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Industrial Real Estate - Certain prominent FDI projects in industrial zones in the first 8 months of 2022

According to the Ministry of Planning and Investment, by the end of August 2022, the total foreign direct investment capital registered for new, adjusted and contributed capital to buy shares of foreign investors in Vietnam is estimated at nearly $16.8 billion. With the available advantages and the drastic reform of the investment and business environment, many industrial zones have become bright spots to attract FDI projects in the first 8 months of 2022.

The situation of attracting foreign investment in the first 8 months of 2022

According to the Ministry of Planning and Investment, the total newly registered capital, adjusted capital and contributed capital to buy shares of foreign investors in the first 8 months of 2022 reached nearly 16.8 billion USD, equaling 87.7% over the same period in 2021 and down 5.2 percentage points compared to the first 7 months of 2022. Although newly registered investment capital decreased, both adjusted investment capital and capital contribution and share purchase continued to increase over the same period. Specifically:

• Newly registered capital: There were 1,135 new projects granted Investment Registration Certificates (by 100% over the same period), the total registered capital is over 6.35 billion USD (down 43.9% over the same period).
• Adjusted capital: There were 676 projects registered to adjust investment capital (up 5.8% over the same period), the total registered capital increased to over 7.5 billion USD (up 50.7% compared to the same period).Capital contribution and share purchase: There were 2,425 times of capital contribution, share purchase of foreign investors (down 10.8% over the same period), the total value of contributed capital reached over USD 2.9 billion (up 3.6% over the same period).

On the basis of industry, foreign investors have invested in 18 sectors out of 21 national economic sectors. The processing and manufacturing industry continued to lead with a total investment capital of over 10.7 billion USD, accounting for 63.9% of total registered investment capital. Real estate business ranked second with total investment capital of over 3.3 billion USD, accounting for 19.9% of total registered investment capital. Next are the professional science and technology activities; information and communication with a total registered capital of nearly $620.8 million and $518.9 million, respectively. The rest are other industries.

On the basis of investment partners, 94 countries and territories have invested in Vietnam in the first 8 months of 2022. In which, Singapore leads with a total investment of over 4.53 billion USD, accounting for 27% of total investment capital into Vietnam, down 27% over the same period in 2021; Korea ranked second with nearly 3.5 billion USD, accounting for nearly 21% of total investment capital, up 43.7% over the same period. Japan ranked third with a total registered investment capital of over 1.49 billion USD, accounting for 10.8% of total investment capital. Followed by China, Denmark, Hong Kong.

On the basis of investment location, Foreign investors have invested in 53 provinces and cities across the country in the first 8 months of 2022. Ho Chi Minh City leads the way with a total registered investment capital of over $2.7 billion, accounting for 16.1% of total registered investment capital and up 24.4% over the same period in 2021. Binh Duong ranked second with a total investment capital of nearly 2.64 billion USD, accounting for 15.7% of total capital, up 57.9% over the same period. Bac Ninh ranked third with a total registered investment capital of nearly 1.75 billion USD, accounting for 10.4% of total capital and nearly 2.4 times higher than the same period in 2021. Following respectively are Thai Nguyen, Hai Phong, Bac Giang, etc.

Some prominent FDI projects in industrial zones

In the first 8 months of this year, industrial real estate bustlingly welcomed Asian - European - American investors to access the market, opening a new growth momentum. Some prominent FDI projects in industrial zones include:

• Danish jewelry brand Pandora in mid-May signed a memorandum of understanding to build a new jewelry manufacturing facility in Vietnam - Singapore Industrial Park III (VSIP) in Binh Duong province. This will be the company's third production site and the first outside of Thailand.
• Germany's Framas Group has just rented a 20,000 m2 ready-built factory at KTG Industrial Nhon Trach 2 project (Dong Nai). Framas specializes in the production of high-quality plastic parts for customers such as Nike and Adidas.
• Fuchs Group, a German lubricants giant, at the end of the first quarter, announced its expansion of operations in Vietnam with the move to lease a 20,000 m2 land plot at Phu My 3 Specialized Industrial Park (PM3 SIP) in Ba Ria - Vung Tau to build a new factory. The land lease contract is for 55 years, showing the long-term commitment in Vietnam of the German lubricant manufacturer with more than 90 years of experience.
• The Central region has also become a destination to attract many new investors. Arevo Inc. from the US wants to invest in a 3D printer factory (135 million USD) in Da Nang Hi-Tech Park; United States Enterprises is expected to set up a semiconductor manufacturing plant here worth 110 million USD or the Fujikin Research, Development and Production Center ($35 million) also located in Da Nang Hi-Tech Park.

Meanwhile, the Northern region continues to attract capital flows from investors in Singapore, Korea, Taiwan and Japan - players who entered the market very early and constantly expanding its scale in the industrial capitals of the North.

• CapitaLand Development at the beginning of the year signed a memorandum of understanding to invest 1 billion USD with Bac Giang province to develop CLD's first industrial, logistics and urban area in Vietnam. BW Industrial Development Joint Stock Company has acquired DEEP C Industrial Park with an area of about 74,000 m2 in Bac Tien Phong Industrial Park, Quang Ninh Province.
• Thai Nguyen only attracted USD 924 million in FDI in the first two months of the year, accounting for nearly 18.5% of the total FDI in the country during the period. Prominent among them is the capital addition of 920 million USD of Samsung Electro-Mechanics Vietnam Co., Ltd., belonging to Samsung Group (Korea). As a result, the total investment capital in Yen Binh Industrial Park in Pho Yen town, Thai Nguyen has increased to 2.27 billion USD (nearly 52 trillion dong).

Source: Ministry of Planning and Investment & vnexpress.net