Industrial parks play a critical role in contributing to the nation's economic growth by addressing the burgeoning demand for logistics and industrial space in the region, said Richard I. Osmond, president and CEO of Science Park of the Philippines, Inc.
Science Park is involved in private industrial estate development in the Philippines.
"Industrial parks play a crucial role in creating a conducive business environment by providing the necessary infrastructure, which attracts both domestic and foreign investors," Osmond said.
In his presentation during the 22nd-anniversary celebration of World Trade Centers Association (WTCA) Day, Osmond explained that "these zones facilitate the concentration of industries, encouraging the sharing of technology and innovation, leading to modernization and higher productivity."
Establishing new factories and businesses within industrial parks generates substantial employment opportunities for the local population. Moreover, economic zones focused on export production significantly enhance a country's trade balance.
He reported that the demand for logistics space, particularly from e-commerce companies, continues to rise. The export demand for Asian manufactured products has shown a year-over-year increase of 4 percent, surpassing the 2014-2019 average of 2.5 percent.
Additionally, the first half of 2023 witnessed an average 10.4 percent year-on-year increase in prime logistics rental figures. Vacancy rates of leased industrial properties have markedly declined, with cities like Shenzhen, Hangzhou, and Suzhou reporting a 5 percent vacancy rate and Hong Kong at a mere 1 percent, according to the Cushman & Wakefield Asia Pacific (APAC) Logistics & Industrial 2022 Update.
Scott Wang, WTCA Vice President, Asia Pacific, added that countries across the Asia Pacific region continue to actively develop and promote industrial parks to attract FDIs, boost manufacturing capacity and create job opportunities.
He cited the World Trade Center (WTC) Tianjin in Mainland China, WTC Binh Duong New City (BDNC) in Vietnam, and WTC Andhra Pradesh MedTech Zone (AMTZ) in India, all of whom participated in the WTCA Day event as growing industrial hubs that have become centers of innovation and trade.
"As one of the largest international trade networks in the world, WTCA and its Members have worked closely to support industrial park development through global connectivity and trade facilitation," said Mr. Wang.
Ms. Huynh Dinh Thai Linh, CEO of WTC BNDC, mentioned the impact of their industrial park on the Binh Duong industrial zone. WTC BNDC is a subsidiary of Becamex IDC, recognized as Vietnam's leading industrial infrastructure developer.
"In the past five years, we have contributed a lot in trade promotion, especially in supporting (for) the investors," shared Ms. Linh. "After the development of our industrial park, we brought in the exhibitions. Before, we had a few exhibitions in Binh Duong, our industrial area. And now, we are the third market in Vietnam after Hanoi and Ho Chi Minh City."
According to Ms. Linh, they operate around 30 industrial parks across 20 provinces in Vietnam. WTC Binh Duong New City, located in the heart of Vietnam's industrial hub, is now a destination for innovation and sustainability in the country's Southern Key Economic Zone (SKEZ).
Meanwhile, Dr. Jitendra Sharma, CEO of WTC AMTZ, India's premier medical technology park, sees immense potential in joining the global WTCA network.
"Being part of the WTCA family exponentially increases our potential to collaborate, achieve, promote, integrate, and expand," said Dr. Sharma. "WTCA is an exponential driver of our growth."
"We (WTC AMTZ) are into the business of saving lives. And saving lives also happens when you expand the economy," he added.
Moving forward, Mr. Wang explained that WTCA will focus on industrial parks in expanding its membership base as part of its "Road to 500" initiative, which seeks to expand its current global membership base to 500 WTCA Members over the next decade.
"WTCA remains open to diverse business models for WTC licenses, which reflects our commitment to adapting to global changes in how people work, connect, and participate in trade," said Mr. Wang.
WTCA recently celebrated the 22nd anniversary of "WTCA Day," proclaimed by former New York City Mayor Michael Bloomberg and acknowledged by the office of the Secretary General of the United Nations on June 12, which recognizes WTCA and its network of WTC locations for encouraging and facilitating trade, promoting economic development, and fostering peace.
Wang also shared that the upcoming 2024 WTCA Asia Pacific Regional Meeting (APRM), to be held August 25 to 27, 2024, and hosted by WTC Haikou in Mainland China, will gather WTCA members across the Asia Pacific region to discuss trends such as industrial park development, share best practices, discuss plans, and network with one another.
Comments