“Industrial parks towards green and sustainable, environmentally friendly directions are increasingly attractive to foreign investors,” says Mr. Pham Van Tuan – Deputy General Director of An Phat Holdings, General Director of An Phat High-Tech Industrial Park No.1 JSC.
The Appeal of Green Industrial Real Estate
Despite the gloomy picture of the global economy, Foreign Direct Investment (FDI) continued to flow strongly into Vietnam last year, reaching a record of $36.6 billion, in which, the real estate sector ranked second with a total investment of nearly $4.67 billion. With the continuous increase in FDI capital, foreign enterprises will have a high demand for manufacturing and storage space to serve production and business. Therefore, industrial real estate is predicted to maintain its dominance and be attractive to investors.
Regarding this segment, Ms. Trang Le, Senior Director of Research and Consulting at JLL Vietnam, says it is a very dynamic and potential market. Nowhere else witnesseses the participation of large foreign investors as in Vietnam. Currently, more than 15 foreign investors are involved in the development of industrial real estate infrastructure, while in other countries, there are only about 5-6 investors.
Recently, there has been an increasing interest in green industrial real estate among investors. A survey of 200 FDI enterprises by KPMG shows that, besides priorities such as location, workforce, and other logistics infrastructures, the green industrial park trend is also a priority for FDI businesses when choosing investment locations. Accordingly, there are currently four industrial park models attracting foreign investors: ecological industrial park – a notable global trend, ; urban service industrial park – workers have accommodation and have a peace of mind at work; smart industrial park – managing, connecting the electrical system, wastewater treatment with a smart system; industrial park integrated with logistics, warehouses, ports.
An Phat 1 – Green Industrial Park Attracting FDI
From the perspective of infrastructure development enterprises, Mr. Pham Van Tuan – Deputy General Director of An Phat Holdings, General Director of An Phat High-Tech Industrial Park No.1 JSC, says that many investors are looking for industrial parkes which are not only advantageous in location and scale but also sustainable development criteria to ensure the products they produce meet green standards, sufficient for export to demanding markets.
“When choosing investment locations in Vietnam, many investors require industrial parks to meet green standards. Capturing this mentality, we have invested in building sustainable infrastructure to meet demand and increase attractiveness to investors,” Mr. Tuan added.
Just over a year in operation, the An Phat 1 industrial park (Nam Sach, Hai Duong) is emerging as an attractive destination for foreign investors, with many “big players” . To date, the industrial park has attracted nearly 20 projects with a total registered investment of over $500 million, becoming one of the industrial parks attracting the most investment in Hai Duong since the beginning of 2023.
This achievement comes from the sustainable development strategy that the industrial park set from the beginning. “We prioritize searching and selecting secondary investors in the manufacturing, processing, and manufacturing industries that do not pollute the environment. Most of the secondary investors in the An Phat 1 industrial park plan to install solar panels on the roof of their factories,” Mr. Tuan exemplified.
Furthermore, An Phat 1 also requires factories to have plans for waste, gas, and wastewater treatment that meet standards, causing no harm to the surrounding environment. In addition, the area for planting green trees is also expanded to reduce carbon emissions.
It can be affirmed that the step-by-step transformation of industrial parks in Vietnam towards sustainable development is entirely correct and in line with global trends. This is an important step contributing to the realization of the Net Zero emissions goal by 2050 that Vietnam has committed to the international community.
