Foreign investors attracted to industrial property

Foreign capital continued flowing to industrial real estate via mergers and acquisitions (M&A) in five months of this year, particularly in Hanoi and Ho Chi Minh City.

Foreign investors attracted to industrial property hinh anh 1

A corner of the VSIP Bac Ninh industrial and urban park with full basic infrastructure. 

Singapore’s Boustead Projects, whose affiliate BP-Vietnam Development recently signed an option agreement with Khai Toan Group (KTG) to buy a 49 percent stake in KTG & Boustead JSC, hailed Vietnam as one of the fastest-growing economies in the world with ideal business environment for production and logistics development.

Via its affiliates and joint ventures, Boustead Projects established partnership with KTG to buy Boustead & KTG Industrial Management Company Ltd (BKIM) and proposed acquiring a 49 percent stake in KTG Industrial Bac Ninh Development JSC.

The KTG and Boustead Industrial Logistics JSC (KBIL) is expected to become a leading fund in Vietnam for logistics and industrial property development. It will hold 13 real estate seed assets based in industrial parks (IPs) in Hanoi and Ho Chi Minh City and plan for further expansion via M&A.

Earlier, Hong Kong’s ESR Cayman Limited and BW Industrial Development JSC announced the establishment of a joint venture to develop and own My Phuoc 4 IP in the north of Ho Chi Minh City. Once completed, it will sit on a site of around 240,000 sq.m in service of logistics and light industrial facilities.

Jeffrey Shen and Stuart Gibson, co-founders and CEOs of ESR Cayman Limited, said industrial and logistics property in Vietnam is at premature age, making the country one of the most promising markets in Southeast Asia which benefits from favourable macro-economic factors, including high and stable economic growth, increasing income, emergence of the middle-income class, rapid urbanisation and upgraded infrastructure.

As of the late May, a joint venture between Vietnam’s SEA Logistic Partners (SLP) and GLP China Holdings Ltd purchased five industrial land projects covering nearly 700,000 sq.m in Hanoi and Ho Chi Minh City.

Kent Yang, founding partner of the SLP, also told of a plan to invest some 1 billion USD in logistics real estate across Vietnam in the next 3-4 years.

 

Amid the fourth wave of COVID-19 pandemic, foreign investment in Vietnam still flourished, reaching around 14 billion USD in five months of this year, up 0.8 percent annually.

Real estate was the third largest source of FDI attraction with 1.05 billion USD, or 7.5 percent of the total registered capital. Foreign investors’ capital contribution and stake purchase in the field surpassed 248.4 million USD, up 13.5 percent year-on-year.

John Campbell, head of the Savills Vietnam’s industrial property unit, said the supply of industrial properties in Vietnam is abundant in the short and medium term.

In the first quarter, tens of industrial property development projects in 13 cities and provinces were approved.

According to the Ministry of Planning and Investment, there were 370 IPs nationwide as of the first quarter with a total area of nearly 115,200ha. Of which, 328 are outside economic zones (EZs), 34 in coastal EZs, and eight in border gate EZs./.

Source: VNA

E-commerce changing domestic retail property market

E-commerce changing domestic retail property market

The shift toward e-commerce due to the COVID-19 pandemic has brought challenges to Vietnam’s retail property market, according to Savills Vietnam.

 
 

Other News

.
Overseas Vietnamese firms are suppliers of Vietnamese goods to foreign markets
Overseas Vietnamese firms are suppliers of Vietnamese goods to foreign markets
BUSINESSicon  07/09/2021 

The overseas Vietnamese business community is an important distribution channel to bring Vietnamese goods to the world market, said Minister of Industry and Trade Nguyen Hong Dien.

Welcoming the 'upgraded' CAEXPO
Welcoming the 'upgraded' CAEXPO
BUSINESSicon  07/09/2021 

The 18th China-ASEAN Expo (CAEXPO) will kick off in Nanning, China as scheduled, and here comes the "CAEXPO Moment" again.

Bank stocks decline sharply during pandemic
Bank stocks decline sharply during pandemic
BUSINESSicon  07/09/2021 

Banking stocks have continuously corrected since the beginning of July, with market analysts forecasting the decline in bank asset quality as due to the COVID-19 pandemic.

Deposit interest rates fall, deposits drop to 10-year low
Deposit interest rates fall, deposits drop to 10-year low
BUSINESSicon  06/09/2021 

Commercial banks continued easing deposit interest rates in late August, causing deposits at banks to fall to a 10-year low.

