[vneconomy.vn] Great Potential from the Demand for Expert Apartments in the New Industrial Hub of Northern Vietnam

FDI inflows into industrial parks in Phu Tho – the new industrial hub of Northern Vietnam – are driving a significant increase in the number of experts and high-level personnel, thereby boosting demand for premium apartments for this group…

The VIC Grand Square apartment tower boasts a prime location in the heart of Viet Tri City.

THE NEW INDUSTRIAL HUB IN NORTHERN VIETNAM

Phu Tho has emerged as one of the top 10 provinces and cities with the best economic governance quality, according to the 2023 Provincial Competitiveness Index (PCI) rankings released by the Vietnam Chamber of Commerce and Industry (VCCI). This index serves as a key indicator for assessing local governments’ ability to create a favorable business environment and attract investment.

In reality, Phu Tho has been making significant efforts to become a prime destination for both domestic and international investors.

In recent years, the province has continuously accelerated infrastructure development, with numerous large-scale projects being approved and expedited to facilitate investment attraction. Key projects include the interregional transportation route connecting National Highway 32, Ho Chi Minh Road, and National Highway 32C to Yen Bai province; the Vinh Phu Bridge over the Lo River linking Phu Tho with Vinh Phuc province; and, most notably, the Noi Bai – Lao Cai Expressway passing through Phu Tho, reducing travel time from Hanoi to Phu Tho to just 1 hour and 15 minutes.

Between 2021 and 2023, Phu Tho attracted 478 domestic private investment (DDI) projects with a total registered capital of VND 56.9 trillion, along with 78 foreign direct investment (FDI) projects worth approximately USD 2.1 billion. Investment quality in the province’s industrial zones has also improved, with major investors from South Korea, China, Japan, Singapore, the United States, and India injecting capital into diverse sectors such as electronics components, textile manufacturing, packaging production, plastic resin, and food processing.

In 2024, Phu Tho aims to exceed VND 50 trillion in total investment capital, with newly registered and adjusted FDI expected to reach between USD 500 – 600 million. The province also targets preparing 200 – 300 hectares of clean land to attract further investment throughout the year.

HIGH DEMAND FOR EXPERT APARTMENTS

Currently, Phu Tho province has seven major industrial parks and 28 industrial clusters, attracting experts from countries such as South Korea, China, Japan, Singapore, the United States, and India. Among them, nearly 14,000 highly skilled foreign workers and experts, along with nearly 50,000 young workers from the ‘golden generation,’ are employed in the area.

VIC Grand Square is a pioneering project in the market, introducing the Expert Home apartment line with expert-level standards.

The expansion of industrial parks and clusters has driven a significant increase in the demand for housing among the large number of foreign experts working in Phu Tho. However, the province currently lacks projects that meet the high standards required by tens of thousands of international professionals.

At present, many experts working in Phu Tho’s industrial zones are renting long-term hotel accommodations to meet their housing needs. However, these options come with relatively high rental costs while offering limited amenities and an incomplete living experience. As a result, many professionals choose to live in Vinh Phuc or Hanoi, despite having to endure long daily commutes.

To address this market demand, the developer of VIC Grand Square has introduced 1,478 premium apartments located next to Hung Vuong Square, within the economic and administrative center of Viet Tri City. From this prime location, residents are just 70 km from Hanoi, making commuting and cultural exchanges highly convenient. The development also offers easy access to essential services, including restaurants, shopping centers, and high-end entertainment venues.

VIC Grand Square is also the first project in the market to introduce the Expert Home apartment line, specifically designed to meet the needs of high-level professionals. It aims to deliver a world-class urban living experience. Upon completion, the project’s service system is expected to be managed by Savills Vietnam, featuring premium offerings such as multilingual reception services, concierge services, and comprehensive amenities, including a shopping mall, swimming pool, gym, and sky bar.

Additionally, with its luxurious and meticulously crafted design, the Expert Home apartments provide a modern living space with high-end finishes from renowned five-star brands. The development fosters a vibrant international community, making it a prime destination for elite professionals.

VIC Grand Square offers a modern living space with high-end finishes from renowned five-star brands.

With its existing advantages and ability to attract multinational enterprises and a large influx of migrant workers to its industrial parks and clusters, the rental apartment market in Phu Tho is becoming increasingly dynamic. Despite this, there remains a shortage of premium apartments catering to foreign experts, even though this segment offers rental yields of up to 12%–15% per year—double the returns seen in Ho Chi Minh City or Hanoi.

Foreign professionals typically seek residences that offer comprehensive amenities, infrastructure, and high-quality management and operations. As a result, projects like VIC Grand Square serve as the ‘missing piece’ to meet market demand and have the potential to become highly sought-after investment opportunities.

By 2030, Phu Tho aims to expand its number of industrial parks to 12, a 1.7-fold increase from the current figure. This includes the continued development and expansion of seven existing industrial parks—Thuy Van, Trung Ha, Phu Ha, Cam Khe, Tam Nong, Ha Hoa, and Phu Ninh—while adding five new ones: Thanh Ba, Bac Son, Dong Luong, Doan Hung, and Vo Mieu. This expansion is expected to create immense potential for the rental apartment market in the province, as the number of experts and engineers relocating for work will rise in direct proportion to the influx of investment capital.

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