BW Industrial Development Joint Stock Company, Vietnam’s leading industrial and new economy real estate developer, announced its acquisition of 20.9 hectares (51.6 acres) of land in Vinh Loc 2 Industrial Park and 22.3 hectares in Xuyen A Industrial Park. The transaction will mark BW’s first entry into Long An Province, strengthening its presence in greater Ho Chi Minh City.
Vinh Loc 2 Industrial Park is situated along National Route 1A and the Ho Chi Minh-Trung Luong Expressway, which is a landmark location granting access to central Ho Chi Minh City from the Mekong Delta. In addition, surrounded by the neighbouring Thuan Dao and Phuoc Long industrial clusters and various Queen Bee sites, the site is excellent for city distribution, with a less than 50-minute drive to the southern hub’s CBD. Vinh Loc 2, which comprises a 213,000 square metre (2.3 million square foot) double-storey modern institutional-grade logistics facility equipped with ramps, is scheduled for completion in the second quarter of 2023.
Xuyen A Industrial Park is located less than 10 kilometres (6.2 miles) from Tan Phu Trung, where BW has successfully operated an e-commerce hub for more than two years. Ideally situated 30 minutes from the Tan Son Nhat airport and 90 minutes from the Cat Lai port, the site will create synergy and value across BW’s platform, amid the increasingly limited land supply in Tan Phu Trung. The project, which will include a 220,000 square metre two-storey modern institutional-grade logistics facility with ramp access, is scheduled for completion in the fourth quarter of 2023.
Lance Li, CEO of BW, said: “We expect 2022 to be an exciting year for both the industrial and logistics real estate markets. Logistics delivery efficiency has become a strategic and fundamental value proposition for e-commerce giants and express companies. For them to work, good warehousing locations and strong infrastructure are vital.
“For manufacturing, despite the disruption caused by COVID-19, Vietnam remains an important destination for foreign direct investments, as evidenced by the $31 billion of committed foreign direct investments in 2021, up 9.2 percent year-on-year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment. Many of our clients are waiting for their visa application to be processed to be in Vietnam to make key decisions for their businesses.
“Given the high purchasing power in Ho Chi Minh City, Long An is an attractive location, especially for agricultural, seafood, retail, and e-commerce companies looking to serve the local market. With Vinh Loc 2 and Xuyen A, we look forward to diversifying our segments by targeting budget-conscious tenants while expanding our reach southwest of greater Ho Chi Minh City.”
Well-established as the largest developer of for-rent industrial and logistics properties in Vietnam, BW maintains its market leadership position by pursuing growth through disciplined acquisition of high-quality assets, well-situated land parcels, and organic development. In addition, the company diversifies its products in each key market to capture both high- and low-budget tenants.
Nguyen Thanh Thanh, head of Long An Economic Zone Authority (LAEZA), commented on the deal: “Despite the complicated global epidemic of the last two years, we have witnessed a healthy influx of foreign direct investment (FDI) in Long An with a total registered investment capital of $3.84 billion, accounting for 12.3 percent of the total FDI attraction. Long An’s key advantages include its low labour costs, large-scale international seaports, and close proximity to Ho Chi Minh City. With the resumption of cross-border travel and planned infrastructure development, i.e., Ben Luc-Long Thanh Expressway, the province can expect more global and domestic investors to expand their businesses in the country’s second most popular investment destination in 2021. In 2022, the province is determined to implement a one-day issuance of investment registration certificate (IRC) for large-scale projects with low environment impacts. We also believe BW’s ready-built facilities will be well-received by the market as they enable manufacturers and warehouse operators alike to operate efficiently while providing capacity for expansion without the need to rack up massive investments in fixed assets.”