Are there any market for an affordable rent Industrial Park in Vietnam? Despite the complicated epidemic situation in the mid-2021 months, the Industrial real estate market in the South of Vietnam still shows positive signs and moreover, the land rent at many Industrial Parks in Vietnam have reached new peaks in Q4.2021 (According to JLL data). The average rent has increased from $111/m2/ lease cycle in Q1.2021 to $117/m2/lease term in Q4.2021. However, on the other side of the market, there are still some Industrial Parks with relatively affordable land rental costs, ranging from $60 – 70/m2/lease cycle (usually up to 50 years) and one of the IPs has less than $70/ m2/ lease period is Viet Kieu Industrial Park Binh Phuoc in Hon Quan District, Binh Phuoc Province. Although, the land rental price in Viet Kieu Industrial Park Binh Phuoc is less than $70/m2 for the remaining 47 years, however Viet Kieu IP still meets the requirements for infrastructure quality and has the following advantages:
Quality first Strategy for Developing an affordable rent Industrial Park in Vietnam Market
Minh Khang Investment and Development Joint Stock Company is the investor of Viet Kieu Industrial Park, established in 2008, with a team of experienced leaders in the management and operation of construction works. Thus, construction of industrial park infrastructure always ensures the best quality, safety and reliability during operation, but still manage to achieve the affordable rent for Industrial park land.
Infrastructure construction has been carring out by Thanh Liem contractor, the first-class infrastructure construction company in Binh Phuoc, with many years of experience in implementing infrastructure projects in this area (according to the bidding newspaper), thus have a great understanding in the implementation measures to ensure the project is completed with quality and durability over time. In addition, Minh Khang Company cooperates with Nagecco Company – General Construction Joint Stock Company, a large-scale unit in the southern region of Vietnam, for the supervision consultancy package, contributing to ensuring the quality criteria of project.
Service Ecosystem, Essential for Reasonable Rent Industrial Park Development
At the same time, Minh Khang Investment and Development Joint Stock Company is one of the 9 member companies of the G-Group ecosystem, which has more than 15 years of experience in providing services to Industrial customers such as Catering Service, Project legal advice Service, cleaning and security Services… This will create a premise for providing a comprehensive product for customers who want to invest in Viet Kieu Industrial Park, “One Stop Services” supporting customers from the first steps of applying for an investment permit and a construction permit to other Services that supporting plant operation. More information about our service can be found at this link.
46 Years Remaining, a good life cycle for Cost effective Industrial Park rent
he People’s Committee of Binh Phuoc province has approved the adjustment of the 50-year land lease term from October 12, 2018 (Clause 7 Article 1 of the 3rd revised investment certificate of Minh Khang has been updated). That is, by the end of the first quarter of 2022, the remaining rental period in Viet Kieu IP is about 46.5 years, the highest compared to neighboring IPs and industrial zones with the same price bracket. This life cycle is very suitable for investors to buy land for long-term plans to expand the production chain in the future. This is one of the important factor that could contribute to the successful affordable Industrial Park Project in Vietnam.
Natural Characteristic Enables Cost savings for Factories Construction
Investors coming to Viet Kieu Industrial Park not only receive the best price policy in the region, but also save money during the construction process due to some natural conditions such as good ground, a typical characteristic for the Industrial Park in Binh Phuoc. The ground in the area has a simple structure consisting of sandy clay layers with an average load capacity of 16-18 tons/m2. The load-bearing capacity is suitable for factory buildings that do not require special load-bearing used as a warehouse, production areas can use the shallow foundation option on the natural foundation to save costs. The bearing foundation system for industrial buildings can be arranged directly on the natural foundation to make the most of the load-bearing capacity of the ground. Special load-bearing requirements for machine foundations subjected to dynamic, high-pressure loads can be applied to raft foundations on natural foundations.
In addition, the application of 4.0 technology to the operation management of the Industrial Park will be highly effective in limiting the risk of disrupting the production process. Moreover, technology application helps the industrial park to deal with early and thoroughly problems arising in the process of using infrastructure in Viet Kieu Industrial Park.
Future-Promissing Location could make an Affordable rent Industrial Park in Vietnam more Valuable
At the present time, it takes about 2 hours and 40 minutes to transport between Viet Kieu Industrial Park Binh Phuoc to Ho Chi Minh City Center or Cat Lai Port. Therefore, the movement of goods will face certain difficulties. Transportation time is a common characteristic of the affordable rent Industrial Park in Vietnam with the rent under $100/ m2. However, the low investment price for land and infrastructure, along with taking advantage of affordable labor resources in the area, will be an optimal choice for investors.
In addition, the routes expected to be deployed in the near future include:
- Ho Chi Minh City to Chon Thanh Expressway : It is expected to shorten the travel time from Viet Kieu IP as well as other Industrial Parks in Binh Phuoc to Cat Lat Port to approx. 2 hours (as per Tuoi Tre News)
- Chon Thanh to Hoa Lu Expressway: improving the connection between Vietnam and Cambodia.
- Ho Chi Minh City – Loc Ninh Raiway: more options for transporting goods for Binh Phuoc province and Southern Key Economic Region.
- Inter-zone route links between Viet Kieu Industrial Park and Minh Hung Sikico Industrial Park creates a connection between Industrial Parks in Binh Phuoc and Chon Thanh, contributing to a complete supply chain of goods.
Moreover, located in well-established industrial development area of Binh Phuoc, Viet Kieu Industrial Park location is just close to the existing Industrial Parks in Binh Phuoc including Korean Minh Hung Industrial Park, Minh Hung Sikico Industrial Park, Chon Thanh I & Industrial Parks. III, Becamex Binh Phuoc Industrial Park,… This will be an advantage because the supply chains are already available in the area, making it easier for investors for recruiting workers, purchasing raw materials, and transportation,…