Welcome to Bac Ninh Real Estate Report. This will be a report to update real estate information in the Bac Ninh market, periodically broadcast on the 8th of every month. And to start the report, let’s review the main highlights in May 2021 in the Bac Ninh market.

I. Bac Ninh Socio-Economic News

1. Bac Ninh: 4 months of attracting FDI increased by 70% over the same period

In the first 4 months of the year, 38 projects were newly granted foreign investment (FDI), with a total registered capital of 259.6 million USD, up 70% over the same period; grant adjusted capital for 26 projects with adjusted capital increased by 37.8 million USD; contributed capital, bought shares, contributed capital for 17 times with a value of 7 million USD.

 

Accumulated in the first 4 months of the year, the total FDI investment capital in the province reached 304.4 million USD. This is a remarkable result in the context of dealing with many negative impacts of the Covid-19 pandemic. Moreover, the scale of registered FDI capital continued to increase. Enterprises investing in Bac Ninh are mainly industrial production with 71.1%, commerce 23.7% and transportation 5.2%.

2. The pandemic situation is extremely stressful, Bac Ninh has drastically implemented a series of strong measures

5/8 districts, towns, and cities in Bac Ninh province have positive cases for SARS-CoV-2 with 15 cases of F0, and nearly 400 cases of F1, more than 2,000 cases of F2.

The Chairman of the Bac Ninh People’s Committee requested localities to act drastically and immediately implement strong measures. From 00:00, on May 7, 2021, to apply social distancing measures according to Directive No. 15/CT-TTg of the Prime Minister in the following districts: Luong Tai, Thuan Thanh, Tien Du, Tu Son town and Bac Ninh city.

3. Young Entrepreneurs Association of Bac Ninh province join hands to prevent and control the COVID-19

On May 13, in Bac Ninh, the Young Entrepreneurs Association of Bac Ninh Province, Hanaka Group and Long Phuong Porcelain Company in collaboration with the Provincial Youth Union and the Youth Union of Bac Ninh Province came to hand-deliver medical supplies, testing kits, necessities, and cash in 3 districts of Thuan Thanh, Tien Du and Gia Binh with a total value of over 1 billion VND.

4. Bac Ninh: Withdrawal of 11 FDI projects in the first 4 months of the year

In the first 4 months of 2021, Bac Ninh province revoked the licenses of 11 foreign direct investment (FDI) projects with a total registered capital of 134,888 million USD. In which, 9 projects in industrial parks (IPs) with a total registered capital of 134,688 million USD, and 2 projects outside IPs with a total registered capital of 0.2 million USD.

Specifically, regarding FDI projects in IPs, in April 2021, the Management Board of Bac Ninh IPs has granted new investment registration for 7 FDI projects with a total registered capital of 14,599 million USD; granted capital adjustment for 7 projects with total capital increased by 49,334 million USD, and recovered 4 projects with total registered investment capital of 5.2 million USD.

5. Completing the organization of early elections with 100% voter turnout

According to the Director of the Department of Home Affairs of Bac Ninh province, as of 16:45 on May 22, the Election Committee of Bac Ninh province recorded 100% of voters going to the polls without abnormality occurs.

The province has established 973 polling stations and 973 Election Teams. The Provincial Election Commission has issued guidelines for investigating, making, and posting lists of voters participating in the election of National Assembly deputies and People’s Council deputies at all levels. According to statistics, the province has a total of 858,787 voters.

6. Pollution in Phong Khe, Phu Lam: Bac Ninh province continues to close 10 businesses, and one enterprise was fined nearly 1 billion VND

Chairman of Bac Ninh Provincial People’s Committee has just decided to sanction administrative violations of 10 enterprises and paper production households in Phu Lam industrial cluster (Tien Du district) and Phong Khe ward (Bac Ninh city) with a total amount of nearly 4 billion VND with the additional penalty of suspending production for 4.5 to 9 months.

7. Bac Ninh: 765 total cases, more than 500 cases of COVID-19 in Thuan Thanh alone

According to the Bac Ninh Department of Health, up to now, Bac Ninh province has recorded 765 positive cases of SARS-CoV-2 in 08 districts, towns, and cities with 138 outbreaks, including 53 new cases. It is worth mentioning that out of the total number of cases in Bac Ninh province from May 5 to May 29, Thuan Thanh district recorded 506 cases.

