Long An province’s infrastructure ready for investors. (Photo: congthuong.vn)
According to economic experts, a number of trans-national companies have planned to expand their operations in Vietnam to reduce the pressure of new tariff barriers on goods exported from China to the US.
Data from the US Census Bureau shows that the volume of US goods imported from Vietnam in 2019 increased by 35.6% over the same period in 2018, in contrast to a decrease of 16.2% in imported goods from China.
Mr. Stephen Wyatt, General Director of JLL Vietnam, assessed that Vietnam has been a promising destination since the wave of factory relocation from China began.
According to JLL's first quarter report, northern Vietnam attracts the majority of large corporations who want to diversify their production beyond their facilities in China. The average land price reached 99 USD per square meter per a rental cycle, a year-on-year increase of 6.5%. The price of hire for already-built factories, a favorite choice for small and medium-sized businesses, remained stable at USD4-5 per square meter per month.
In the southern region, JLL recorded an increase in the number of land lease requirements and investors became more confident in increasing land rents. The average land price in the first quarter of 2020 reached USD101 per square meter per rental cycle, a year-on-year increase of 12.2%. Meanwhile, the price of already-built factories for rent ranged from USD3.5-5 per square meter per month, with a slight increase in Binh Duong, Ho Chi Minh city and Long An.
To welcome investment opportunities from foreign businesses, many localities have made plans to prepare land funds; reduce land rental tax and corporate income tax for investors. In Hau Giang province, Mr. Nguyen Van Tham, Deputy Director of provincial Department of Industry and Trade, said that despite slow-down investment activities due to COVID-19, the province is well-prepared to welcome investors after the pandemic ends.
Accordingly, Hau Giang exempts land rent and transfer fee of land use purpose investing in special fields such as agriculture and high technology. In particular, the province has sent letters calling on foreign investment through representative offices and embassies of foreign countries in Vietnam.
Similarly, a wide range of large industrial zones have prepared enough workshops and preeminent design for businesses’ operation. All are ready to welcome FDI projects into Vietnam./.