The venture will initially focus on the two largest markets in the country, Greater Hanoi and Ho Chi Minh City and its nearby provinces. The partnership enables SLP to leverage GLP’s fund management, development, and operational expertise and resources, as well as GLP’s extensive global customer network.
|GLP is a global leader in logistics real estate with a 64 million square metre footprint across 16 countries including Brazil, China, Europe, India, Japan, the United States, and Vietnam |
Ming Mei, co-founder and CEO of GLP, said that within Southeast Asia, Vietnam is one of the most attractive markets given its population dynamics, growing economy, and middle class which support domestic consumption.
“When GLP enters a new market, growth, and scalability are two key factors we consider. We see similarities between Vietnam and our logistics businesses in China, India, and Japan and know we can leverage our expertise and knowledge from our experiences in those markets to create a strong and sustainable business in Vietnam,” said Mei.
Kent Yang, a founding partner of SLP and former president of GLP China, said: “With a population soon expected to reach 100 million people, Vietnam has a large domestic market and a growing middle class. Many Vietnamese are digital consumers, spending approximately seven hours a day online. These factors and trends have made online shopping more accessible to a larger portion of the population and is driving demand for more efficient and more modern logistics warehouses in the country.”
Meanwhile, Chih Cheung, a founding partner of SLP, noted that with a young and skilled workforce, strategic geographical location, and supportive government policies on investment, Vietnam is poised to benefit from further diversification of the global supply chain and manufacturing, which will fuel demand for logistics infrastructure to support operations of both local and global companies.
In coordination with the announcement of the joint venture, SLP announced it secured approximately 335,000 square metres of land in Greater Hanoi and Greater Ho Chi Minh City for the development of three modern logistics assets which will have 210,000 square metres of net leasable area upon completion.
Two of the developments, SLP Park Bac Giang and SLP Park Bac Ninh, are strategically located in the north of Vietnam.
SLP Park Bac Giang, with a net leasable area of 80,000 square metres, has received 50 per cent pre-leased commitment from Jusda, the former central logistics unit of Foxconn group and the most professional supply chain logistics technology service platform in the manufacturing industry, as well as an existing GLP customer.
The third property, SLP Park Long Hau, is strategically located in Long Hau, Long An province and is part of the greater Ho Chi Minh City area, which serves as a bridge between Ho Chi Minh City and the 12 provinces in the Mekong Delta.
SLP will initially focus on developments in the two major regions that are strategically located as logistics or distribution hubs and will also seek to strategically acquire logistics assets that support its overall growth goals in the country.
GLP forms strategic partnerships that create opportunities and synergies to expand its core logistics real estate business globally.
Over the last several years, GLP has strengthened its global footprint to 64 million square metres by acquiring assets, portfolios, businesses, and forming partnerships and now operates in 16 countries across Brazil, China, Europe, India, Japan, the US, and Vietnam.