The increasing demand for warehouse space in Vietnam is driving investment in the logistics system, with the emergence and expansion of foreign businesses.
The demand for warehouse space is increasing in Vietnam.
EcoTruck, a startup company founded in 2017, received a $2 million investment from South Korea's STIC Ventures in May this year. This investment will be used to expand operations using eco-friendly technology services and diversify the investment portfolio. EcoTruck currently has more than 300 partners with 9,000 vehicles, serving approximately 500 customers both domestically and internationally.
Also in May 2021, Emergent Vietnam Logistics Development Pte, a company from Singapore, was licensed to develop a $34.4 million logistics center in Binh Duong province. Upon completion, this project will provide logistics services, storage and warehousing, warehouse leasing, and more.
According to the Vietnam Logistics Service Business Association, the growth rate of the logistics industry in Vietnam is between 14 to 16% per year, with a scale of $40-42 billion. Currently, the market has the participation of 4,000 domestic businesses and 25 foreign corporations.
Another company from Singapore, Frasers Property Vietnam, recently announced a project to develop the Binh Duong Industrial Park (BDIP) in Binh Duong province.
Mr. Chong Chee Keong, Head of Industrial Real Estate at Frasers Property Vietnam, stated that manufacturers, after experiencing the first wave of Covid-19 last year, have reviewed and restructured their strategies and production capacity to avoid shortages of raw materials and inventory. Therefore, the demand for warehouse space will significantly increase in the near future.
"BDIP focuses on target customers in the logistics and distribution, light industrial, supporting industrial, high-tech industrial, and non-polluting manufacturing sectors. BDIP will provide a total of over 200,000 square meters of various types of warehouses along with perfect facilities over a period of 6 to 7 years. In the first development phase, approximately 40,000 square meters of ready-built factories (BRF) are expected to be handed over to tenants in Q2/2022," said Mr. Chee Keong.
Recognizing the demand, many localities have planned major investments in logistics, such as Ha Tinh, Da Nang, Ho Chi Minh City, Hau Giang, and Long An...
Specifically, the People's Committee of Ha Tinh province has approved the detailed plan to construct a logistics center in Vung Ang Economic Zone, with a scale of over 133 hectares. Ho Chi Minh City has also approved the Logistics Development Plan for the 2021-2030 period, focusing on developing 7 logistics centers covering a total area of about 623 hectares. For the Mekong Delta region, Hau Giang has announced the development of 3 logistics centers during the 2021 - 2025 period. Long An plans to call for investments in reception areas for warehouse and logistics at Long An International Port and logistics and service center in Ben Luc…
The prospects for the logistics industry in Vietnam are vast.
A joint venture between SLP and GLP is also planning to invest around $1 billion in developing modern logistics assets in their target markets near Hanoi and Ho Chi Minh City over the next 3-4 years.
"Since coming to Vietnam in October 2020, we have acquired 5 sites to develop warehouse projects with a total area of nearly 700,000 square meters, with an investment capital of over $200 million to develop modern logistics assets. We have also expanded our staff to develop projects in Vietnam," said Mr. Craig Duffy, Managing Director and Fund Manager of GLP.
"In the first 3 to 4 years, GLP expects to build from 1 to 1.5 million square meters of total floor area. In other areas where GLP is an active developer of logistics assets such as China, Japan, Europe, Brazil, and India, development funds have been established with major investors, and we also have similar plans in Vietnam," added Mr. Craig Duffy.
Also in May 2021, ESR Cayman Ltd. and BW Industrial Development Joint Stock Company announced a joint venture to build a project in My Phuoc 4 Industrial Park (Binh Duong province). This project is expected to have a total area of about 240,000 square meters, providing modern facilities to serve the logistics and light industrial sectors once completed.
Maersk Group from Denmark has also strengthened its logistics and distribution capabilities in Vietnam by opening 2 new facilities in Binh Duong and Bac Ninh, adding 38,000 square meters of warehouse space to the existing 11 facilities in Vietnam.
Ms. Trang Bui, Market Director at JLL Vietnam, said that in just the past 2 years, about $3 billion has been invested in Vietnam's warehouse and logistics system.
"The shifting of supply chains is making Vietnam a global logistics center, not only for domestic transportation," Ms. Trang Bui stated.
Statistics from JLL Vietnam also show that dozens of international brands have relocated or expanded their production to Vietnam, indicating the immense potential of Vietnam's logistics industry.
Cre: Baodautu.vn
