Becamex IDC, a leading developer of large-scale industrial townships in Vietnam, has decided to build a new industrial park in its home province of Binh Duong to capitalize on the growing demand for warehouses and manufacturing space.
The VND5,460 billion ($233 million) Cay Truong Industrial Park project will be located in Bau Bang district, about 60 kilometers north of Ho Chi Minh City, Vietnam’s largest economic hub, according to the major. About 85% of the investment will derive from loans.
Becamex has not disclosed the total area of the IP, just saying construction is set for 2022-2026.
In a related development, the Binh Duong-based industrial developer is preparing to set up Becamex-VSIP Electricity Investment and Development JSC to supply power to industrial parks across Vietnam.
VSIP is Vietnam-Singapore Industrial Park Joint Venture Ltd., a partnership between Becamex and Sembcorp Industries, one of Singapore’s biggest conglomerates. The VSIP platform represents a successful business partnership between Vietnam and Singapore, with the joint venture overseeing construction of VSIP III Industrial Park in Binh Duong.
VSIP III will be home to Danish giant toymaker Lego’s latest smart plant, which will cost more than $1 billion and cover 44 hectares.
Like the VSIP platform, the Vietnam joint venture between Becamex and global private equity giant Warburg Pincus, established in 2018 as BW Industrial Development JSC, is familiar across the domestic industrial property market.
Responding to Vietnam’s thirst for industrial real estate development, the American giant set up BW Industrial amid the transformative shift of the manufacturing base from markets like China to Vietnam.
Besides teaming up with Sembcorp, backed by Singaporean sovereign wealth fund Temasek, and Warburg Pincus, Becamex is also in international partnership with Tokyo-based major infrastructure builder Tokyu Corp.
The 35-65 Becamex Tokyu joint venture is the developer of New Binh Duong City, which includes the province’s administration hub, offices, townships, as well as residential, service, and shopping complexes.
Becamex Tokyu plans to build a railway line with funding from the Japanese government to link the new city with HCMC’s first metro route Ben Thanh-Suoi Tien, which is currently under construction.