Frasers Property, Vietnam’s Gelex begin work on northern Vietnam industrial park

Frasers Property Vietnam (FPV), under Singapore-headquartered Frasers Property, and Vietnam Electrical Equipment JSC (Gelex) have begun constructing an industrial park in the northern province of Bac Ninh.

The 34,500 sqm high-quality industrial and logistics real estate, called Yen Phong 2C Industrial Park, is the first project being implemented after the two sides signed a partnership agreement in March, they said Thursday. Per the agreement, they will invest $250 million in building “premium concept” industrial parks in Vietnam’s northern region.

The Yen Phong 2C IP, featuring high-quality industrial and logistics space designed in accordance with Frasers Property's Premium Estates concept, is scheduled to be completed in the second quarter of 2024.

It will integrate 7,000 square meters for a green recreation park and on-site service centre to support occupier well-being in the estate.

Frasers Property’s commercial developments in Vietnam are green-certified or in the process of pursuing certification. Its Eco Logistics Centre in the southern province of Binh Duong, a ready-built warehouse development managed by FPV, has recently obtained LEED certification. The Binh Duong Industrial Park, Frasers Property’s first industrial development in Vietnam, is also on track to receive LEED certification.

LEED or Leadership in Energy and Environmental Design is the world's most widely used green building rating system.

"Industrial Center YP2C will exceed expectations of our customers, serving as the cornerstone of Vietnam’s premier green and sustainable industrial park,” said GELEX Group Nguyen Trong Hien, chairman of Gelex Group.

The premium ready-built-factory and ready-built hybrid spaces will be versatile and well-positioned to cater to the unique requirements of customers, which "supports the country’s industrial transformation and attractiveness as a key investment destination,” said Lim Hua Tiong, CEO of Frasers Property Vietnam.

Bac Ninh attracted $1.26 billion in foreign direct investment from 222 projects in the year to August 20, down 30.7% year-on-year in value, according to provincial data.

The province, also an industrial hub in northern Vietnam and home to two Samsung factories, saw its index of industrial production (IIP) go down 15.75% year-on-year in August, despite a month-on-month growth of 8.24%.

In January-August, the province's IIP fell 16.77%, driven by a 15.91% decrease in production of electronic items, computers and optical devices; a drop of 33.94% in fashion products; and a drop of 28.37% in electrical items.