According to Reuters, GLP, the largest warehouse operator in Asia, is planning to set up a joint venture in Vietnam capitalized at $1.5 billion. This will be its first warehouse facility in Southeast Asia. 

GLP is registered in Singapore, managing 64 million logistics real estate in 16 countries, including Japan, Brazil and Poland. It is still unclear about the time to establish the joint venture.

GLP sees great potential for it to expand business in Vietnam, where the logistics real estate is still in its early development stage. Yang, former president of GLP, said a lot of customers from Europe, Japan and China have shown their interest in this new market.

Vietnam continues to attract more big investors in the world, or ‘eagles’ as called by Vietnamese economists, especially when international manufacturers are looking to diversify their production facilities instead of relying on China.

Realizing the great opportunities in Vietnam some years ago, the US private fund Warburg Pincus joined forces with Vietnam’s Becamex IDC to set up a joint venture to develop a system of ready-made workshops for leasing, modern logistics facilities for leasing, and products related to industrial real estate.

Established in 2018, the joint venture has initial investment capital of over $200 million.

Mapletree, another investor from Singapore, owns and manages the total assets worth $719.2 million in Vietnam, with facilities in Hanoi, HCM City, Binh Duong and Bac Ninh in eight real estate and logistics projects.

In the context of increased protectionism all over the globe, Vietnam continues making new records in exports andis on the way to develop into a new manufacturing and processing center.

The country witnessed exports growing by 16.8 percent per annum in 2010-2019 and had a trade surplus of $9.9 billion in 2019.

Consultancy firms reported that the demand for land to develop logistics facilities has increased from foreign investors. Preferential tariffs and low outsourcing cost are also one of the factors that have made Vietnam attractive in the eyes of foreign manufacturers and supply chains.

It is expected that the total area of ready-made workshops for lease in southern key industrial provinces and cities will reach 2.7 million square meters by the end of the year, an increase of 28.2 percent over the last year.

Cold and cool storage is a new trend in the logistics industry as fresh food distribution networks have been expanding rapidly.

In areas with limited industrial land supply, multi-storey storehouses have appeared to satisfy the demand for larger storage space from e-commerce firms. 

M. Ha

Only 5% FDI projects in Vietnam use high technologies

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

FDI and the 30-year concern about high-tech applications

Only 5 percent of foreign invested projects in the last 30 years have used high technology. This is a lesson for Vietnam during the new FDI (foreign direct investment) wave.