Vietnam needs additional credit programmes if it wants to entice more international investors, commented Paul Wee, CFO of BW Industrial Development.
|Paul Wee, CFO of BW Industrial Development JSC |
The Vietnam Industrial Property Forum 2023, organised by VIR, took place in Ho Chi Minh City on the morning of August 24.
Speaking at the first discussion session, Wee said that many large enterprises and corporations have moved out of China recently. Among their chosen destinations, India, Indonesia, and Thailand currently stand out as some of the most attractive options.
According to Wee, each investor will have their own criteria when choosing where to invest. However, in Vietnam, there are three factors that need to be improved.
The first issue is related to the infrastructure system, which is an essential aspect of development.
Vietnam needs more highways in the future. Moreover, investors not only want to see new roads under construction but also want to see firm commitments to completion timeframes. When key infrastructure projects run on schedule, they are a huge boost to the investment environment in general.
“Currently, there are many important projects that have been delayed. The government needs to accelerate quickly to increase international investor confidence,” said Wee.
He added that, large investors also need assurances in terms of the energy supply. They will not accept three days notice of their plant facing a 24-hour power cut. Accordingly, it is necessary to provide stable services that investors can rely on.
Thirdly, Vietnam is developing and attracting advanced, high-tech fields. However, along with this, education and training are also essential.
"When big investors come to Vietnam, they will draw in others. But they need high-quality local human resources to employ in their factories. Therefore, Vietnam needs to promote education and training to increase the supply," Wee added.
“We have a goal to make Vietnam a Southeast Asian leader in these regards. The aforementioned factors can pose challenges that cause investors to hesitate,” the CFO continued.
From the perspective of an industrial real estate developer, Wee added that Vietnam needs more credit programmes to encourage investment.
“When a country has credit schemes and mechanisms to promote business development, it will certainly gain more investors,” he said.
BW Industrial Development JSC is present in both the North and the South of Vietnam. Wee said that the northern region is attracting more investors – known as queen bees – than other regions because it is taking advantage of the available ecosystem.
The South has been growing a bit more slowly, but recently, there have been many technology investors flocking to the area.
The nation's main advantage is cost. Because the investment flow moves from a developed country to a developing one, the financial benefits are an important factor when investors consider their options.
| ||BW Industrial setting the market standard |
Established in 2018 by a joint venture between Warburg Pincus and Becamex IDC, BW Industrial Development JSC has become the largest and fastest-growing logistics and industrial for-rent platform in Vietnam. Lance Li, CEO of BW Industrial Development JSC, talked with VIR’s Bich Ngoc about his assessment of the development of the market.
| ||Innovative answers for the urban logistics industry |
Vietnam is well positioned as the next ideal destination for the large consumption markets in Asia. This is explained by the outstanding growth in spending of the middle class in Vietnam lately. Specifically, just under 10 per cent of the population participating in this class actively shopped in 2000, and this proportion has quadrupled in just two decades.
| ||ESR scoops up strategic equity stake in BW Industrial |
ESR Group Ltd. (ESR), through its wholly-owned subsidiary, has acquired a strategic equity stake in BW Industrial Development JSC (BW).
| ||All you need to know about built-to-suit warehouses |
Built-to-suit warehouses offer cost-efficient and innovative solutions to help improve operations. As e-commerce demand grows, the rapidly growing built-to-suit warehouse model provides an alternative for businesses that need warehouse space.