Vietnam is home to 414 industrial parks established in 61 out of 63 provinces, spanning a total area of nearly 127,000 hectares, and over 1,000 industrial clusters with a combined area of more than 31,000 hectares. These industrial parks have become key hubs, attracting domestic and foreign investment projects.
They also attract thousands of experts, engineers, and senior personnel. However, many localities still lack upscale apartments to meet the accommodation needs of this group.
Shortage of Upscale Apartments in Industrial Capitals
Han Tea Kyung, a South Korean expert working in an industrial park in Bac Giang, over 50 kilometers from Hanoi, spends nearly two hours commuting daily from Keangnam, Hanoi, to his workplace and back. On days with traffic jams or incidents, the travel time extends further. Exhausted by this routine, Han still wishes to rent a luxury apartment there to save time on commuting and gain more rest.
Similarly, Li Yu Ying, a Chinese expert, spends about two hours driving daily from an inner district of Hanoi to his workplace at Thuy Van Industrial Park in Viet Tri, Phu Tho. Li had rented an apartment in the city center to save time on his commute. However, the apartment lacked amenities, resulting in a less-than-positive experience. After two weeks, he decided to give up three months’ rent and one month’s deposit to return to Hanoi, resuming his daily commute.
In reality, many localities lack upscale apartment complexes that meet the standards required by experts, engineers, and senior personnel working in the surrounding industrial parks. For instance, Phu Tho has seven large industrial parks and 28 industrial clusters, employing nearly 14,000 highly skilled workers and foreign experts and about 50,000 young laborers. The most significant investors come from Singapore, South Korea, China, Japan, the US, the UK, and India.
Most of these individuals seek to rent or buy upscale apartments locally but have limited options. This customer group also has stringent criteria regarding convenience in transportation and a living environment that ensures security and is managed according to upscale standards.
“I want my apartment to meet specific living standards, including green spaces, cleanliness, security, and civility, with comprehensive amenities and professional management,” said Li Yu Ying, emphasizing that these factors are his top priority in deciding whether to settle down for the long term.
The Allure of Apartment Projects for the Expert Community
Since its market launch, the VIC Grand Square Viet Tri project has quickly attracted the attention of Phu Tho’s elite and, more specifically, the team of experts working in the area’s industrial parks and neighboring provinces.
The appeal of VIC Grand Square lies in its “diamond” location in the heart of the city’s administrative, economic, and commercial service center. The project is surrounded by Hoang Vuong Square, Muong Thanh Hotel, the central market, the theater, Vincom Viet Tri, and schools of all levels.
Additionally, Phu Tho is strategically located at the gateway to the capital city of Hanoi’s western region and serves as a vital economic link between the Red River Delta provinces and the northern mountainous region. Situated 70 kilometers from Hanoi, 50 kilometers from Noi Bai International Airport, and about 180 kilometers from Hai Phong Port and the Lao Cai border gate, Phu Tho is a crucial link in the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh economic corridor.
After careful consideration, Li Yu Ying favored the two-bedroom apartment design, with a view of the Red River. Li mentioned that the project meets his criteria, including amenities and management services. “VIC Grand Square is also right in the city of Viet Tri, so I won’t spend much time commuting to the factory every day,” he added. From here, Li can also conveniently travel when working with partners in neighboring provinces, going on business trips or vacations abroad, or visiting his family.
The VIC Grand Square apartment tower boasts a prime location in the heart of Viet Tri city.
Industry experts suggest that the model of sustainable industrial park development must be accompanied by housing solutions to attract residents to settle down and form a stable and harmonious community.
However, according to Trinh Huynh Mai, Deputy Director of Savills Hanoi’s Commercial Leasing Department, foreign experts have high demands regarding apartment quality, location, and accompanying management services, especially security, safety, and other amenities. Therefore, most apartment management service providers are reputable brands.
Once operational, Savills is expected to manage VIC Grand Square, offering services tailored to the residents, such as multilingual concierge and butler services, along with premium amenities like a commercial center, swimming pool, gym, and sky bar.
Attractive Investment Returns from Rental Properties
According to the master plan, by 2030, Viet Tri city will be a first-tier urban area, a regional hub, and a critical development pole in Hanoi’s northwest region and a national cultural-historical tourism city.
Market experts predict an inevitable shift in investment trends, with significant capital flowing to suburban areas and satellite towns surrounding Hanoi, such as Phu Tho, Vinh Phuc, Bac Ninh, and Bac Giang. These provinces attract investors due to their well-developed infrastructure, harmonious landscapes, and moderate prices.
Notably, the limited supply of rental properties around industrial parks offers relatively attractive returns, making it an ideal investment channel compared to bank interest rates.
According to Nguyen Van Tien, a seasoned investor in the Viet Tri apartment rental market, the monthly rent for a fully-furnished one-bedroom apartment can reach 11-13 million VND, while a two-bedroom apartment can fetch 14-16 million VND. This translates to an annual rental yield of 12%.
He attributes the high and sustainable rental yield to the severe shortage of upscale apartments for experts and the overall attractive price range of apartments in Phu Tho, meeting the market’s practical needs (apartments ranging from 1 to 2 billion VND). “Hence, projects with high potential like VIC Grand Square are always sought-after by investors,” Tien added.
