BW Industrial Development JSC, a leading logistics and industrial real estate developer in Vietnam, kicked off the construction of a project in Hai Phong city on Thursday.
The project, a joint effort of BW and Hong Kong-based real asset manager ESR Group Limited, covers 7.2 hectares in Nam Dinh Vu Industrial Park of the northern city, BW said in a Friday release.
The project, one of three development joint ventures between BW and ESR, is scheduled for completion in July 2024 and will mark BW’s 10th new project launched this year. It cements BW’s leading position in the market while expanding ESR’s Asia-Pacific footprint in the high-growth Southeast Asia region.
Ho Chi Minh City-headquartered BW, a joint venture between American private equity giant Warburg Pincus and Vietnamese leading industrial developer Becamex, currently has several facilities under development in Hanoi and HCMC.
Nam Dinh Vu Industrial Park, located in the Dinh Vu-Cat Hai Economic Zone, is a prime location for foreign direct investment in industries such as automotive, electronics, renewables, electrical equipment, and machinery, BW highlighted. Dinh Vu-Cat Hai Economic Zone offers attractive tax incentives to manufacturers, including a four-year exemption and nine-year 50%-reduction of corporate income tax (CIT).
“The demand for ready-built factories in Hai Phong is on the rise because of its geographic proximity to China with direct road connections to China’s South electronics supply chain cluster; it takes less than one day to truck goods from Hai Phong to Shenzhen. Thus, as part of their China Plus One strategy, it is attractive for companies to locate in Nam Dinh Vu,” said Lance Li, CEO of BW.