Savills: IP land rent in HCMC higher than in Hanoi

According to the report, the highest space rent at IPs in HCMC is US$242-286 per square meter a year while that in Hanoi is US$120-190. 

In HCMC, the highest annual rent is US$242-286 per square meter at Tan Tao IP, followed by Tan Binh IP with US$220-250 per square meter and Vinh Loc A IP with US$180-190 per square meter.

Tay Bac Cu Chi IP offers the lowest rent, at US$40-50 per square meter a year. Meanwhile, the rent is US$60-70 for Hoa Phu and Dong Nam IPs and US$65-75 for An Ha and Tan Phu Trung IPs.

Figures in the report showed the average rent at IPs in HCMC is double that in neighboring southern provinces including Binh Duong, Long An and Dong Nai.

Apart from the operational 16 IPs, HCMC is preparing to develop seven new IPs to attract foreign direct investment in the apparel, service and food processing sectors.

Currently, Hanoi has a dozen industrial and hi-tech parks with space rent doubling that of IPs in other northern localities.

The rent is US$120-190 per square meter per annum at Nam Thang Long IP, US$130-150 at Noi Bai and Hanoi-Dai Tu IPs, and US$90-150 at Quang Minh, Phu Nghia and Thang Long IPs.

The lowest average space rent in the capital city is US$50-60 per square meter at Hoa Lac Hi-tech Park, followed by Kim Hoa IP with US$50-80 per square meter.

According to the Ministry of Planning and Investment, Vietnam has 299 industrial zones occupying a combined area of 84,000 hectares. Of the total number, 212 have come online and 87 are under construction.

Around 26,000 hectares out of the 56,000 hectares available for lease at the industrial zones across the country has been occupied by tenants.

In the southern region, Dong Nai Province has the largest number of IPs, followed by Binh Duong, Ba Ria-Vung Tau, HCMC and Long An.

Meanwhile, the leader in IPs in the north is Bac Ninh Province. Hanoi comes second, followed by Haiphong, Thai Nguyen and Hung Yen.