Daiwa House will develop rental warehouse near Ho Chi Minh City – It’ll be the company’s first multi-tenant-type logistics facility in Vietnam
Daiwa House to Start Work on Rental Warehouse outside Ho Chi Minh in Vietnam
Date: Sep 5, 2018
Source: Daiwa House Industry Co., Ltd.
Daiwa House Industry Co., Ltd. (hereinafter “the Company”) will start work on October 1, 2018, on “D Project Rental Warehouse – Loc An Binh Son” in the Loc An Binh Son Industrial Park in Long Thanh, Dong Nai Province, in the southern part of Vietnam. This will be the Company’s first multi-tenant-type logistics facility (*1) in Vietnam.
Construction of the first building in this project is called “D Project Rental Warehouse – Loc An Binh Son Phase I” (site area: approximately 66,000 square meters, rental area: approximately 32,000 square meters).
Image of Appearance of “D Project Rental Warehouse – Loc An Binh Son Phase I”
The Company established the Long Duc Industrial Park (total site area: 270 ha) jointly with Sojitz Corporation and Kobelco Eco-Solutions Co., Ltd. in Long Thanh, Dong Nai Province, in the southern part of Vietnam in August 2011, and proceeded with attracting companies and building factories, for which it gained a favorable reputation.
Against this backdrop, to meet the increasingly diversifying needs for logistics facilities in Vietnam the Company decided to develop a new multi-tenant-type logistics facility in Loc An Binh Son Industrial Park – located approximately 15 km to the south of the Long Duc Industrial Park and approximately 40 km to the east of the center of Ho Chi Minh. On June 14, 2018 the Company entered into a rental agreement (until 2060) for land with a site area of approximately 132,600 m2*2 in this Industrial Park with VRG Long Thanh Development and Investment Joint Stock Company. The multi-tenant-type logistics facility (“D Project Rental Warehouse – Loc An Binh Son.”) will have a total rental area of approximately 62,000 m2 (planned).
Daiwa House Vietnam Co., Ltd. will take charge in the design and construction of this facility.
*1: A logistics facility that can accommodate multiple customers.
*2: Approximately three times the size of Tokyo Dome.
- Development of a logistics facility in a location with easy access to air and sea transportation
- Development of a multi-tenant-type logistics facility that can meet diversifying needs
Background to Development
Vietnam has a population of approximately 93.7 million people, a GDP growth rate of 6.81% (2017) *3 and a young workforce with those under the age of 40 accounting for 65%*4 of the population.
Traditionally dominated by local companies, in recent years the Vietnamese logistics property market has seen increasing demand partly due to the increase in presence of Japanese companies in the country.
The number of Japanese companies with in Vietnam has approximately doubled in 10 years from 948 firms in 2007 to 1,816 firms in 2017.*5 Accordingly, to meet the diversifying needs for logistics facilities by Japanese companies in Vietnam, we have decided to start work on the development of a multi-tenant-type logistics facility by taking advantage of our expertise in logistics facility development in Japan.
*3: General Statistics Office of Vietnam 2017.
*4: United Nations, Department of Economic and Social Affairs, Population Division (2017)
*5: Annual Report of Statistics on Japanese Nationals Overseas by the Consular Policy Division in the Consular Affairs Bureau of the Ministry of Foreign Affairs of Japan.
1. Development of a Logistics Facility in a Location with Easy Access to Sea and Air Transportation
This area is located approximately 8 km (approximately 14 minutes by car) from Long Thanh Interchange (east-west highway) and approximately 40 km (approximately 40 minutes by car) to the east of Ho Chi Minh. It is located approximately 30 km (approximately 30 minutes by car) to Cat Lai Port, the main port in the southern part of Vietnam, and approximately 40 km (approximately 40 minutes by car) to Cai Mep Thi Vai Port, where it is possible to berth large ships. This makes it ideal as a manufacturing base and logistics base. In addition, the facility is only approximately 3 km (distance in a straight line) to the Long Thanh International Airport (scheduled to open in 2025). This is a highly advantageous location with easy access to both sea and air transportation.
2. Multi-tenant-type Logistics Facility That Can Meet Diversifying Needs
The “D Project Rental Warehouse – Loc An Binh Son” project consists of Phase I and Phase II (total site area: 132,600 m2, total rental area: 62,000 m2 (planned)). It will be a multi-tenant-type logistics facility that can meet diverse needs. It will accommodate up to 12 tenants (from approximately 5,000 m2 per tenant). It is assumed that target tenants will be both local and foreign logistics companies in Vietnam.