BW BROKER QUARTERLY UPDATE
ISSUE 9: Q1-2022
VIETNAM’S LEADING FOR-RENT
INDUSTRIAL DEVELOPER
Q1 2022BW BREAKING NEWS
EPISODE 3 | DONG NAI
Dong Nai’s all-inclusive infrastructure consists of an extensive network of national routes, inter-provincial and inter-district roads, airports, rail hubs and ports.
In the future, the Long Thanh International Airport, which will have an annual capacity of up to 100 million passengers and five million tonnes of cargo, is expected to enable Dong Nai to become a leading center of logistics, industry and services in Vietnam as well as Southeast Asia.
BW has acquired approximately 74,000 square meters of prime land bank in the Bac Tien Phong Industrial Zone in Quang Ninh that has been developed by DEEP C Industrial Zones (“DEEP C”). This acquisition marks BW’s first footprint in Quang Ninh Province and our third collaboration with DEEP C, allowing us to expand our presence across key industrial markets in northern Vietnam.
BW CEO Mr. Lance Li said, “This project encompasses approximately 237,455 square meters of land acquired in partnership with DEEP C since the end of 2019. As we’ve seen tenants move from Bac Ninh to Bac Giang with Hai Phong’s industrial parks reaching full occupancy, we expect a similar trend among investors seeking space in Quang Ninh.”
As of October 2021, 79% of BW’s ready-built properties were located in southern Vietnam, 18% were in the northern region and the remaining were in the central region. Due to our extensive network of projects across Vietnam, the COVID-19 pandemic has had an insignificant effect on BW’s operations.
CORPORATE NEWS
BW HONORED AMONG TOP 10 DEVELOPERS 2021 AT THE BCI ASIA AWARDS, AFFIRMING MARKET-LEADING POSITION
BW was named among the Top 10 Developers 2021 by BCI Asia on January 19, 2022, at the Sheraton Saigon Hotel & Towers in Ho Chi Minh City. The award is an honor and acknowledgment of BW’s strength and commitment to growth in recent years.
To date, BW is Vietnam’s largest and fastest-growing logistics and industrial for-rent platform, with over 7.76 million square meters of prime industrial land under control across more than 35 projects in 26 strategic economic locations throughout Vietnam. BW currently has 2.2 million square meters of GFA completed or under construction.
Celebrating building and design leadership for 16 years, the BCI Asia Awards are the most coveted in the regional building industry and serve as a platform for domestic and international networking among elite architecture firms, property developers, manufacturers and service providers.
BW ORGANIZES VALOMA FIELD TRIP TO TAN PHU TRUNG INDUSTRIAL PARK
On January 22, 2022, BW Industrial Development Joint Stock Company successfully collaborated with the Vietnam Association for Logistics Manpower Development (VALOMA) to organize a field trip for lecturers and students from many universities in southern Vietnam – including the Foreign Trade University, Banking University of HCMC and HCMC University of Transport, among others – to visit BW’s ready-built warehouses as well as the logistics facilities of tenant companies such as Best Inc. and J&T in the Tan Phu Trung Industrial Park.
During this trip, students were able to witness distribution center operations such as automated loading/unloading systems and sorting systems. In addition, participating businesses have committed to utilize VALOMA’s talent network for their internship programs and recruitment plans.
This field trip is one of BW’s corporate social responsibility (CSR) activities. The company has an established plan to invest significantly in social enterprises and local community foundations through 2030. We are committed to protecting the country’s natural resources, our stakeholders and communities to become a better corporate citizen.
OUR EVENTS
For those who missed the Vietnam Logistics Forum 2021 chaired by Vietnam’s Deputy Prime Minister and hosted by the Ministry of Industry and Trade on December 14 in Hanoi, you can watch the recorded presentation of BW CEO Lance Li regarding supply chain resilience and the future of logistics facilities in Vietnam via the below link.
UPCOMING FAIRS & EVENTS
VIMF 2022 is an international industrial exhibition in the form of a road show held in key cities with strong manufacturing industries, connecting suppliers of machinery, parts, equipment, technology and process solutions necessary for the automobile, electronics, machinery, textile, footwear and high-tech industries of related manufacturers.
With 13 successful editions to date in major cities and provinces, VIMF has been built a prestigious brand with ideal destinations, quality exhibitions and effective networking while receiving high appreciation from customers, and business communities across Asia.
Venue: World Trade Center (WTC) Binh Duong
Organizer: OMG Events Management Co., Ltd
Date: June 8-10, 2022
SITE AVAILABILITY
(Latest update as of March 2, 2022.
