The project, Viettel Hung Yen logistics center, will be developed on a 13.9-hectare site at Minh Duc Industrial Park, according to a resolution recently approved by the company’s board of directors.

The total investment will cover land-use rights leasing costs, construction, equipment, project management, consulting fees, contingencies, and value-added tax.

Viettel Post (HoSE: VTP) plans to finance the project through a combination of internal resources and borrowings, with each source accounting for 50% of total capital.

The company expects project approvals to be completed in the second quarter of 2026.

Construction will be carried out in two phases, with the first phase scheduled from Q2/2026 through Q1/2027 and the second phase running in Q2-Q4/2027. Final settlement and completion procedures are expected to continue through the Q3/2028.

The project forms part of Viettel Post’s broader logistics expansion strategy for the 2025-2030 period. According to the company, the facility is expected to generate approximately VND1.99 trillion ($75.6 million) in revenue and serve as a satellite logistics hub supporting industrial parks located within a 15-kilometer radius.

The hub will incorporate advanced automation and digital technologies, aligning with the company’s strategy to develop technology-enabled logistics infrastructure and strengthen support for import-export activities and domestic distribution networks.

The investment comes as Vietnam’s logistics sector continues to benefit from expanding manufacturing activity, rising e-commerce demand, and growing foreign direct investment.

The current Hung Yen province, about 55 km from the center of Hanoi, was formed following the merger of Hung Yen and Thai Binh province last July. The merger has consolidated Hung Yen’s position as one of the major industrial hubs in northern Vietnam.

Hung Yen has set a target of becoming a centrally-governed city by 2030, with development centered on a multi-nodal urban-rural network integrated with the Red River landscape, heritage routes, and stronger connectivity with Hanoi. Vietnam currently has seven centrally-governed cities, namely Hanoi, Hai Phong, Danang, Hue, Ho Chi Minh City, Can Tho, and Dong Nai.

As of end-May, Hung Yen, home to the $1.5 billion Trump International Hung Yen project, had 984 valid foreign-invested projects totaling $17.55 billion, according to the provincial authorities. Since the beginning of this year, the province has lured 19 newly-registered FDI projects worth $227 million.