Sembcorp Industries, a Singaporean-invested firm, will build the first modern ready-built warehouse in central Vietnam next month to meet the increasing demand in the industrial real estate market.

Sembcorp is set to break ground at the Sembcorp Logistics Park Quang Ngai on December 2, 2022.

Located at Vietnam Singapore Industrial Park in Quang Ngai province (VSIP Quang Ngai), Sembcorp Logistics Park is the first ready-built warehouse to provide modern warehousing spaces as well as enabling operational efficiency and supply chain resiliency to businesses.

The project showcases three blocks of modern single-storey warehouses with a total land area of six hectares and a gross floor area of 35,500 square metres which is expected to be completed by the fourth quarter of 2023.

"Sembcorp's latest logistics property is developed in Quang Ngai, a strategic gateway located within Dung Quat Economic Zone, presenting an attractive value proposition for manufacturers and third-party logistics companies to diversify their operations and build resilience into their supply chains," Charles Chong, country head of Sembcorp Development in Vietnam told a press conference in Hanoi on November 24.

"Central Vietnam offers significant untapped investment potential. It takes advantage of the East-West Economic Corridor, which links important commercial nodes in each member country."

Sembcorp Logistics Park Quang Ngai is within close range of logistics hubs, such as Chu Lai and Dung Quat seaports, Chu Lai and Da Nang airports, and Da Nang-Quang Ngai expressway, providing businesses with seamless connectivity for moving goods.

With this industrial property project, companies can save long-term operating costs, consume less energy, reduce their carbon footprint, create favourable working environment, and help alleviate the environmental concerns of neighbouring communities.

Chong said: "With Sembcorp Logistics Park Quang Ngai, we hope to bring modern and sustainable solutions to businesses, thus can foster operation efficiency and contribute to Vietnam's pathways to sustainability."

At this press conference, Do Thi Thu Hang, Senior Director, Research and Consultancy at Savills Hanoi, said Vietnam's industrial real estate market has not only attracted domestic investors, but also foreign investors. Next year, the industrial market will continue strong development. Investors will develop real estate along with residential real estate.

"This year, Vietnam has many favourable conditions to restore the development of the property market, especially industrial real estate such as industrial parks, warehouses and ready-built factories," Hang added.

Borders reopened in March, and travel stimulation policies supported an increase in the number signed memorandum of understandings (MOUs), lease contracts and completed investment procedures, she said.

Sembcorp began its investment to Vietnam with the establishment of its first Vietnam Singapore Industrial Park (VSIP) in 1996. Since then, 12 VSIPs have been established nationwide, generating 17.6 billion USD of investments from about 850 international manufacturers and enterprises. Its VSIP projects are modeled after smart and sustainable industrial parks, while its industrial and residential properties are transitioning green buildings.

In 2021, Sembcorp Logistics Park Hai Duong was the first warehousing project in Vietnam to register for Lotus green certificate - a green building rating system developed by the Vietnam Green Building Council./.