BW announces groundbreaking of Vinh Loc 2 in Long An, marking its 9th project in 2023

BINH DUONG, [November DD, 2023] – BW Industrial Development Joint Stock Company (the “Company” or “BW”), Vietnam’s leading logistics and industrial real estate developer, has announced the commencement of construction for Vinh Loc 2. Strategically located in Long An Province, the project features a state-of-the-art double-story facility spanning a gross floor area (GFA) of 105,000 square meters. The project, scheduled for completion in December 2024 marks BW’s 9th project this year, cementing its unrivalled position in the market.

The ready-built warehouse enjoys a prime location within the Vinh Loc 2 Industrial Park in the dynamic Long An market. Situated along National Route 1A and the Ho Chi Minh-Trung Luong Expressway, a less than 50-minute drive from Southern hub’s CBD and 75-minute drive from Cat Lai Port, the project offers tenants unparalleled accessibility and convenience. In addition, surrounded by the neighboring Thuan Dao and Phuoc Long industrial clusters and various Queen Bee sites, this site presents compelling opportunities for city distribution, e-commerce, retail, cold storage, and 3PLs operations.

The project features an institutional double-story warehouse with a clear ceiling height of 9 meters, up to 3 tons per sqm of floor loading capacity and ramp access, meticulously designed to integrate the latest in technology and high construction and sustainability standards, to provide tenants with maximum operational efficiency. Aiming for the prestigious LEED Gold certification, the project will incorporate essential features such as solar streetlights, LEED-compliant sanitary wares, and low-emitting materials. In addition, the project will be equipped with an ESFR sprinkler system that is compliant with NFPA 13 standards, eliminating the need for in-rack fire sprinklers for storage applications. This best-in-class facility demonstrates BW’s dedication to establishing a benchmark in the local industrial real estate market and its steadfast commitment to environmental sustainability.

Mr. Lance Li, CEO of BW, remarked, “The growing purchasing power of Ho Chi Minh City makes Long An an ideal location not only for retail and e-commerce companies, but also agricultural and aquacultural players looking to penetrate the local market. Through Vinh Loc 2, we seek to expand our geographic footprint into the southwest of the greater Ho Chi Minh City and serve a broader base of clients, focusing on budget-sensitive customers.

Mr. Li added, “Vietnam is significantly underserved in terms of its modern warehouse supply, especially institutional-grade warehouses. At its current stage, the per capita modern warehouse stock in the country is a mere fraction of that of neighboring countries like China and Korea. The modern warehouse industry, therefore, enjoys favorable tailwinds, driven by outsized opportunities in manufacturing, increasing domestic consumption, the rapid growth of e-commerce, and trade activities that are outpacing regional peers. With Vietnam’s e-commerce market expected to grow over 20 % CAGR (e-Conomy SEA 2023 report) through 2025 on the back of the fastest-growing middle-class population and high internet penetration of over 70% today, e-commerce-dedicated logistic space in Vietnam could potentially grow more than 2 million square meters in the near- to mid-term to meet future demand.”

Through the execution of a clear and consistent growth strategy since its establishment, BW has emerged as the largest for-rent logistics and industrial platform in Vietnam today, with over 8.5 million square meters of prime industrial land under control across 40 projects in 11 key industrial provinces across Vietnam. The latest project will add a total GFA of around 105,000 square meters to its portfolio, thereby expanding its current GFA to over 3 million square meters of properties completed or under construction and reinforcing its dominant market position in Vietnam.

In recent years, BW has embarked on a transformative journey to facilitate and empower businesses to establish themselves in Vietnam. The company is unwavering in its commitment to providing best-in-class solutions to customers while creating long-term value for stakeholders. As a responsible corporate entity, BW has been an active contributor to the socio-economic development of Vietnam, not only through providing exceptional industrial and logistics spaces, but also championing environmental sustainability.