According to statistics from the Foreign Investment Agency - Ministry of Planning and Investment, by the end of July 2023, FDI into Vietnam reached 13.43 billion USD, of which the real estate sector attracted 1.53 billion USD, continuing to hold the 3rd position in the ranking of groups of fields and industries.

With the increase in foreign capital, the demand for industrial real estate has also increased sharply. According to the second quarter 2023 report of the Ministry of Construction, the demand for renting factories in industrial parks has increased slightly in some provinces such as Bac Giang, Bac Ninh, Quang Ninh, Nam Dinh, Hai Phong. This demand is believed to come from the signing of contracts with many foreign partners in the early period of 2023.

The high demand is also reflected in the occupancy rate in industrial parks nationwide, reaching about 80% in the North and over 85% in the South. In addition, the average land rental price for the entire rental period in industrial parks in the second quarter of 2023 is basically stable compared to the previous quarter and increased by about 5-7% compared to the same period last year.

With the emergence of large corporations such as Intel, Samsung, Gertek, Luxshare… in recent years with billion-dollar projects, Vietnam’s position in the global value chain has been increasingly enhanced. Especially in the current period, when the “big guys” increasingly want to diversify their business or widely distribute their production systems to many different markets to minimize risks.

In addition, Vietnam is holding many advantages to attract foreign capital compared to some countries in the region. At the 3rd Vietnam Industrial Real Estate Forum (VIPF) in 2023 recently held, Deputy Minister of Planning and Investment Tran Quoc Phuong also emphasized these advantages.

Specifically, in recent times, Vietnam has continued to maintain macroeconomic stability, control inflation, and achieve positive growth results in a difficult context. In 2022, GDP growth reached 8.02%; import-export turnover reached over 732 billion USD, up 9.5%, trade surplus over 11 billion USD; per capita income reached over 4,100 USD.

The next advantage is that the investment and business environment continues to improve. In 2022, realized FDI capital reached about 22.4 billion USD, the highest in the past 5 years. In the first 7 months of 2023 alone, newly registered FDI capital and the number of newly licensed FDI projects continued to increase by 38.6% and 75.5% respectively over the same period, demonstrating strong confidence of foreign investors in Vietnam's investment environment.

In recent years, Vietnam's international position has been enhanced, international integration has become increasingly deep, participation and effective implementation of 16 signed FTAs, including new generation FTAs ​​with extensive and comprehensive commitments such as CPTPP, RCEP and EVFTA... Vietnam is also ranked in the group of 20 economies with the largest trade scale in the world with the presence of investors from 143 countries and territories, with nearly 38,000 projects, total registered capital of more than 452 billion USD.

In terms of human resources and domestic market, Vietnam has nearly 100 million people with a rapidly growing middle class, creating a market with quite large purchasing power. Along with that, infrastructure projects are increasingly invested in synchronously and completed, reducing transportation, logistics and input costs of enterprises, improving the competitiveness of the economy.

However, to continue promoting inherent advantages to welcome new partners with huge foreign capital flows, Deputy Minister Tran Quoc Phuong said that the Ministry of Planning and Investment has been coordinating with localities and relevant organizations to continue implementing tasks and solutions on the development of industrial parks and economic zones, including researching and proposing the development of the Law on Industrial Parks and Economic Zones to submit to competent authorities for consideration in the coming time.

In addition, the foreign investment cooperation strategy for the 2021 - 2030 period has set a number of specific goals such as increasing by 50% the number of multinational corporations in the group of 500 largest corporations in the world; Increasing the proportion of registered investment capital of countries and territories in some regions (such as Korea, Japan, Singapore, France, Germany, Italy, Spain, UK, USA...) in the total foreign investment capital of the whole country to more than 70% in the period 2021 - 2025 and 75% in the period 2026 - 2030.

From there, by 2030, Vietnam strives to be among the top 3 ASEAN countries and the top 60 countries in the world according to the World Bank's business environment rankings. With that goal, promoting the development of industrial parks to welcome investment sources is extremely necessary.

Also at this forum, Mr. Chong Chee Keong, CEO of Industrial Real Estate, Frasers Property Vietnam Company, commented that Vietnam is emerging as a new locality in developing and attracting industry. This means that there will be a shift of low-level projects to new industrial areas to enjoy investment incentives and incentives.

In addition, small and medium enterprises are tending to set up factories and production facilities in Vietnam to anticipate the shift of businesses. For these enterprises, the requirement is to have factories and facilities quickly to immediately receive orders and produce.

Many sources of information also show that some foreign investors have begun to "close" transactions in the Vietnamese market. Therefore, it is expected that in the coming time, FDI capital into Vietnam will continue to increase, especially in the late 2023 period.

Nationwide, a system of more than 400 industrial parks has been established with a total natural land area of ​​more than 128,000 hectares, and a total industrial land area of ​​over 86,000 hectares. Industrial parks have completed infrastructure, factories and international quality, piloting a number of industry clusters to form production networks, supply chains and participate more deeply in the global value chain in some localities.