Please speak with your favorite sales representative before confirming with your client)
READY-BUILT FACTORY
SOUTH
| Location | Project | Construction completion |
Available GLA (sqm) |
|
|---|---|---|---|---|
| Binh Duong | Bau Bang | Pre-phase & Phase 1, 2 | 06/2019 | 5,400 |
| Phase 3 - 7 | 04/2020 | 107,502 | ||
| Bau Bang Extension | Phase 1 | 04/2023 (tentative) |
535,181 | |
| My Phuoc 3 | Phase 1, 2, 3 | 12/2019 | - | |
| Phase 4, 5, 6 | 05/2020 | - | ||
| My Phuoc 4 | Phase 1 | 07/2021 | 58,288 | |
| Dong Nai | Nhon Trach 2 - Loc Khang | Phase 1 | 08/2022 (tentative) |
159,185 |
| Dau Giay | Phase 1 | 09/2022 (tentative) |
83,907 | |
| Nhon Trach 1 | Phase 1 | 10/2022 (tentative) |
75,550 |
CENTRAL
| Location | Project | Construction completion |
Available GLA (sqm) |
|
|---|---|---|---|---|
| Nghe An | VSIP Nghe An | Phase 1 | 10/2022 (tentative) |
88,409 |
NORTH
| Location | Project | Construction completion |
Available GLA (sqm) |
|
|---|---|---|---|---|
| Bac Ninh | VSIP Bac Ninh | Phase 1 | 07/2019 | 1,537 |
| Hai Duong | VSIP Hai Duong | Phase 1, 2 | 06/2021 | 94,127 |
| Phase 3 | 06/2022 (tentative) |
104,340 | ||
| Hai Phong | VSIP Hai Phong | Phase 1 | 04/2020 | 6,672 |
| Phase 2 | 05/2021 | 16,308 | ||
| Nam Dinh Vu | Phase 1 | 01/2022 | 62,136 |
SOUTH
| Location | Project | Construction completion |
Available GLA (sqm) |
|
|---|---|---|---|---|
| Binh Duong | VSIP 2A | Plot 1 | 05/2021 | - |
| My Phuoc 4 | Plot 1 | 08/2021 | 140,395 | |
| Tan Dong Hiep B | Plot 1 | Q3/2022 (tentative) |
52,427 | |
| Dong Nai | Nhon Trach 2 - Loc Khang | Plot 1 | 08/2022 | 147,688 |
| HCMC | Tan Phu Trung | Plot 1 | 03/2020 | - |
| Plot 3 | 04/2021 | 42,073 | ||
| Plot 4 | 07/2021 | - |
NORTH
| Location | Project | Construction completion |
Available GLA (sqm) |
|
|---|---|---|---|---|
| Hanoi | Phu Nghia | Plot 1 | 11/2022 (tentative) |
14,000 |
| Hai Phong | Deep C | Plot 1 | 07/2021 | 13,538 |
| Plot 2 | 04/2022 (tentative) |
54,801 |
| STANDARD FITOUT | |
|---|---|
| GLA (sqm.) | Minimum 500 sqm. We also offer built-to-suit for those requiring 10,000+ sqm. |
| Lease Term (year) | Minimum 3 years – 10 years |
| Security Deposit | 06 months of gross rent |
ATTRACTIVE COMMISSION FEES THAT ARE THE BEST AROUND! BE OUR BROKER!
- Seek out lessees that satisfy BW’s requirements
- Provide relevant documents and information regarding the prospective facilities and BW’s services to lessees who desire to lease facilities from BW
- Close transactions and contracts with lessees, including IPA signing, payment of deposits and following up to ensure payment
INDUSTRY HIGHLIGHTS
(Follow link to read full articles)
VIETNAM’S BUSINESS ENVIRONMENT
On February 9, Vietnam, together with Australia, officially took charge of the co-chair of the Organisation for Economic Cooperation and Development (OECD)-run Southeast Asia Regional Programme (SEARP) for 2022-2025.
The ministers adopted a joint statement on the people-oriented future partnership for a smarter, greener and more inclusive ASEAN.
Vietnam has so far reopened air routes to 20 countries and territories compared to 28 in the 2019 winter flight schedule before the COVID-19 pandemic broke out, a transport official has said.
Vietnam has been relaxing COVID-19 measures in recent months, with schools reopening and the Government saying it would lift restrictions on arriving international passenger flights.
Smooth factory operations in Vietnam – the second biggest exporter of clothes and footwear to the US after China – will also help free up supply chain bottlenecks that are pushing up inflation around the world.
Vietnam will be a major driver of global trade growth as its exports are projected to grow at an average annual rate of more 7% and cross USD535bn by 2030, according to new research by Standard Chartered.
