KCN Vietnam's proud development journey

Dinh Thanh Phuong, business development director at KCN Vietnam Group

KCN Vietnam has made solid steps in recent years, particularly in how it has enticed talents. Can you share with us some highlights around this?

From its inception, the company's leadership has aimed to lead KCN Vietnam to become one of the sector's top performers, leveraging quality and sustainable development. A company can only thrive with a dedicated team behind it, and we are so proud of our team members.

Although relatively new, our company encompasses many sectors, including business development, sales and marketing, construction, legal, customer services, and property management teams.

We have leveraged a state-of-the-art digital management system to standardise working procedures. We have also made great strides to enable the growth and success of our partners from factory and warehouse to shelf.

What can you tell us about KCN Vietnam's initial steps?

KCN Vietnam came into being in January 2021 with just a few members and renting an office from a member company within the ecosystem.

We have ramped up our efforts to reinforce the team and its finances, two essential factors for developing any industrial real estate business. By the end of 2021, the company had acquired approximately 150 hectares of land for development.

During the pandemic, KCN Vietnam powered through the hard times by completing all the transactions and getting all the construction licences ready.

By the time restrictions were lifted, we had completed a 7-ha project in Nhon Trach 5 industrial park (IP). Additionally, a 16.3-ha project in Ho Nai IP, Dong Nai province, 13.4-ha project in Phu An Thanh IP, Long An province, and a 10.6-ha project in Deep C industrial zones (IZs), Haiphong city, are in their final completion steps.

We have customers from South Korea, China, Switzerland, the US, Germany, and Malaysia. Our existing land bank includes 185ha that is currently available, with more additions in the pipeline.

We have a great management team, a sustainable financial background, and an excellent execution team. We all share the same vision, so we do our best with our outstanding people and available resources, the result comes.

KCN Vietnam was honoured to be awarded the Top 10 Developers 2023 at the BCI Awards. What is the significance of this to the company?

KCN Vietnam Group shining at BCI Asia Awards 2023

BCI Asia Awards is an annual pilgrimage for the region's top architects and building professionals. We are so delighted that our efforts have been recognised both internationally and domestically. However, we also feel burdened to remain in the top 10. We are committed to making further strides and reaching our goals and targets.

With a pioneering mission to develop premium and sustainable industrial real estate projects, what do you think are the comparative advantages of your business in such a competitive environment?

I am proud that KCN Vietnam is a Vietnamese company. Our global experience and local expertise have supported us in understanding the local market and allowed us to explore all the opportunities with minimised risk. We have also built strong, long-term partnerships with various suppliers and consultants. In addition, we have prepared a sustainable financial foundation for long-term development.

Finally, our management team has diverse experience in both global and local markets. We have embraced a digital management system to simplify our internal procedures, boost work efficiency, and optimise customer service effectiveness. We are ready to take the lead.

Would you share the company's business plan for 2023?

Our critical targets for 2023 will be developing and constructing the remaining land bank at existing projects, including KCN Ho Nai, KCN Phu An Thanh, and KCN Deep C projects, which are in the final stages of completing phase 1.

Aside from those projects, we will target land transactions for other strategical projects in Nhon Trach 6 IP in Dong Nai, Thuan Thanh IP in Bac Ninh, and Tan Hung IP in Bac Giang and An Phat IP in Hai Duong province to welcome new foreign direct investment flows to Vietnam and local expansion.

KCN Vietnam is also constantly looking for strategic locations to expand its investment portfolio and land bank.

What's the current market trend in your view?

Last year marked a significant increase in the supply of ready-built factories and warehouses. Domestic and foreign developers are increasingly improving product quality and customer services. Both signal a mature and growing industrial real estate market.

As far as we know, rental requests from electronics and automotive manufacturers in the northern region continued to increase in the first months of 2023 and are expected to linger throughout the year.

Moreover, we flagged the burgeoning requirements for built-to-suit facilities that are built for rent according to the tenant's design and specifications. This shows the increase in the production scale of existing businesses and the shift of new investment into the Vietnamese market.

For developers like KCN Vietnam, we are always looking for new strategic locations to develop projects. In this context, the land supply is increasingly limited. Options like Bac Giang and Long An provinces are seen as promising locations for expanding investment and spurring industrial real estate development.

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