Viet Nam Industrial Construction Report 08 months of 2021

Following the trend from the beginning of 2021, the number of newly registered projects decreased by about 36.8% over the same period last year, but the total value of newly registered capital increased by more than 16%. This shows that the trend of foreign investors invest in large-scale projects is continuing in the first 8 months of 2021.

In the first 8 months of 2021, the number of newly registered industrial projects which have plan to rent factory accounted for 22% of the total number of projects, the registered investment capital of these projects accounted for 11%. The majority are still land lease projects for construction, however, according to our observations, the rental and acquisition of factories continues to be a trend with expanded production scale. Factory leasing projects are mainly in the North market with overwhelming numbers both in terms of the number of projects and the value of registered investment capital.

Projects under preparation and design phase account for the largest amount both in number and total investment capital among industrial projects. Due to the complicated situation of the epidemic in the past 8 months, it has greatly affected the project implementation, as well as the psychology of investors who are afraid of investing in project construction during the epidemic, especially the problem of high price of construction materials will affect the overall cost, so most of the projects are still in the preparation and design phase.

HOUSELINK data shows that at the end of August 2021, the expansion project is quite small compared to the new construction projects. However, the number of expansion projects of 435 is much higher than the number of new construction projects (387). This shows that more and more investors tend to expand production, but the scale is not too large. In addition, new construction projects are smaller in number, but the investment capital scale reaches a great number. It can be seen that the trend of new investment in large-scale projects is still going on in the Vietnam market.

At the end of August 2021, there are 193 projects are expanding the existing production scale, with a total investment capital reached nearly 6 billion USD and 3,81 thousand hectares of land area. New construction includes 135 projects, with total investment capital and land area of 5,4 billion USD and about 4 thousand ha accordingly).

In all three regions, most of the resources are focused on the construction of projects in the energy sector. In addition, in the North and Central region, the projects in the field of electronics are also very focused to be invested. Meanwhile, in the South, the pharmaceutical sector is behind the energy sector.