Semiconductors set to bolster industrial property – The Star Online
Thursday, 06 Jun 2024
Samsung’s research and development centre in Hanoi. Vietnam is becoming a top destination for semiconductor investors. — Vietnam News
HANOI: The growth of Vietnam’s semiconductor industry will facilitate the development of the industrial real estate sector, even as Vietnam needs to focus more on creating favourable conditions for investors, experts say.
According to Thomas Rooney, senior manager for industrial services at property consultants Savills Vietnam, the country is becoming a top destination for semiconductor investors.
Vietnam has a favourable location in South-East Asia, a large supply of necessary rare-earth elements for semiconductor chip production, and a stable political environment. It is also actively pushing for the development of the semiconductor industry with favourable policies.
According to Savills Vietnam, while customers renting industrial properties in the south are usually rubber, plastic, foodstuff and beverage businesses, more computer and electronics firms do so in the north.
As the wave of semiconductor investment grows, it will also facilitate the development of industrial real estate in the north.
Rooney noted that rising investment in semiconductor manufacturing is leading to a rise in demand for factories and industrial parks that satisfy the infrastructure requirements of the industry, including a stable power source, high Internet speed and effective water-treatment systems.
Upgrading the quality of these factories to attract investors is crucial, he said.
Vietnam’s semiconductor industry has a lot of growth potential. It has attracted many top companies in semiconductors over the years, including Samsung, Qualcomm, Infineon and Amkor, with factories and factory-expansion projects worth billions of US dollars, according to experts.
For example, in 2022 Samsung opened its largest research and development centre in South-East Asia in Hanoi.
The country’s semiconductor industry is expected to reach over US$6.16bil by the end of 2024, helping it become one of the world’s most important production hubs for semiconductor companies worldwide.
Rooney said the government and businesses need to work together to improve the investment climate, infrastructure and manpower to create suitable conditions for the semiconductor industry and industrial real estate. — Viet Nam News/ANN
Vietnam , SemiconductorIndustry , IndustrialRealEstate , Investment , Manufacturing , Samsung , Infrastructure
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