SEA Logistic Partners (SLP), an industrial and logistics facility developer backed by warehouse giant GLP, has commenced construction of a nine-hectare warehouse, its second in Bac Ninh province, an emerging manufacturing hub in northern Vietnam.
SLP Park Nam Son Hap Linh, the new facility, lies in Nam Son Hap Linh Industrial Park of Bac Ninh town. The company’s first project of this type in the province is SLP Park Yen Phong, located in Yen Phong Park of Yen Phong district.
The project, with a total leasable area of more than 90,000 square meters, would be completed in the second quarter of 2023, featuring modern-standard, Grade A warehouses.
"SLP has developed six logistics facilities with a total land area of about 860,000 square meters, focusing primarily on two of Vietnam's largest markets, Greater Hanoi and Greater Ho Chi Minh City," SLP founder and managing partner Jenkin Chiang said at the groundbreaking ceremony Thursday.
"Bac Ninh is one of the most impressive provinces in terms of advantages and potential for attracting investment in industrial development due to its open business environment, convenient trade location, and complete infrastructure. SLP intends to promptly meet increasingly diverse warehouse facility demand, taking advantage of Vietnam's growing logistics sector," he added.
SLP Park Nam Son Hap Linh is near successful investment-attracted industrial parks like Que Vo, Tien Son, and VSIP Bac Ninh. The location provides easy access to Hanoi, Noi Bai International Airport, Hai Phong Port in Hai Phong city, Cai Lan Port in Quang Ninh province, and Huu Nghi border gate in Lang Son province.
In October 2020, SLP and GLP set up a new joint venture to invest in and develop modern logistics real estate in Vietnam. Since entering the nation through the joint venture, SLP has acquired six development sites - the above-mentioned two in Bac Ninh; SLP Park Bac Giang in Bac Giang province nearby; SLP Park Hai Phong in Hai Phong; and SLP Park Long Hau and SLP Park Xuyen A in Long An province near HCMC.
GLP in late January launched GLP Vietnam Development Partners I, its first logistics development fund in Vietnam with $1.1 billion in capital. The giant said investors in the new fund included Dutch pension fund manager APG Asset Management and Manulife, Canada-based global financial services provider.
JLL Vietnam told a press conference last December that e-commerce was serving as a driving force for logistics real estate demand in Vietnam. The realty service firm predicted warehouse demand in the nation would grow three times faster than the rate of e-commerce growth, resulting in an increased need for efficient large-scale warehousing solutions like the Alibaba-backed Cainiao PAT Logistics Park in Long An.