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  • 27 September 2021

Vietnam: 5 issues to pay attention to when investing in industrial parks

The fact that today’s investors invest in projects in industrial parks appears increasingly in the context that our country’s investment market is expanding.

Since Tan Thuan EPZ with over 300 ha in Ho Chi Minh City, the first export processing zone was established in 1991. Up to now, Vietnam has 228 IZs, and EPZs established with a total land area. natural 58,220 ha. IZs and EPZs are distributed in 54 provinces and cities across the country, in which they are concentrated in 3 key economic regions in the South, the Central, and the North.

Deciding which industrial park to invest in is also a rather difficult choice. Investors have to pay attention to the factory rental price and pay attention to other essential factors suitable for the future development of the business. Realizing this problem, VN-BIS provides consulting services to choose investment locations for investors.

First of all, a transparent legal record is the most essential issue to be considered.. Investors should pay attention to the types of permits that the owner of the IP has completed. Without these kinds of licenses, investors will face difficulties in their investment, especially not carrying out investment procedures.

In addition, investment procedures are also essential. The policies issued by the Vietnamese government should generally be the same. However, depending on the locality, they will require documents that are appropriate to the local situation.

Moreover, investors should pay attention to the price policy. An industrial park with a long-term rental procedure with a stable price will be the optimal choice for investors. The rental costs that investors need to pay attention to include: land rent, RBF rent, management fee, electricity and water supply price, wastewater treatment fee,…

Fourth is infrastructure and geographic location. Industrial park infrastructure includes internal road system, water supply system, power supply system, public lighting,… These issues are critical, so investors must choose suitable IPs with the investment industry to optimize.

Last but not least, professional support services are one of the investors’ concerns when entering the Vietnamese market. Complicated and cumbersome administrative procedures will cause difficulties for investors. Choosing industrial parks with support services will save time and costs to focus more on production and business activities.

With that said, deciding to invest is a challenging thing, especially in a foreign country. With deep knowledge and experience in the industrial real estate market, VN-BIS provides services to foreign investors to assist and advise in selecting suitable locations and completing local legal procedures.