New Vinhomes subsidiary to crack open industrial park sector
11:43 | 24/03/2020 Print Article
Vinhomes Industrial Park Investment JSC, a subsidiary of Vinhomes, has hiked its charter capital from VND70 billion ($3 million) to VND6 trillion ($260.87 million), 86 times higher than the previous figure.
|Vinhomes Industrial Park Investment is Vingroup's foray into industrial park development |
On February 27, Vingroup Ventures was renamed to Vinhomes Industrial Park Investment, changing its main business line from supporting startups and education to industrial real estate development to create a new growth motivation for the company and the group.
The company will have three operation pillars, namely residential, office, and industrial park property.
Vinhomes entering the development of industrial parks also contributes to creating favourable conditions for the world’s leading auxiliary equipment providers to establish their first manufacturing facilities in Vietnam and then build out an ecosystem for domestic automobile manufacturing, aligning with Vingroup’s overall target of developing the industrial sector.
Industrial parks in major cities and provinces have been rapidly occupied in the context of surging demand. The average occupancy rates of industrial parks in major northern and southern cities and provinces were over 92 and 80 per cent, respectively, at the end of 2019. When there is limited vacant land, developers of existing industrial parks tend to switch to ready-built factories, which are more time and cost-efficient for tenants who prefer a speedy setup.
Over the last two years, significant growth of ready-built factory supplies was observed in major industrial parks in Vietnam. As of 2019, the southern region of Vietnam, including Ho Chi Minh City and the provinces of Binh Duong, Dong Nai, and Long An, welcomed about 380,000 square metres of ready-built factory grounds, up 18.9 per cent on-year. Meanwhile, new supply in the northern region, including Hanoi, Haiphong, and the provinces of Bac Ninh, Hai Duong, and Hung Yen was 321,000sq.m, up 25.2 per cent on-year.