BW BROKER QUARTERLY UPDATE

ISSUE 8: Q4-2021

VIETNAM’S LEADING FOR-RENT

INDUSTRIAL DEVELOPER

Q4 2021

BW IN THE NEWS

VIETNAM INVESTMENT SERIES EPISODE 2 | HAI PHONG

Hai Phong’s undeniable competitive advantage is largely driven by the expansion of the prestigious “Queen Bee” vendor list, which now includes LG Display, Vinfast, Fuji Xerox, Pegatron, Chevron and various other electronics, machinery, and high-tech tenants that have recently relocated to the country.

BW FOSTERS A CULTURE OF GIVING BACK AS VIETNAM BATTLES THE PANDEMIC

As BW continues on its growth trajectory, real estate news source Mingtiandi spoke with CEO Lance Li about the company’s commitment to supporting Vietnam in the fight against COVID-19 and beyond.

The company strives to improve gender equality, achieve zero workforce fatalities, furnish 80% of southern projects with renewable energy source by 2026, deliver five green-certified projects, and invest significantly in social enterprises and local community foundations by 2030.



COVID-19 Vaccination Campaign
27th June 2021

BW shows support at the Tan Phu Trung Industrial Park facility, which saw Ho Chi Minh City’s largest-ever COVID-19 vaccination campaign.

Donation Towards Vaccine
19th July 2021

BW donates VND 1 billion to the Vietnam Fatherland Front Committee of Binh Duong Province in response to a call for public donations to buy vaccines.

Warehouse-turned Treatment Center
30th July 2021

BW and strategic partner ESR convert an 80,000 sqm ready-built warehouse in the My Phuoc 4 Industrial Park into a COVID-19 field treatment center in response to the evolving pandemic. With an 11,800-bed capacity, it is one of the few field treatment centers in the country with the capacity to appropriately segregate and treat a range of COVID-19 patients, from asymptomatic to severe cases.

COVID-19 Vaccination Campaign
10th August 2021

BW coordinates with local authorities to secure vaccinations for the BW Supply Chain City Industrial Park tenants to ensure a safe environment for all.

PPE Donation
17th August 2021

BW donates 1,000 personal protective equipment sets to Cu Chi Hospital and Thu Duc Hospital to aid in the fight against COVID-19.



BW PROUDLY SPONSORS "NỐI VÒNG TAY LỚN" CONCERT

Over the past few months, the organizing team poured their hearts into making the concert happen, hoping that the music would connect one heart to another while mentally and spiritually encouraging Vietnamese citizens to unite and overcome the pandemic.

BW ONLINE EVENTS


STRENGTH, RESILIENCE, AND CONTINUED EXPANSION

Agenda:

  • Regional Industrial Market Q3/21
  • Vietnam Industrial Market Q3/21
  • Driving forces for industrial demand in Vietnam
  • Vietnam - an emerging market for e-commerce

*This event is conducted in Chinese (with English translation)

UPCOMING ONLINE EVENTS

2021 CHINA - INDIA - VIETNAM ELECTRONICS (MOBILE) INDUSTRY ANNUAL CONFERENCE AND AWARDS CEREMONY

Agenda:

  • Industry data announcement
  • Industry analysis report
  • Industry leaders’ presentation and explanation about technology and products
  • An interpretation of various countries’ investment policies
  • Dissemination of investment experience
  • Press conference

Organizer: India China-Mobile-Phone Enterprise Association, Vietnam China-Mobile-Phone Enterprise Association

Co-organizer: Institute of Sino-India Comparative Study (JiNan University), Jilian Consultants

Venue: ShenZhen Main Exhibition Hall - India Branch Exhibition Hall - Vietnam Branch Exhibition Hall

Date: 9 December 2021 | 13:30-21:00 (China time, including dinner time)


Register HERE




VIETNAM REAL ESTATE SYMPOSIUM 2021 – WHAT’S NEXT

In response to current COVID-19 restrictions, AusCham and Cushman & Wakefield will postpone the Vietnam Real Estate Symposium 2021 – ‘What’s Next’ in HCMC to Thursday, 9 December 2021. This decision follows advice from local authorities and honors our duty of care for all Members, Friends, and the General Public who could potentially be at risk of virus transmission.

Organizer: Co-hosted by AusCham and Cushman & Wakefield

Venue: Park Hyatt Saigon, 2 Lam Son Square, District 1, Ho Chi Minh City

Date: Thursday, 9 December 2021


Register HERE


SITE AVAILABILITY

(Latest update as of 22 October 2021.
Please speak with your favorite sales representative before confirming with your client)


SOUTH

Location Project Construction
completion
Available GLA
(sqm)
Binh Duong Bau Bang Pre-phase & Phase 1, 2 06/2019 6,300
Phase 3 - 7 04/2020 11,131
Bau Bang Extension Phase 1 10/2022
(tentative)
535,181
My Phuoc 3 Phase 1, 2, 3 12/2019 1,328
Phase 4, 5, 6 05/2020 -
My Phuoc 4 Phase 1 07/2021 69,572
Dong Nai Nhon Trach 2 - Loc Khang Phase 1 08/2022
(tentative)
159,185
Dau Giay Phase 1 08/2022
(tentative)
83,907
Nhon Trach 1 Phase 1 10/2022
(tentative)
75,550

