>> Industrial real estate and the development of the semiconductor industry
>> Vietnam offers huge opportunities for semiconductor industry
| Industrial real estate will benefit from the flea market frenzy. |
| Photo : CTV/CVN |
According to Thomas Rooney, Senior Manager of Savills Vietnam’s Industrial Leasing Department, the need to invest in semiconductor manufacturing and assembly has led to an increase in the search for factories and industrial parks that meet the semiconductor industry’s infrastructure and service requirements, including stable power supply, high-speed internet access and efficient water treatment systems.
Industrial real estate tenants in the South are in the rubber, plastic, food and beverage processing industries, while those in the North are mostly companies operating in high value-added sectors such as IT, electronics and electronic products.
Therefore, according to Thomas Rooney, when the investment wave in the semiconductor industry grows, it will create increased development dynamics for industrial real estate in northern localities.
Semiconductor manufacturing is positioned as a new driving force to make Vietnam a prosperous country. Savills Vietnam predicts that by the end of 2024, Vietnam’s semiconductor industry will be worth over USD 6.16 billion, making Vietnam one of the important manufacturing hubs for many global semiconductor companies.
Some Dutch semiconductor companies have also started investing in Vietnam. BE Semiconductor Industries NV received an investment certificate in the Ho Chi Minh City Hi-Tech Park, with an investment capital of over 115 billion VND in the first phase.
Recently, Foxconn announced the deployment of a project worth over 383 million on an area of 14.26 ha in the Nam Son – Hap Linh Industrial Park, with an area of 14.26 ha.
Foxconn Singapore PTE LTD, a subsidiary of Foxconn Corporation headquartered in Singapore, also established Foxconn Precision Circuit Board Co., Ltd. to deploy this project to manufacture, assemble and process PCB (printed circuit board) with a total capacity of 2.79 million products per year.
Accelerating energy infrastructure projects
Savills Vietnam experts believe that to accommodate capital flows to the semiconductor industry and industrial real estate, localities and companies need to improve the system of mechanisms and policies, infrastructure and human resources to be able to best meet the needs of this specific industry.
The semiconductor industry requires huge amounts of electricity, so Vietnam needs to accelerate its large-scale energy infrastructure projects, Thomas Rooney said.
In Ho Chi Minh City, Hua Quoc Hung, head of the Management Committee of the Ho Chi Minh City Free Trade Zones (FTZ) and Industrial Zones (IZ) Authority (HEPZA), said the city has established an inventory of IZs and FZs to undertake their transformation into eco-industrial parks and high-tech industrial parks.
To attract more capital, HEPZA will work more closely with the municipal Department of Planning and Investment to propose investment criteria for approval by the municipal People’s Council, specifically tailored to industrial zones and forest zones. It will also undertake a project defining the development orientations of industrial zones and forest zones for the period 2023-2030, with a vision until 2045.
VNA/CVN
