Amidst the slowdown of the general real estate market, the industrial logistics real estate segment remains a bright spot driven by the steady flow of foreign direct investment (FDI) into Vietnam.

The country has attracted over US$20 billion in FDI as of September 20, up 7.7 percent year on year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

In addition to industry titans such as Samsung and LG, other international manufacturers continue to flock into Vietnam.

In September, Apple finalized the relocation of 11 of its audio device production facilities to Vietnam, marking a significant shift in the company’s global supply chain strategy.

Experts from Ho Chi Minh-based private equity investment firm VinaCapital have forecast Vietnam’s GDP growth to rebound to 6.5 percent next year, driven by a recovery in exports, which will in turn be closely accompanied by a rebound in the local manufacturing sector output.

In addition, the comprehensive strategic partnership recently set up between Vietnam and the U.S. signifies an important turning point, which will usher in a new period of development for Vietnam. 

Against the backdrop of the bright prospects, industrial real estate developers are ramping up efforts to expand their land bank to seize the opportunities of Vietnam’s expected economic rebound in 2024.

There has been a recent surge in supply of industrial parks in both the northern and the southern regions of the country.

According to real estate service firm CBRE, three new industrial parks spanning 528 hectares in Bac Ninh and Hai Duong Provinces, located in northern Vietnam, went into operation in Q1 of this year.  

Two other projects, VSIP 3 Industrial Park and Nam Tan Uyen 3 Industrial Park, in the south are expected to provide the market with more than 1,300 hectares.

Furthermore, a total of 5,400 hectares of industrial park land, located primarily in Long An (40 percent) and Binh Duong (27 percent), is planned to be released in the near future, CBRE said in a report.

As Vietnam’s for-rent logistics and industrial real estate platform, BW Industrial Development JSC (BW) is well-poised for further growth next year, given the launch of 10 new projects nationwide in 2023.

These projects aim to meet the growing demand for ready-built factories and warehouses among the domestic and foreign investors that are eyeing Vietnam’s logistics and industrial sectors.  

The 10 projects, covering a total gross floor area of one million square meters and strategically located in regions with excellent connectivity and infrastructure, including Hai Phong, Quang Ninh, Ho Chi Minh City, Binh Duong, and Dong Nai, is a testament to the firm’s unwavering commitment to foster Vietnam in becoming a vital link of the global supply chain.

With a deep understanding of the needs of modern tenants, BW focuses on ready-built warehouses and factories that offer investors flexibility, speed to market, lower capital expenditures, and time commitments.

As a result, BW’s projects have garnered numerous inquiries from potential tenants and recorded high occupancy rates.

BW has achieved and maintained a remarkable occupancy rate averaging 93 percent among its stabilized projects as of September 2023.   

The 10 major projects, which form part of BW’s growth plan for 2023 and beyond, demonstrates the company’s long-term goal of “staying atop market developments and getting ahead of trends.”

The plan is strongly backed by international investors, with BW having secured an impressive approximately US$300 million from such investors in the first quarter of this year alone.

BW currently has over 8.5 million square meters of industrial land in prime locations under control across 40 projects in 11 key provinces in Vietnam, with over three million square meters of gross floor area of completed or under-construction properties.

With $2 billion of gross assets under management, BW is currently operating an e-commerce and last-mile delivery logistics cluster, Tan Phu Trung in Ho Chi Minh City, with several in the pipeline throughout Vietnam’s two key gateway cities.

BW’s CEO Lance Li is bullish on Vietnam’s economic outlook and the potential of the industrial real estate sector.

“With the foresight to capture Vietnam’s economic rebound by Q2 2024, BW has launched multiple projects this year which will meet the increasing demand of international manufacturers here,” Li commented.

“Vietnam has been experiencing steady and stable growth, and the strong fundamentals related to workforces, location, FTAs, and economic orientation will continue to be its most significant assets for long-term growth.

“As a developer of for-rent logistics and industrial properties, BW will continue to maintain its position through organic development and by acquiring high-quality assets and well-situated land parcels.”

Tuoi Tre News