Ready-built logistics gain momentum
Ready-built logistics gain momentum
Foreign investors are showing growing interest in Vietnam’s logistics sector by developing new facilities to tap into rising demand.
Manufacturers are expanding into Vietnam to complement existing logistics operations, Photo: Shutterstock |
In early March, Sembcorp Infra Services, a subsidiary of Sembcorp Development, broke ground on its logistics park in Dinh Vu in the northern port city of Haiphong to support manufacturing demand, growing domestic consumption and e-commerce in the country. It is Sembcorp’s fifth modern ready-built warehouse and factory (RBWF) facility in Haiphong.
Sembcorp Logistics Park Dinh Vu boasts six single-storey blocks and 21 units in total. It will have a total gross floor area of over 90,000 square metres, with the first phase to be completed in the next quarter, and the remaining 80,000sq.m to be completed in 2026.
The project caters to companies large and small in industries like electronics, automotives, and high-tech manufacturing. The RBWFs will offer a quick, cost-effective, asset-light market entry, Sembcorp leaders said.
These facilities will also support the full integration of warehousing and logistics, with features like higher floor loading and clear height, benefiting enterprises and e-commerce players. Meanwhile, bonded warehouses can help export processing enterprises reduce costs, streamline customs, optimise inventory, and improve fulfilment speed, boosting competitiveness.
James Ng, director of Sembcorp Infra Services Dinh Vu, told VIR, “Vietnam’s favourable business environment and infrastructure improvements are driving the country’s status as a key production hub in Southeast Asia. Strategic initiatives to bolster the industrial and e-commerce sectors are driving demand for RBWFs through 2030. These are backed by strong exports and domestic consumption. These trends present opportunities for Sembcorp to serve our tenants by providing high-quality, modern warehouses and factories.”
In late February, South Korea’s Jeil Group also started construction on the Jeil Logistics 1 project in Nam Dinh Vu Industrial Park (IP), Haiphong with an investment capital of $44.5 million. The logistics centre will feature ambient and refrigerated storage facilities, and will also offer container warehouse services and ready-built complexes. Construction is scheduled to be completed in February 2026.
Lim Sang Hoon, director of Jeil Logistics 1 Co., Ltd. said, “Since the beginning, our goal is to find a strategic and convenient location for building warehousing facilities near seaports. Among many options, Nam Dinh Vu IP in Dinh Vu-Cat Hai Economic Zone is the optimal option for us. There are many key factors contributing to this decision, including attractive tax incentives and strong support from local authorities.”
Japan’s Mitsubishi Estate Co., Ltd. is developing two large-scale logistics facilities, Logicross Nam Thuan in Long An province and Logicross Haiphong, to respond to the growing logistic needs of Vietnam. Construction of Logicross Nam Thuan commenced in October 2024 and is expected to be completed in June, while Logicross Haiphong began construction in November 2024 and will be ready this August. The total cost for both projects is estimated at $90 million.
Dan Martin, international business advisor at Dezan Shira & Associates in Hanoi, said that Vietnam’s logistics sector is expanding rapidly, fuelled by manufacturing diversification, surging e-commerce, and an aggressive infrastructure push. Foreign investors were taking note, with many new logistics and warehouse projects concentrated in industrial hubs such as Dong Nai, Bac Ninh, and Haiphong, as well as strategic sites in and around Hanoi and Ho Chi Minh City.
“Investment opportunities in logistics infrastructure remain strong despite global economic uncertainties. Manufacturers are not simply relocating from China but expanding into Vietnam to complement existing operations. This shift is fuelling demand for cold storage, fulfilment centres, and IPs tailored to high-tech manufacturing and cross-border connectivity,” Martin said.
Foreign investment in Vietnam’s logistics sector is expected to remain robust, Martin added, and the government actively encourages international participation, offering tax incentives and land lease exemptions for priority infrastructure projects.
“Public-private partnerships have become an important funding mechanism, enabling global firms to invest in expressways, terminals, and integrated logistics facilities. While Japan, South Korea, and Singapore remain leading investors, western firms are also increasing their presence in toll roads and port infrastructure,” Martin said.
- 14:37 21/03/2025
