Development Status of Viet Nam Industrial Projects : Factory leasing and acquisition for manufacturing continue to be a trend with an ever-larger production scale
Socio-Economic overview Q1.2021
Despite complicated pandemic worldwide, Vietnam’s index of industrial production and value of import-export goods increased sharply over the same period last year.
A series of projects developing industrial parks and industrial clusters are proposed and approved for investment policy in the first quarter of 2021. The boom in industrial infrastructure development shows the potentials to attract manufacturing investors in general, and development prospects of the industrial construction segment in the upcoming periods.
Logistics has been the field receiving large amounts of investment capital, especially FDI in the first quarter of 2021 – to confirm the development trend of this field in the coming time.
A series of solar cell investors are shifting large-scale production to Vietnam.
Raw steel price increased sharply from the end of March 2021, with an increase of approximately 30-40% compared to the end of 2020; and is forecasted to keep increasing until Q3.2021. This puts great pressure on various construction contractors, as steel is one of the main input materials for construction activities.
Development Status of Viet Nam Industrial Projects in Q1.2021
Our observation shows that factory leasing and acquisition for manufacturing continue to be a trend with an ever-larger production scale.
Although in Q1.2021 the proportion of projects leasing factories for production was equivalent to Q4.2021 their registered investment value occupied in a quarterly total investment of newly registered industrial projects increased sharply (18% in Q1.2021 over 8% in Q4.2020).
Each region has different priorities for future development. While the Northern provinces have numerous projects in electrical – electronic businesses, energy is the investment priority in the Central region, or logistic centers are investment trends in the South.
Based on the data of industrial projects with a total investment of more than 2 million USD (equivalent to 46 billion VND) in the form of foreign direct investment (FDI) and domestic direct investment (DDI) on the platform. HOUSELINK; We synthesize, analyze data and make reports on projects under construction activities in Quarter 1/ 2021; as well as projects that are undergoing preparatory steps (project preparation, design, contractor selection) to prepare for construction in 2021.
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