45-day social distancing has hurt Hanoi's economy but public health has been protected
45-day social distancing has hurt Hanoi's economy but public health has been protected
FEATUREicon  07/09/2021 

Hanoi’s economy has suffered heavily from social distancing and travel restrictions over the last 45 days, but in exchange the Covid-19 outbreak has been under control.

All-round report on Vietnam’s startup ecosystem to be unveiled
All-round report on Vietnam’s startup ecosystem to be unveiled
BUSINESSicon  06/09/2021 

The Vietnam Open Innovation Landscape Report 2021, the most comprehensive and up-to-date overview of the local startup and innovation ecosystem so far, is set to be released in December.

Vietnam's steel sales increase due to exports
Vietnam's steel sales increase due to exports
BUSINESSicon  06/09/2021 

Steel enterprises have boosted exports while facing difficulties in domestic consumption due to the COVID-19 outbreak, according to the Vietnam Steel Association (VSA).

Pro-competitive policies in logistics sector can help Vietnam recover from the pandemic
Pro-competitive policies in logistics sector can help Vietnam recover from the pandemic
BUSINESSicon  06/09/2021 

Pro-competitive policies can help Vietnam continue its progress in logistics sector and help the country recover quickly from the impacts of the pandemic, the Organisation of Economic Co-operation and Development said in its two latest reports.

Foreign investors withdraw cash, but will return soon: experts
Foreign investors withdraw cash, but will return soon: experts
BUSINESSicon  07/09/2021 

Market experts forecast that foreign investors will undertake strong net buying in the fourth quarter of this year to prepare for next year’s economic recovery after large-scale immunisation campaigns.

VIETNAM BUSINESS NEWS SEPTEMBER 6
VIETNAM BUSINESS NEWS SEPTEMBER 6
BUSINESSicon  06/09/2021 

E-commerce sales in Vietnam expected to reach $56 billion in next five years

E-commerce platforms resume delivery in HCM City as ban is lifted in red zones
E-commerce platforms resume delivery in HCM City as ban is lifted in red zones
BUSINESSicon  06/09/2021 

E-commerce platforms have resumed deliveries in HCM City and some of the city’s extremely high risk areas (red zones) since August 30, a week after they were banned.

Mooncake makers face unprecedented difficulties
Mooncake makers face unprecedented difficulties
BUSINESSicon  06/09/2021 

Online sales are being implemented by mooncake businesses with a variety of products from the common to the high-end.

Vietnam manufacturing output declines on Covid-19 outbreak
Vietnam manufacturing output declines on Covid-19 outbreak
BUSINESSicon  05/09/2021 

Vietnam’s manufacturers are facing an uphill task to keep operation amid restriction measures.

VIETNAM BUSINESS NEWS SEPTEMBER 5
VIETNAM BUSINESS NEWS SEPTEMBER 5
BUSINESSicon  05/09/2021 

Ports see increase in goods handling despite COVID-19

Finance Ministry urges stricter control over risky corporate bonds in Vietnam
Finance Ministry urges stricter control over risky corporate bonds in Vietnam
BUSINESSicon  05/09/2021 

The Ministry of Finance (MoF) has tightened control over risky corporate bond issuance.

More sci-tech content in upcoming China-ASEAN Expo
More sci-tech content in upcoming China-ASEAN Expo
BUSINESSicon  06/09/2021 

The whole universe hidden in the VR glasses, magnificent images shown on transparent screens, unmanned aircraft applied in seeding and fertilization..., sci-tech exhibition has become the new hot spot in the China-ASEAN Expo (CAEXPO) in recent years.

VIETNAM BUSINESS NEWS SEPTEMBER 4
VIETNAM BUSINESS NEWS SEPTEMBER 4
BUSINESSicon  04/09/2021 

Vietnam scores high in employee experience

Foreign investors keen on education
Foreign investors keen on education
BUSINESSicon  04/09/2021 

Overseas funds continue to cash in on Vietnam’s education sector with a view to diversify investment portfolios.

Rice exporters feel strain of restrictions
Rice exporters feel strain of restrictions
BUSINESSicon  04/09/2021 

The disruption of the production chain in the past few months is pushing rice exporting and processing companies into an increasingly difficult situation.

Garment and textile groups bemoan curbs
Garment and textile groups bemoan curbs
BUSINESSicon  04/09/2021 

With the autumn-winter season coming up, Vietnam’s garment and textile industry could cash in on the increased demand for clothing. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN