According to Michael Chan, sales director of BW Industrial Development JSC, the pandemic has changed the manufacturing and warehousing landscape. Potentially arising factors in the future, such as new COVID-19 variants, rising oil prices, and energy-related problems, may also have a bigger impact on the warehousing and logistics industry.
“Generally, there are myriad problems and uncertainties to deal with. Amid potential obstacles, and leveraging the nation's strategic position and stable policies, many investors have chosen Vietnam instead of other Southeast Asian countries to invest in,” said Chan.
In the post-pandemic era, and as weak links in the global logistics chain become increasingly apparent, foreign investors have been gearing towards the industrial parks (IP) that are ensuring maximum chain continuity.
|Nam Dinh Vu IP has quickly become an appealing destination to investors thanks to its seamless infrastructure
As the investor of the non-tariff zone belonging to Nam Dinh Vu IP, Nguyen Thanh Phuong, general director of Sao Do Group stated, “Over the past two years, the pandemic has caused supply chain disruptions, unveiling limitations and shortcomings in the development of IP infrastructure in Vietnam.”
According to Phuong, since commencing the construction of Nam Dinh Vu IP, Sao Do Group determined that having an internal seaport is the IP's key advantage, so the developer used 200 hectares to develop a seaport and associated logistics area.
|A modern warehouse system to beef up e-commerce activities is gradually taking shape at the Nam Dinh Vu IP site, meeting the demands of new partners and ramping up the IP's attractiveness.
This area currently features seven container and general cargo berths, bonded warehouses, and logistics areas that meet modern standards.
“However, that alone is not enough. In the context of global supply chain disruption, foreign investors are more concerned about warehousing issues and modern inventory systems for e-commerce activities,” Phuong emphasised.
Sharing the same thought, Chan noted that when looking for investment locations, foreign investors always give priority to destinations with favourable conditions for the development of the logistics chain to minimise the impact of unexpected factors.
“The pandemic has altered warehousing demands. Retailers want to keep more inventories of raw materials and finished products, leading to soaring demand for warehouses close to ports and production areas,” said Chan.
Grasping this trend, many secondary investors in ready-to-serve factories and warehouse developments have chosen Nam Dinh Vu IP with its seaport advantage, with JD Property's project being one such project.
|The JD Project is moving quickly through the development pipeline
In mid-May, JD Future Explore V Limited (Hong Kong) held the groundbreaking ceremony of the JD Property Logistics Park Haiphong 1 project in the non-tariff zone of the Nam Dinh Vu IP.
With a total investment of $32 million, this investor will build warehouses for rent from 5,000-55,000 square metres.
It is expected that the project will be implemented from the second quarter of 2023 and flexibly meet the needs of investors from assorted industries and different countries. In addition, JD Property is also ready to provide ready-to-serve warehouse solutions according to customers' requirements.
JD Property belongs to JD.com Group, one of China's leading e-commerce groups. In Vietnam, JD.com Group is also known as the biggest strategic shareholder of the e-commerce platform Tiki.vn.
As not only a retail system that competes directly with Alibaba, JD Property also owns a system of more than 900 international standard warehouses, accounting for about 13 million sq.m worldwide.
This shows that a modern warehouse system to beef up e-commerce activities is gradually taking shape at the Nam Dinh Vu IP site, meeting the demands of new partners and ramping up the IP's attractiveness.
|Granting an investment certificate to the new investor at Nam Dinh Vu IP
Nam Dinh Vu IP has recently attracted a string of new investment projects including GNP Nam Dinh Vu Industrial Centre by Classic Leaf Vietnam Co., Ltd.
In addition to this, the Nam Dinh Vu development project CN3-03 by ESR V Investor 4 Pte., Ltd. – with a total investment capital of $33 million and a scale of 120,000sq.m – has received an investment certificate to trade in logistics and warehousing services. The project is expected to come on stream in the fourth quarter of 2024.
As well as injecting millions of dollars into building synchronous and modern infrastructure, Sao Do Group and Nam Dinh Vu IP also offer many incentives such as reducing infrastructure management service fees and applying a one-stop-shop mechanism to support investors at various stages of a project’s implementation to quickly and effectively bring projects into operation.