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FOREIGN DEVELOPERS ACCOUNT FOR THREE-QUARTERS OF VIETNAM'S WAREHOUSING
Foreign developers dominate the modern warehouse market in Vietnam, accounting for over 75 per cent of the market share by net leasable area (NLA) in 2023.
According to an industry report by FiinGroup, warehousing remains one of the most promising logistics segments in Vietnam, attracting investments from both local and foreign investors.
The top 3 foreign-owned players, Mapletree, BW Industrial, and SLP, account for 46 per cent of the market’s total NLA, contributing nearly 1.8 million square metres of NLA.
Mapletree is in the lead with 922,000 sq.m. The Singapore company has been aggressively expanding its warehouse portfolio in Vietnam, with mega logistic hubs in Bac Ninh, Hung Yen, and Binh Duong provinces. Another warehouse project with 198,000 sq.m of NLA in Bac Ninh is slated to be completed by 2025.
BW Industrial and NPL Logistics are two rising stars in the modern warehouse market in Vietnam, with 22 new warehouses in both ends of the country by 2022. By 2026, BW Industrial will put into operation a 243,000 sq.m warehouse in Dong Nai.
Local players are active in the warehouse industry, including ICD ST, NPL Logistics, and Gemadept, and account for 25 per cent of the market share.
While foreign players have the advantages of extensive industry knowledge and financial strength to grow, local players boast extensive ecosystems in logistics, port, and shipping operations to offer comprehensive services to clients.
Modern warehouse supply witnessed a double-digit compound annual growth rate of 23 per cent in the 2020-2023 period.
There are some key growth drivers, including the national master plans aimed at expanding industrial park land to allure investments from regions such as Long An, Dong Nai, Bac Giang, and others. Rapid e-commerce growth is fostering an escalating demand for storage systems that seamlessly integrate existing functionalities with critical logistics components, FiinGroup said.
These components encompass transportation, inventory management, cold storage, and warehouse management. On top of that, the ongoing restructuring of global supply chains, characterised by the decentralisation of manufacturing away from China, stands to be advantageous for Vietnam's modern warehouse market.
Both local and foreign investors are now aggressively developing logistics infrastructures, especially modern warehouses in Vietnam, to incentivise the rising demand of manufacturing giants, modern trade retail chain, logistics companies as well as solid trade activities.
Source: VIR
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