FDI capital flows strongly into real estate sector

Update: 21-07-2023 | 12:29:01

Real estate business ranks first in the list of industries attracting foreign direct investment (FDI) capital into Binh Duong in the first 6 months of 2023, with nearly 477 million USD, accounting for 49.35% of total registered investment capital.

Urbanization in the direction of civilization and modernity

Binh Duong is considered as an "industrial capital" leading the country in industrial production with 48 industrial parks (IPs), industrial clusters, accounting for a quarter of the area of industrial zones in the whole South. The continuous flow of FDI into the province, high economic growth and the focus on developing and expanding investment in industrial zones are signals that the industrial sector in Binh Duong will continue to thrive in the coming time.

In the first 6 months of 2023, despite being heavily affected by the tough global situation, Binh Duong is still a bright spot in terms of FDI attraction in the country with more than 967 million USD. Notably, FDI inflows into Binh Duong in recent years have not only focused on the manufacturing and processing industries, but also appeared more and more in large projects in real estate, trade and services.

Namely, over the first 6 months of 2023, real estate was still an area that attracted a lot of attention from foreign investors with 1 new project, 1 capital increase project and 5 times of projects registered for capital contribution and share purchase with a total investment of nearly 477 million USD, accounting for over 49% of the total FDI in the province. The cooperation between Binh Duong and large corporations with global brands, such as: Warburg Pincus, Sembcorp, Tokyu, CapitaLand Development, Aeon… are and will continue to contribute to the change of Binh Duong urban landscape.

In addition to commercial real estate, Binh Duong also focuses on attracting potential foreign investors in industrial real estate.

Recently, CapitaLand Group signed a cooperation agreement with Becamex IDC on a smart city development project with an investment of more than 500 million USD executed in Binh Duong new city. The project focuses on developing housing blocks with a total area of 18.9 hectares. It is expected that over 3,700 apartments and long-term houses will be built in this project, including low-rise, mid-rise and high-rise housing, meeting the needs of about 13,000 residents. Construction is being carried out in phases, the first phase of about 1,300 apartments and houses is expected to be completed in 2024. The whole project will be completed in 2027.

Plenty of room for investment attraction

In addition to commercial real estate, Binh Duong is also attracting potential foreign investors to pour capital into industrial and manufacturing real estate. Vietnam - Singapore Industrial Parks (VSIPs) have been assessed as a successful model in Binh Duong and many provinces and cities in Vietnam, is considered a highly effective cooperation between Binh Duong province and Sembcorp Group (Singapore).

After the success of VSIP 1 and 2, Becamex IDC and Sembcorp continued to cooperate to build VSIP 3 in Binh Duong to become the first zero-emissions industrial zone in Vietnam. Although this project is in the implementation stage, it has attracted major investors from Europe, including Lego Group's Children's Toy Factory Project (Denmark) with an investment of more than 1.3 billion USD; project of a jewelry manufacturing facility of Pandora Group (Denmark) with a total investment capital of more than 160 million USD.

Kelvin Teo, CEO of Sembcorp Group, said that in the coming time, Sembcorp and VSIP will mobilize investment capital for green, sustainable IPs with smart technology. Along with the construction of industrial park infrastructure, Sembcorp will cooperate to invest in the application of 4.0 technology at Eastern International University (EIU), with the goal of attracting and cultivating talents, creating high-quality human resources to meet production and business needs in smart factories of Binh Duong.

Although the real estate market is facing difficulties, in general, Binh Duong has a lot of room and advantages for the real estate market to be dynamic again when the province's economy is showing signs of growth. In order to facilitate the safe, healthy and sustainable development of the real estate market, Provincial People's Committee is also focusing on many solutions to remove difficulties for real estate market and housing development in the province.

In particular, Binh Duong is resolutely implementing the medium-term public investment plan for the 2021-2025 period and the investment plan for socio-economic recovery and development. In particular, the province puts more efforts into investment and development of many important infrastructure projects to create the best conditions for the development of the real estate industry. With the vision of transport infrastructure paving the way for a breakthrough, Binh Duong has been investing and perfecting transport systems by synchronous, modern direction, and regional connectivity. Specifically, to create impetus for inter-regional development, Binh Duong is implementing projects such as Ring Road 3, Ring Road 4 Ho Chi Minh City, Ho Chi Minh City - Chon Thanh expressway, Bach Dang 2 bridge connecting Binh Duong and Dong Nai, expansion of National Highway 13, completing My Phuoc - Tan Van - Ben Cat - Bau Bang avenues...

Vo Van Minh, Deputy Secretary of Provincial Party Committee, Chairman of Provincial People's Committee emphasized, for sustainable development, Binh Duong is focusing on developing high-quality service industries, meeting the requirements of industrial and urban development in the direction of civilization and modernity in the 2021-2025 period, with a vision for 2025-2030 and a vision for 2045 to become an intelligent city of the region and the whole country. Besides creating favorable conditions for businesses and investors, Binh Duong also wishes to cooperate with global investors and corporations to develop modern urban areas with many utilities.

Reported by Ngoc Thanh - Translated by Ngoc Huynh

Share

FDI capital flows strongly into real estate sector

HIGHLIGHTS

MOST READ