Vietnam has the second lowest operating costs among nine countries in Asia and is assessed to have high logistics development potential, a report by Singapore-based business transformation consultancy TMX says.
The inflow of foreign investment into Vietnam hit over USD2.1bn as of January 20 – up 4.2% year-on-year – marking good signals for the country's investment attraction, the latest report from the Foreign Investment Agency showed.
Once completed, the routes will connect Dinh Quan, Thong Nhat and Cam My districts and Long Khanh City with Long Thanh International Airport and ease pressure on National Highway 1A, Highway 20, Highway 51, Belt Road 4 and the HCMC-Long Thanh-Dau Giay Expressway.
The National Assembly approved the construction of 12 North-South Expressway sections totaling 729 kilometers – many of which are in the South.
MANUFACTURING
Samsung has received permission to invest an additional USD920mn in its electronic components plant in the Yen Binh Industrial Park, increasing its total registered investment in the province by 68% to USD2.27bn.
With the addition of capital, the firm plans to expand its operation to manufacturing and assembling high-density interconnection electronic circuit board products such as flexible printed circuits, main boards and flip chip ball grid arrays, among others.
Vietnam has surpassed China to become the major manufacturer of Nike sports shoes. According to a report by the Central News Agency of Taiwan (China), Nike’s financial report indicates that up to 51% of Nike sports shoes were produced in Vietnam last year, while the share of production in China fell to 21% – dropping from 35% in 2006.
China's Goertek Group recently increased its capital from USD100mn to USD500mn in a factory specializing in manufacturing electronic products, network equipment and multimedia audio products in the central province of Nghe An, thereby becoming the largest investor in the locality.
Ju Teng International Holdings Ltd has been granted an investment certificate for its project worth USD200mn at Hoang Mai Industrial Park in the central province of Nghe An. The plant will manufacture electronic components, plastic products, spare parts and auxiliary parts for automobiles.
LEGAL UPDATES
Here are this quarter’s legal updates regarding tax, HR and labor issues.
TAX
-
New regulations on origin of goods came into effect in February
On December 9, 2021, the Government issued Decree No. 111/2021/ND-CP ("Decree 111") amending and supplementing a number of articles of Decree No. 43/2017/ND-CP on goods labels, which took effect as of February 15, 2022.
Decree 111 sets forth a labeling principle when the goods' origin cannot be identified. Particularly, the label shall present the place where the final processing step is undertaken. In this circumstance, the following phrases or a combination of the following phrases shall be presented together with the name of the country or territory where the mentioned final processing step is undertaken: 'assembled at', 'bottled at', 'mixed at', 'completed at', 'packed at' or 'labeled at'.
HR & LABOR
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Three-month rental support for workers in industrial zones
This is the content of Resolution 11/NQ-CP on the socioeconomic recovery and development program and implementation and Resolution 43/2022/QH15 on fiscal and monetary policies to support the program issued by the Government.
Workers at industrial parks and key economic regions who rent apartments between January 1 and June 30, 2022, have labor contracts signed before January 1, and who have paid social insurance the month before their firm applies for rent support will get VND500,000 per month for up to three months.
Workers meeting the same criteria but having signed labor contracts for at least a month between January 1 and June 30, 2022, will get VND1 million per month for up to three months.
Workers will have a chance to get a low-interest loan with an interest rate subsidy of 2% per year for two years from 2022-2023 for loans having interest rates above 6% per year and disbursed by the Vietnam Bank for Social Policies in the period of 2022-2023.
-
Gender discrimination to be strictly handled
On December 28, 2021, the Government issued Decree 125/2021/ND-CP on penalties for administrative violations in the field of gender equality, which became effective from January 1, 2022. In particular, the Decree stipulates that the maximum monetary fine for an individual committing administrative violation in the field of gender equality is VND 30mn.
-
Increase 7.4% of pensions, social insurance allowances and monthly benefits
On December 7, 2021, the Government issued Decree 108/2021/ND-CP prescribing the adjustment of pensions, social insurance allowances and monthly benefits.
Accordingly, from January 1, 2022, beneficiaries of pensions, social insurance allowances and monthly benefits before January 1, 2022, are entitled to an increase of 7.4% compared to the amount of December 2021.
Decree 108/2021/ND-CP took effect from January 22, 2022, and replaces Decree 44/2019/ND-CP, dated May 20, 2019.
BUSINESS ACTIVITY
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Continue to cut 37 types of fees and charges to support businesses
The implementation period will be from January 1 to June 30, 2022, for Circular No. 120/2021/TT-BTC stipulating the rate of collection of several fees and charges in order to support and remove difficulties for those affected by COVID-19. Accordingly, there are 37 fees and charges to be reduced with a reduction of 10%-50% compared to current regulations.