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Mapletree Investment Pte will break ground on northern Vietnam’s largest logistic centre next week to serve the rising demands of international manufacturers setting up bases in the region.
The $70 million centre will be located at the Vietnam-Singapore Township and Industrial Park (VSIP) in Bac Ninh province, about 18 kilometres northeast of Hanoi.
“This is a very important project that will satisfy the logistic demands for manufacturers not only in Bac Ninh province, but also in surrounding places,” said Huynh Quang Hai, chief executive officer of VSIP.
Mapletree received an investment certificate for developing this project last February. According to Mapletree, the 55 hectare logistics park will incorporate bonded and non-bonded built-to-suit and multi-tenanted warehouse facilities, as well as an inland container depot. When completed, it will accommodate about 280,000 square metres of modern logistics space.
It comes as many foreign investors like Canon, Panasonic, Samsung Electronics, Foxconn, Compal and Piaggio with manufacturing factories in northern Vietnam, are facing a shortage of logistic facilities.
“There are several logistic sites developed in Bac Ninh and neighbouring provinces, but all are small-scaled,” said Vu Duc Quyet, director of Bac Ninh Industrial Parks Management Authority.
As more manufacturers set up shops in the region, the existing logistic facilities would be overloaded, he said.
Korea’s Samsung Electronics, which built a $670 million mobile phone factory in Bac Ninh, recently asked for the government’s permission to build its own logistic site.
“Mapletree’s investment will fulfill the gap in infrastructure systems and improve investment climate in the northern region of Vietnam,” Quyet said.
Close to key national roads in the northern region like National Roads 1A, 18 and Hanoi-Haiphong expressway and also in close proximity to the border between Vietnam and China, the logistic centre will offer favourable conditions for import and export operations.
“Manufacturers can easily transport cargo from the logistic centre to the capital city, Noi Bai international airport and seaports in Haiphong City,” Quyet added.
This is Mapletree’s third project in Vietnam and the first in the northern region. The company developed a 68 hectare Mapletree Binh Duong Logistics Park and Mapletree Business City @ Binh Duong in southern Binh Duong province, about 30 kilometres from Ho Chi Minh City.