreign capital in the context the region is running out of related land.

In early August, the overall planning of Binh Duong province was approved for the rest of the decade, and with a vision to 2050. In it, developing industrial parks (IPs) is one of the most important parts of the development strategy of the province.

By 2030, there is hoped to be over 40 IPs with a total area of about 18,600 hectares. Among them, 33 IPs will continue to be implemented according to the previous plan, and six IPs will be included in the national plan, along with preparation for i10 proposed parks.

Nguyen Trung Tin, director of Binh Duong Industrial Parks Management Board, stated that Binh Duong is rapidly expanding its IP coverage. Immediately after Binh Duong People's Council approved VSIP III, phase 2, and Cay Truong IP, these IPs are completing infrastructure, and readying land to attract new capital from abroad.

“To promote and expand business opportunities for foreign-backed enterprises to come and bond with Binh Duong, the province will fund two IPs, with a total area of about 1,000ha. After that, in 2026-2030, the province aims to invest in eight IPs across 6,000ha,” Tin said.

In late July, Dong Nai province had its planning approved for the same period. By 2030, the province will have a total of 48 IPs, increasing by 17 compared to current figures. These added IPs will include high-tech and green IPs and two IPs on a large scale, namely the 2,000-ha Ban Can-Tan Hiep and 1,800-ha Xuan Que-Song Nhan complexes.

In the draft planning for Ho Chi Minh City, the city proposed developing 11 more IPs by 2030. According to Ho Chi Minh City Industrial and Export Processing Zones Management Authority, the city currently has some 5,900ha expected for related activities.

Ba Ria-Vung Tau will also seek to have seven new IPs, including five with an area of over 1,000ha, namely Bac Chau Duc 1-5 facilities. By 2030, the locality could have up to 24 IPs.

The southeast is the leading region in the country in terms of the number of IPs with 119 units, covering an area of ​​over 44,000ha.

Currently, the region also attracts the largest amount of foreign direct investment. Statistics published by the Foreign Investment Agency under the Ministry of Planning and Investment showed that in the first half of the year, these localities attracted $4.66 billion among the $15.18 billion total for the whole country.

Although the southeast region is one of the largest overseas funding magnets in the country, it has run out of industrial land, according to Nguyen Van Toan, vice chairman of the Vietnam Association of Foreign-Invested Enterprises.

"The average occupancy rate of IPs in this area is over 70 per cent, which is the highest rate compared to other regions in the country," Toan said. "In key localities, namely Binh Duong, Ho Chi Minh City and Dong Nai, the occupancy rate is up to over 90 per cent. Thus, adding IP planning to national strategies is extremely important, creating room for foreign investment attraction."

In addition, the room for attracting such capital is large because the localities in the south region in general are accelerating the construction of transport infrastructure, including inter-regional expressways and airports. "Thus, if they do not have preparation for such land, they will miss out on several opportunities,” said Toan.

Big industrial real estate developers are also looking to the region. Thailand’s WHA Group is considering selecting Ba Ria-Vung Tau to expand operations in the south after the success in the central province of Nghe An. The group also wants to invest in the Chau Duc service-urban IP in the province.

Chau Duc district has ample potential for development. Under the newly approved provincial planning, an area of 4,200ha has been earmarked for industrial development in the district.

“If implemented, it will be the second-largest project in Vung Tau, trailing behind Chau Duc IP. WHA Group seeks to pump in at least $1 billion in Vietnam in the next five years to develop smart and eco-friendly IPs. It also aims to lure secondary projects with a total capital of over $5 billion,” said WHA chairwoman and managing director Jareeporn Jarukornsakul at a meeting with provincial authorities in March.