Core5 to set up one-stop factory and warehouse solutions
Core5 to set up one-stop factory and warehouse solutions
Core5 Vietnam aims to raise the bar within the country's industrial property market to welcome the new wave of foreign investment. Peter Ryder, CEO at Indochina Capital talked with VIR's Nguyen Huong about the expansion of Core5.
In Vietnam, who are the potential clients of Core5 Haiphong and what will the company do to attract clients?
Core5 Vietnam and Core5 Haiphong welcome companies from different sectors including automotive, electronics, engineering, packaging, consumer, logistics, and so on to enjoy a prime location, take part in green initiatives, and become a member of an active and modern community.
We understand our relationship with tenants, clients, and partners, and that they are doing much more than simply leasing space. It's a partnership, and we plan to draw on Indochina Kajima's experience in the hospitality sector to offer unparalleled services to our clients.
Given that the local licensing framework often presents unfamiliar territory, we will offer our partners a full range of one-stop solutions to ensure the efficient and smooth set-up of our partners' business activities. This is all done with the objective of establishing long-term and meaningful relationships with our clients
In our vision, we will build manufacturing hubs which promote environmental sustainability and community health, thus making it easier for our tenants to attract and retain high-quality human resources and further cementing Core5 Vietnam's brand identity.
With experience in developing high-class resorts in Vietnam, why did you decide to invest in industrial real estate?
Indochina Capital has been operating in Vietnam for over two decades during which we have developed iconic and pioneering projects across Vietnam, such as Four Seasons Nam Hai, Six Senses Con Dao, Hyatt Regency Danang, Indochina Plaza Hanoi, and with Kajima the Wink Hotels brand.
Indochina Capital and Kajima Corporation established Indochina Kajima Development Company in 2016. Since then, we have focused on the rollout of Wink Hotels. We also saw an opportunity to develop a nationwide ready-built warehouse and factory industrial platform.
In our vision, we will build manufacturing hubs which promote environmental sustainability and community health, thus making it easier for our tenants to attract and retain high-quality human resources and further cementing Core5 Vietnam's brand identity.
This strategy is backed by strong market fundamentals as manufacturing is quickly becoming the backbone of Vietnam's rapidly growing economy.
In the first half of 2022, the manufacturing and processing segment accounted for 63 per cent of Vietnam's foreign investment. In addition, the outlook for the logistics sector is compelling as e-commerce is expected to grow at over 20 per cent annually for the next five years.
Given this attractive market opportunity, we decided to launch Core5 Vietnam, a Vietnam-based industrial real estate investment and development platform focused on the nationwide rollout of world-class factory and warehouse properties for lease throughout Vietnam's key manufacturing and logistics markets.
Could you share the rollout plan of Core5 Vietnam?
Core5 Haiphong's first factories and warehouses will be available to clients by the early second quarter of 2023. Our next steps will be the groundbreaking of projects in Hung Yen and Quang Ninh will occur in the first quarter of 2023 and the second quarter of 2023, respectively. Both of these projects will add an approximate 127,000 square metres of net leasable area of ready-built factory and warehouse to the market. Multiple additional projects will commence in later 2023 and further on.