In the same related information, the Bac Ninh Department of Health said that by 6 AM today, 29 patients with COVID-19 had been declared cured including 18 patients at Tien Du field hospital and 11 patients at Gia Binh field hospital. Thus, at Tien Du field hospital, a total of 35 patients have been discharged, and field hospital No. 2 located at Gia Binh District Medical Center has a total of 20 patients declared cured.

II. Planning News – Real Estate

1. Scarcity of new supply and industrial land rent continuously escalated

From the beginning of 2021 up to now, despite the 3rd wave of the Covid-19 pandemic that directly affected the Northern provinces at the end of January, it has affected the investment decisions of a number of new projects in the region, but the demand for industrial real estate is still high.

Land prices hit a new peak, at 107 USD/m2/lease cycle in the first quarter, up 8.1% year-over-year. Similarly, ready-built factories for lease also recorded an increase of 5.8% over the same period last year; in which the Bac Ninh market had the strongest increase at 9% due to the introduction of a number of new high-quality ready-built factories.

Bac Ninh and Hai Phong are the two markets with the most abundant supply of industrial real estate in the North: “Land prices in these areas are forecasted to continue to increase at 8-10% over the same period last year. The ready-built factory market is also forecast to continue to be active, with about 332,000 square meters of new factories put on the market by the end of 2021, mainly in Hai Phong and Bac Ninh,” JLL’s report said.

2. Unusual in many BT projects assigned to Manh Duc Company?

Since 2018, Manh Duc Co., Ltd. has suddenly emerged as an enterprise assigned many important projects in Bac Ninh. One of the first notable projects that this company approved by Bac Ninh province is the Project of Residential and Commercial Service Complex in Tan Hong Ward, Tu Son Town.

On August 17, 2020, Mr. Nguyen Huu Thanh, Vice Chairman of Bac Ninh Provincial People’s Committee assigned more than 4,000m2 in Dong Ky ward to Manh Duc Company to build and upgrade the ring road from Tu Quarter to Nghe Quarter.

Less than four months later, on December 9, 2020, Mrs. Nguyen Huong Giang – Chairman of the People’s Committee of Bac Ninh City again signed a decision approving Manh Duc to implement the investment project to build and renovate Dai Dinh lake to raise the water level, and upgrade La market street, Tan Hong ward.

In early 2021, Manh Duc Company was again involved in the construction and infrastructure business project of Que Vo III industrial park, subdivision 2 in Bac Ninh.

However, the revenue of this business tends to decrease over the years. The gross profit of this company also increased and decreased quite unusually: 45 billion VND in 2019, 18.17 billion VND in 2018, 12.98 billion in 2017, and only a profit of about 13.96 billion in 2016.

3. Bac Ninh will have 7.4 ha for workers’ housing and trade promotion

Bac Ninh Provincial People’s Committee has just issued a decision approving the detailed planning project for workers’ housing, transaction, and trade promotion area in Dong Tho commune, Yen Phong district.

Accordingly, the project planning area is about 7.4 hectares with a population of about 2,800 people.

The project is planned as a social housing area, a transaction and trade promotion area with a modern social and technical infrastructure system.

4. Bac Ninh will build 11 social housing projects

The leader of Bac Ninh province said that the locality needs to build 11 social housing projects, with a total area of ​​​​about 23.4 hectares. The number of projects this time will meet the housing needs of about 23,230 people.

According to the list, Bac Ninh city has 4 projects in Nam Son, Vu Ninh, and Van Duong wards with a height of 15-20 floors, meeting more than 6,000 people. Yen Phong district has 2 projects in Yen Trung commune with the height of 15-18 floors, serving more than 4,800 people; Que Vo district has 1 project in Phuong Lieu commune; Tu Son town has 3 projects in Dinh Bang and Trang Ha wards; Du Tien district has 1 project in Dai Dong commune.

 

Currently, Sen Vang Real Estate Company is implementing project development consulting services for Real Estate Investors, please contact hotline 0948484859 for advice and support.

The last information has ended the Bac Ninh Real Estate Report in May 2021. Thank you for following “Bac Ninh Real Estate Report”. Please Like and Subscribe to be able to update the latest information from us. See you in the next real estate reports of Golden Lotus.