Actual situation of implementing industrial projects in Vietnam: Renting and acquiring factories continues to be a trend with an increasing scale.

Source: June 17, 2021 # HOUSELINK Market Insight

Outstanding socio-economic situation in the first quarter of 2021

A series of industrial park and industrial cluster development projects have been proposed and approved for investment policy in the first quarter of 2021. The boom in industrial infrastructure development shows the potential to attract production investment of Vietnam in general, and the potential to develop industrial construction activities in particular in the coming time

Logistics continues to be the field that receives a large amount of investment capital, especially FDI in the first quarter of 2021 - confirming the development trend of this field in the coming time

A series of investors in the solar cell sector are moving large-scale production to Vietnam

Raw steel prices increased sharply from the end of March 2021, with an increase of approximately 30-40% compared to the end of the fourth quarter of 2021; and is forecasted to increase until the end of the third quarter of 2021. This puts great pressure on many construction contractors, as steel is one of the main input materials for construction activities

Renting and acquiring factories continues to be a trend on a larger scale

Although in the first quarter of 2021, the ratio of the number of projects that rent factories for production is similar to that of the fourth quarter of 2021, the investment registration value of these projects increased sharply when compared with the total cost of production. investment in industrial projects newly registered in the quarter

Each region has different priorities for future development

Based on data of industrial projects  in the form of foreign direct investment (FDI) and domestic direct investment (DDI) on HOUSELINK platform; we synthesize, analyze data and make reports on projects under construction in the first quarter of 2021; as well as projects that are taking preparatory steps (project preparation, design, contractor selection) to prepare for construction in 2021