Industrial developer can offer supply chain boost for Vietnam

Market experts are increasingly optimistic about industrial real estate, as the recovery of manufacturing activities is expected to fuel demand for industrial zones.

BW Industrial Development JSC (BW) has achieved tremendous growth in the last five years and has emerged as one of the country's top industrial real estate players.

BW oversees a portfolio comprising over 8.5 million square metres of industrial land across 11 provinces in Vietnam

BW was founded in 2018 as a joint venture between Becamex IDC Corp, Vietnam's largest industrial real estate developer, and Warburg Pincus, a major global private equity firm, which recently celebrated its 10^th anniversary of investing in Vietnam.

In an aim to further accelerate growth and consolidate its position in the market, BW brought in Hong Kong-listed real estate giant ESR Group as its lead strategic investor in the first quarter of the year as part of its primary fundraising round of approximately $450 million that also included other top investors in Asia.

Leveraging the strengths of these three blue-chip investors, BW is well-positioned to capture the tremendous growth in Vietnam's logistics and industrial real estate sector, which offers significant opportunities driven by the favourable macro tailwinds and the underserved market.

Vietnam continues to be one of the top-performing economies in Southeast Asia, with its robust macroeconomic fundamentals and strategic policies. Furthermore, the fast-growing economy is underpinned by a thriving digital economy, a burgeoning middle class, and a young and dynamic workforce.

BW's experts observe that the e-commerce market, the engine of Vietnam's digital economy, is expected to grow at a more than 20 per cent compound annual growth rate towards 2025, so the e-commerce logistics space clearly has the potential to grow in the near to midterm to meet the rising demand.

While inquiries from global manufacturers and e-commerce players have been growing rapidly by as much as 75 per cent since the beginning of this year, Vietnam is currently facing limited supply to accommodate the anticipated surge in operational demand and new trends in warehousing logistics.

Lance Li, CEO of BW, said, "At its current stage, the stock of modern warehouses in Vietnam is a mere fraction of countries like China and South Korea. The modern warehouse industry, therefore, is enjoying favourable tailwinds, driven by outsized opportunities in manufacturing, increasing domestic consumption, the rapid growth of e-commerce, and trade activities that are outpacing regional peers.”

BW has delivered strong results over the last five years thanks to favourable factors that have opened up numerous possibilities, cementing its position as one of Vietnam's top industrial logistics real estate platforms.

BW owns a remarkable portfolio in Vietnam, comprising over 8.5 million sq.m of industrial land spanning 40 projects in 11 provinces, with over three million sq.m of ​​completed or under-construction properties.

The developer has demonstrated incredible speed in executing its projects, as the company has already completed nine of the ten projects that are scheduled to be launched in December.

Additionally, BW's properties are leased to both local and global tenants through its experienced and multilingual sales force, with successful pre-leasing and high occupancy. The company's projects in the north region have recorded almost full occupancy.

Since its inception, BW has established relationships with around 250 high-quality tenants from over 20 countries, the majority of which are e-commerce, last-mile delivery, and resilient high-tech manufacturing players such as Shopee, 7-Eleven, HKC, Chevron, and RPAC.

BW's ready-built-factories, a company favourite of electronics manufacturers, currently account for a large share of the company's contracts, indicating Vietnam's manufacturing industry is moving in the right direction.

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.

Accelerating investment capital for industrial property development Vietnam needs additional credit programs if it wants to entice more international investors, commented Paul Wee, CFO of BW Industrial Development.

Warburg Pincus celebrates 10 years in Vietnam Renowned private equity firm Warburg Pincus celebrated its 10th anniversary of investing in Vietnam on November 9 in Hanoi, with the attendance of Marc E. Knapper, US Ambassador to Vietnam, and Tran Duy Dong, Deputy Minister of the Ministry of Planning and Investment of Vietnam .