INDUSTRIAL PARK NEWSLETTER Q2/2023

At the end of the first six months of the business year, Nam Dinh Vu Industrial Park recorded several new projects being launched, with a focus on land leveling and infrastructure construction and development. Nam Dinh Vu continues its sustainable and environmentally friendly development goals, with a particular emphasis on training activities within the industrial park. Let’s now go through some key news in the Quarter 2/2023 Industrial Park Newsletter:

• Project Updates: Phase 1 of the industrial park has reached 100% occupancy, and for Phase 2, the initial infrastructure development of 200 hectares has seen several projects become operational, while the next 280 hectares are currently undergoing land leveling and infrastructure completion.
• Continued attraction of new projects.
• Highlights of events by Sao Do Group – Nam Dinh Vu Industrial Park.
• Updates on business and investment-related legal policies.
• Investment environment report for the first six months of 2023 in Vietnam and Hai Phong.

Latest Industrial Land For Rent (Update 2023)

1. Current situation of the industrial land for rent price

Although the current epidemic situation is still stressful industrial land for rent and volatile, the current condition of industrial land and factory for rent prices is still assessed to increase. Because Vietnam can still control the epidemic quite well, factories and companies still have development plans and work stably during the epidemic season. Everything is still maintained.

Along with the investment and improvement in the quality and infrastructure of these areas, the prices are continuously increasing. According to the assessment, it can grow from 9-10% compared to the same period of previous years. Another point that makes prices always increase is the ability to attract investment from abroad in Vietnam. That leads to a situation where the supply of industrial land and factories is lower than demand, creating opportunities for rents to be pushed up.

2. Price stabilization policy

However, the economic situation in Vietnam is still being seriously affected by the epidemic when most businesses have had to suspend or maintain production activities to a minimum. Therefore, it is essential to adopt policies to stabilize land rents to solve financial difficulties.

The Government has timely paid attention to and intervened in this matter because the land rent in industrial land for rent is “surprisingly high.” Typically, there are plans to expand the scale of industrial zones with large areas of natural land for lease. Thanks to that, businesses will have more choices, and the price will be adjusted positively.

3. Land rental price list for industrial zones of Vietnam’s provinces and cities 2022

With the advantage of attracting abundance investment capital from abroad, industrial parks are increasingly focused on developing on a large scale and oriented towards sustainable development, continuously improving to meet market demand. That helps businesses have more choices in renting premises, ensuring the quality of the land and saving costs for businesses.

4. Industrial park land for rent price

When renting industrial park land in the northern provinces such as Bac Ninh, Bac Giang, Hai Duong, Hai Phong, Hung Yen, Ha Nam, Thai Nguyen…, the lowest price ranges from 58 – 120 USD/m2/cycle rental period. The average price ranges from 67 – 190 USD/m2/lease cycle. The highest cost is 70 to 260 USD/m2/lease cycle. Hanoi is always the locality with the highest price.