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Attracting investors of industrial land

From the beginning of the year up to now, many domestic and foreign enterprises have been leasing land in industrial parks (IPs) in Dong Nai to build factories, bringing the occupancy rate to over 75% in the industrial zone, more than the national average of nearly 10%.


​From the beginning of the year up to now, many domestic and foreign enterprises have been leasing land in industrial parks (IPs) in Dong Nai to build factories, bringing the occupancy rate to over 75% in the industrial zone, more than the national average of nearly 10%.

Nhon Trach 3 Industrial Park (Nhon Trach District) has been completed and expanded to the second stage. In picture: Kyokuto Vietnam Co., Ltd has just finished construction and goes into production.

According to the Management Board of Dong Nai Industrial Zones, the province has planned 35 industrial zones, of which 32 have already come into operation. Many infrastructure companies want to continue to expand their area to meet their needs.

Many businesses come to lease land

By the end of 2016, the occupancy rate in Dong Nai's IZs is about 70%, by mid-2018, the rate has increased by 5%. In addition, many businesses also signed a memorandum of understanding with the IPs when the investment license will be leased quickly. The industrial parks chosen by many investors are Giang Dien (Trang Bom district), Dau Giay (Thong Nhat district), Long Khanh (Long Khanh town), Nhon Trach 6, Nhon Trach 5 and Nhon Trach 3 (Nhon Trach District), Loc An - Binh Son (Long Thanh district)...

Nguyen Thanh Dat, General Director of One Member Limited Liability Company invested in Nhon Trach 6 Industrial Park, said: “From the beginning of this year, Nhon Trach 6 Industrial Zone has been rented to enterprises for nearly 32 hectares for a factory with a total investment of $187 million. At present, many enterprises are in the process of leasing another 30 hectares of land and are expected to sign a land lease agreement in 2018”. Land for lease in Nhon Trach 6 Industrial Zone has been filled to 70% by the middle of this year and according to the plan, by the end of 2020, all the land will be leased. With the advantage of waterway and road transportation, the capacity of Nhon Trach 6 could be faster than planned.

Similarly, the Giang Dien Industrial Zone with nearly 530 hectares is also attracting domestic and foreign enterprises to lease land for industrial production. Although the land price for lease in this industrial park is not cheap, but it compensates for good transport infrastructure, hard land and enterprises rent land for fast and low cost. "In the first 6 months, Giang Dien Industrial Zone attracted 6 businesses to lease land with a total area of over 20 hectares. Only after several years of leasing land, the occupancy rate of Giang Dien is 70%”, said Nguyen Thi Hanh, General Director of Giang Dien Sonadezi JSC.

According to the assessment of domestic and foreign enterprises, the advantage of industrial zones in Dong Nai is the complete technical infrastructure. Besides, the province is also the gateway of traffic in the southeastern provinces, the goods taken to the Central Highlands and the West is also very convenient. The weather and climate are quite good, less storms, floods so many businesses who invested in the province 20-30 years have never suffered by any disaster.

Continue to be the destination

As perceived of the Association of Business Korea, Japan, Taiwan (China), Europe..., In the coming time, Dong Nai will still be the destination of many foreign enterprises. The reason is that large-scale road traffic projects are continuing to be invested such as Ben Luc - Long Thanh, Bien Hoa - Vung Tau, Dau Giay - Phan Thiet, Dau Giay - Lien Khuong expressways… In addition, the railway, waterway, Long Thanh International Airport will be implemented in the near future will also attract businesses to lease land investment not only in the industrial sector but also in the field of trade services, logistics, agriculture, tourism. However, the industry sector still attracts most businesses.

Mr. Chau Van Hiep, General Director of Dau Giay Industrial Park JSC, said: “Dau Giay Industrial Park has a total area of nearly 329 hectares, the area of land rental has now reached 60%. For the past two years, many enterprises have leased land to invest in production. A number of enterprises are completing investment procedures also signed a memorandum of understanding land lease.”

Dau Giay Industrial Park has the advantage of being located near Highway 1, Highway 20, Ho Chi Minh City - Long Thanh - Dau Giay Expressway, and in the future, there are two other highways going through so that the land in Dau Giay Industrial Park attracts investors is understandable.

According to Mr. Cao Tien Sy, Head of Management Board of Dong Nai Industrial Zones, there are 10 IPs in the province that have filled 100%. In particular, 4 industrial zones no longer have space for rent but the demand for investment expansion of large enterprises should continue to expand the second phase is Amata, Ho Nai, Nhon Trach 3, Song May. "In 2018, the province plans to attract about US $ 1 billion in foreign investment, but by the end of June attracted about $ 903 million. Attracting foreign investment in industrial zones that are close to the year's plan also means that businesses are increasingly renting land for industrial zones,” Mr. Cao Tien Sy said.

According to the plan of the provincial People's Committee, in 2018 the industrial zones of the province will lease about 100 hectares of land. However, by the end of June, the leased area has reached about 80% of the plan. Among them, the largest rental is Nhon Trach 6 Industrial Zone, followed by Giang Dien Industrial Zone.

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