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 04/2020 -
Phase 2 07/2021 58,509
Phase 3 06/2022
(tentative)
104,318
Hai Phong VSIP Hai Phong Phase 1 04/2020 96,324
Phase 2 05/2021 16,308
Nam Dinh Vu Phase 1 12/2021 62,135

SOUTH

Location Project Construction
completion
Available GLA
(sqm)
Binh Duong VSIP 2A Plot 1 05/2021 -
My Phuoc 4 Plot 1 08/2021 141,528
Tan Dong Hiep B Plot 1 Q2/2022
(tentative)
52,104
Dong Nai Nhon Trach 2 - Loc Khang Plot 1 Q2/2022
(tentative)
88,614
HCMC Tan Phu Trung Plot 1 03/2020 -
Plot 3 04/2021 85,449
Plot 4 07/2021 -

NORTH

Location Project Construction
completion
Available GLA
(sqm)
Hai Phong Deep C Plot 1 07/2021 -
Plot 2 04/2022
(tentative)
54,801


STANDARD FITOUT
GLA (sqm.) Minimum 500 sqm. We also offer built-to-suit for requirement 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 respective 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 25 August, The White House issued a statement highlighting the enhancement of the US-Vietnam Comprehensive Partnership, affirming that US Vice President Kamala Harris’s visit to Vietnam signified the US’s deep commitment to the region as well as the US-Vietnam relationship.

Despite COVID-19 impacts, foreign direct investment (FDI) inflows into Vietnam during the first nine months of this year rose 4.4 percent year on year to USD 22.15 billion, reported the Ministry of Planning and Investment.

Of the 18 sectors receiving investment from foreign investors in the first nine months of this year, processing manufacturing took the lead with USD 11.8 billion, accounting for 53.4 percent of the total FDI.

Despite the complicated developments of the COVID-19 pandemic, many foreign investors, particularly those in the electronics industry, continue to prefer Vietnam as a destination for production bases, according to Fitch Solutions.

As many as 65 percent of foreign electronics enterprises set up their production bases in northern localities of Vietnam, while about 30 percent built facilities in the southern region with a few in the central region.

The y-o-y growth rate for 2020 is estimated at

Vietnam’s semiconductor market is poised to grow by USD 6.16 billion from 2020-2024, progressing at a compound annual growth rate of almost 19 percent, according to market research firm Technavio.

Despite the impacts of the current pandemic, foreign direct investment (FDI) volumes into Haiphong have still shown little interruption.

By the end of 2021, LG Display is expected to raise its capital by an additional USD 1.5 billion. In addition, satellite and ancillary businesses of LG Group have also flocked to Haiphong. Meanwhile, Japan’s Bridgestone Group has poured in USD 1.2 billion, or Regina Miracle Hong Kong at USD 0.9 billion in the port city.

The Ho Chi Minh City Beltway 4 is expected to be 197.6 km, running through Ho Chi Minh City and the four southeastern provinces of Ba Ria-Vung Tau, Dong Nai, Binh Duong, and Long An, joining the southern economic hubs.

These four provinces are currently among Vietnam's most attractive investment destinations.



MANUFACTURING

Thailand’s SCG Packaging Pcl (SCGP) recently announced a USD 353.93 million expansion in its packaging paper business in Vietnam, anticipating growth in demand.

A new facility will be built in northern Vietnam’s Vinh Phuc province and is expected to begin operations in early 2024. It will raise total production capacity to 870,000 tons of packaging paper per year, SCGP said in a statement.

Taiwan’s largest bicycle manufacturer, Giant Group, will inject USD 48 million into a new factory in the southern province of Binh Duong.

Giant Group’s investment also signifies the interest of Taiwanese investors in Vietnam generally and Binh Duong specifically. Presently, Taiwan (China) remains the largest foreign investor in Binh Duong.

Panasonic Corporation recently announced that two of its subsidiaries will produce and market indoor fans at a USD 45 million new factory in Binh Duong beginning next month.

The site is expected to become a major production hub in the region, producing ventilating products not only for the Vietnamese market but also for the whole of Southeast Asia, the Middle East, and Africa.

LG Display Vietnam recently received an adjusted investment certificate for its USD 1.4 billion raise from the Haiphong Economic Zone Authority. This new investment has expanded its total in the country to USD 4.65 billion.

The additional USD 1.4 billion will increase the monthly manufacturing capacity of plastic OLED screens to 13-14 million from almost 10 million.

Swedish company Tetra Pak announced an additional EUR 5 million (USD 5.85 million) investment in its EUR 120 million packaging plant in the southern province of Binh Duong that will increase its capacity by 43 percent.

The investment shows the company’s confidence in Vietnam’s post-pandemic recovery, its CEO, Eliseo Barcas, said.

According to industry insiders, Samsung Display, which makes the screens for Samsung phones, is reportedly considering increasing the yearly output of foldable displays at its Bac Ninh facility in Vietnam to 25 million from 17 million.