Boustead welcoming greener investors into its facilities
Boustead welcoming greener investors into its facilities
Along with innovation and general progress over each development period, the requirements placed on industrial factories are becoming more difficult in terms of matching demand on manufacturing, logistics, and warehousing. Tran Quoc Trung, general director of Boustead Projects Land (Vietnam), told VIR’s Nguyen Huong about factory-based developments.
How do you assess the evolution of high-standard and high-tech factories on a global scale right now?
Tran Quoc Trung, general director of Boustead Projects Land (Vietnam)
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These are two trends for the factory at present, which depend on requirements of investors – like the flatness and thickness of the floor, air quality, water, and forming various standards applied for a variety of clients. Meanwhile high-tech and sustainable buildings provide solutions for smart buildings with less power consumption, usually creating a better and more modern working environment and contributing to reducing climate change.
In Singapore, Boustead has developed many high-quality and high-tech buildings. Two buildings in particular are the research and development centre of GSK Group, which applies many smart solutions like temperature adjustments for rooms, areas, or even the whole building. Alice, meanwhile, is the first privately-developed, green, smart, and multi-tenanted business park and office space in the city-state’s Mediapolis, which has already received a green mark award by the Singaporean Building and Construction Authority.
What is the potential of industrial property in Vietnam alongside Boustead’s high-standard factories?
The potential of industrial property is huge with the arrival of some new big players and funds like GLP, Logos, and Warburg Pincus, with large investments ranging from $600 million to billions of US dollars. In addition, there are also long-term developers including Deep C, Amata, and Vietnam-Singapore Industrial Park. This property segment is developing well thanks to external factors like the US-China trade war and supply chain diversification.
Reaching for higher quality is surely the trend of industrial factories in the time coming and also the target of Boustead. However, we are trying to balance the factory’s standards and rental price to provide the best products at an affordable price to investors, which here in Vietnam are in the middle and low positions, rarely at the top of supply chains, so their requirements and budget are not too high.
Boustead is interested in resolving the most urgent needs of customers, like anti-leakage processes, using high-quality materials for roofing, and logistics requirements.
For example, for processing-exporting enterprises with some demands on container access, the road leading to their factory needs to be built in a way that makes it easy for trucks to park and U-turn, along with some covers and bridges for more convenience.
These and more are advantages of Boustead’s industrial factories in the southern province of Dong Nai’s Nhon Trach 2 Industrial Zone, and so believe that our factories are outstanding compared to the others on the market.
Entering Vietnam a few years ago, Nhon Trach 2 is the first and only project of Boustead here. Our parent company in Singapore sees the potential of the Vietnamese market, but still maintains discretion.
Our assessment on the market has improved much compared to 2017. We see the restructure of supply chains, and relocation of investors, as well as the expansion of other industrial developers. So we are continuing to develop Nhon Trach 2, as well as looking for new land and new projects. Although industrial property in Vietnam has developed for 25 years, it is still somewhat in the beginning stages. Developing industrial property is a long-term thing, and so there are still good chances to seize and expand.
Boustead welcoming greener investors into its facilities-illustration photo
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How are investors targeted for Boustead’s factory?
If compared to similar developers specialising in ready-built factories and warehouses, we believe that Boustead’s products are leading in terms of quality. We have poured a lot of money into perfecting some meticulous details, and selecting reputable contractors and professional supervision consultants to ensure that the best products will be released to the market and meet all the needs and standards of Boustead’s renters.
Administrative procedures are quite complicated in Vietnam. So in addition to high-quality factories we also pay attention to supporting services related to certificates, connecting renters and authorities to easily implement administrative procedures. Boustead works with investors to overcome all business issues in human resources, administration, accounting, and setting up factories.
We welcome all investors to set up and operate at our factories, especially those from a light and clean industry because environmentally-friendly actions are top of our concerns. As a result, we will not partner with any business that does not align with that mindset.
