In 2020, Apple, Google, and Microsoft have all planned to manufacture in Vietnam, along with that, foreign enterprises are gradually moving factories from China to Vietnam. On the other hand, in the next 10 years, Vietnam aims to raise GDP to 40%, focusing on adding value to the high-tech manufacturing and processing industries. In addition, the planning of the national industrial land bank increased by 115,000 hectares and reached 205,800 hectares.
For the investors not to miss the opportunity to enter the upcoming exciting real estate market, here are some notes on land for lease in Vietnam for those who need to establish a factory.
From 2020, the government is actively investing in infrastructure, including seaports, new highways in North-South (Northern area: Hanoi - Ninh Binh - Thanh Hoa - Nghe An) Bien Hoa - Vung Tau, Phan Thiet - Dau Giay and Long Thanh airport. This is a great attraction for the investors who want to expand their business in the southern provinces. At the same time, foreign enterprises tend to move factories and production processes from China to Vietnam because of geographical advantages and tax incentives.
Despite the prolonged epidemic situation, JLL's report for the second quarter of 2021 shows that industrial real estate rental businesses in Vietnam still have strong growth. Some businesses increased their profits by 50%, land for lease expanded, industrial zones in some northern provinces started construction.
The market of land for lease in Vietnam has grown steadily
Some provinces with large industrial zones targeted by many foreign enterprises are Dong Nai, Binh Duong, Long An, Hai Phong, Bac Ninh, Hung Yen and Nghe An. In addition, domestic enterprises also boosted investment in manufacturing industries with 555 projects. Large capital from many sources is the driving force behind the development of the industrial real estate market despite the fluctuations of the pandemic.
The application documents for industrial real estate rental in Vietnam have industry code 6810. Enterprises needing to rent and leasing enterprises have to carry out necessary legal procedures such as application for land lease, Investment registration certificate, sign the minutes of the land lease agreement, and pay the deposit as per regulations. Types of permits and lease contracts need to be approved in accordance with the Land Law2013, Article 149.
The leasing term of land for lease in Vietnam for commercial purposes, services, implementation of domestic investment projects, or foreign capital projects must not exceed 50 years. For some large investment projects with slow capital recovery or projects located in difficult localities, the leasing term shall not exceed 70 years.
The industries allowed to do business in Vietnam's industrial zones are mentioned in Vietnam's WTO commitments and international treaties. In particular, the industry groups attracting large investment capital are the electronics, solar energy, automobile, construction, textile, consumer goods processing, telecommunications, and logistics, etc.,
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