Supply chain diversification is an opportunity for Vietnam's industrial real estate

That is what Mr. Edwin Chee, Operations Director of SLP Vietnam, shared with Investment Newspaper reporters at the Vietnam Industrial Real Estate Forum (VIPF) 2024.

SLP, a subsidiary of GLP Group, is increasingly increasing its influence on Vietnam's industrial and logistics infrastructure, along with strong investments in modern warehouse and factory systems. Mr. Edwin Chee, Managing Director of SLP Vietnam, had a talk with Dau Tu Newspaper. on the sidelines of the Vietnam Industrial Real Estate Forum (VIPF) 2024 with the theme "Greening to welcome new investment waves" about emerging trends in the Vietnamese market and the company's strategies to exploit development potential.

After establishing the $1 billion Vietnam Logistics Development Fund in 2022, how has SLP allocated this fund to expand operations in the Vietnamese market?

Since the establishment of the Vietnam Logistics Development Fund, SLP has had a strategy of allocating investment to key infrastructure projects across Vietnam. We have invested in developing modern industrial and logistics infrastructure in strategic locations such as Bac Ninh , Hai Phong, Long An, Vinh Long, and soon in Hung Yen and Dong Nai.

These investments have enabled us to build a modern warehouse and factory system, which plays an important role in enhancing the competitiveness of Vietnam's manufacturing and logistics industry, contributing to attracting global investors. In addition, we also spend a significant portion of the Fund on applying advanced technologies and features to optimize SLP's operations as well as improve tenant satisfaction.

Could you please share the opportunities and competition in Vietnam's industrial real estate market in the context of restructuring the global supply chain?

Vietnam’s industrial real estate market holds many opportunities as businesses continue to diversify their supply chains. Its strategic location, favorable trade agreements, and competitive labor costs have made Vietnam an attractive investment destination. However, this has also increased competition among industrial real estate developers.

To stand out, SLP leverages its extensive industry knowledge, global experience, know-how and financial strength to provide customized solutions to tenants' requirements, contributing to attracting and retaining high-quality customers.

Vietnam is trying to attract high-quality FDI, especially in the semiconductor, electronics and electric vehicle sectors. What recommendations do you have for Vietnam to improve its industrial real estate policies to attract these investors?

To attract foreign investment into high-tech sectors such as semiconductors, electronics, and electric vehicles, Vietnam needs to build specialized industrial parks and high-tech zones. To achieve this goal, Vietnam needs to provide attractive incentives, simplify administrative procedures, and ensure strong infrastructure support.

In addition, Vietnam also needs to implement targetededucation and training programs to build a skilled workforce. SLP is committed to supporting these initiatives by developing projects that meet the specific needs of high-tech industries.

Mr. Edwin Chee, Operations Director of SLP Vietnam

Industrial real estate developers have been increasing merger and acquisition (M&A) activities. How is SLP implementing its M&A strategy to increase its presence in Vietnam?

SLP’s M&A strategy focuses on acquiring high-quality, well-located assets that align with the company’s growth objectives. By integrating these assets into its existing portfolio, SLP can leverage its operational and development expertise to bring high-quality products to market. We also promote partnerships with reputable developers to accelerate our expansion plans.

Overall, the Vietnamese industrial real estate M&A market promises many new opportunities in 2024. As the market matures, we expect the consolidation trend to continue in the market, with developers looking to enhance their portfolios through strategic acquisitions. M&A activity is forecast to increase amid competition and growing demand for modern, efficient industrial and logistics facilities.

SLP is well-positioned to capture these opportunities with strong financial backing and market expertise.

Many industrial real estate developers have increased the application of AI, automation and robotics to reduce operating costs. Do you see this trend being welcomed by industrial real estate developers in Vietnam?

Yes, technology adoption is gaining traction among industrial real estate developers in Vietnam, albeit at a slower pace than in mature markets. The main barriers are the lack of infrastructure, technical know-how, and the necessary skills.

However, we also noted some notable bright spots. At SLP, we are always looking for opportunities to integrate technology effectively. Specifically, SLP has been implementing smart gateways in a number of projects. This is not only for security reasons, but also to help exploit data to ensure more efficient, cost-effective and sustainable operations. These smart gateways are an important part of the digital transformation that is revolutionizing the management of industrial real estate facilities.

Source: https://baodautu.vn/da-dang-hoa-chuoi-cung-ung-la-co-hoi-cua-bat-dong-san-cong-nghiep-viet-nam-d221280.html