Asia’s biggest warehouse operator GLP and Ho Chi Minh City-based startup SEA Logistic Partners (SLP) have announced a USD 1.5 billion joint venture to develop modern logistic real estate assets in Vietnam. The joint venture will initially focus on the country’s two largest markets, including Greater Hanoi and Ho Chi Minh City. This marks the first expansion in South East Asia by GLP, which has 64 million square meters of logistics real estate in over 16 countries, including Brazil, China, India, Japan, the US, and Europe.
Vietnam’s successful COVID-19 containment has allowed factories to keep running and drawn much attention from investors. Even before the COVID-19 pandemic, the country already saw increased interests from international manufacturers looking to diversify supply chains away from China.
In response to the surging demand for storage and transport services in Vietnam, the joint venture between GLP and SLP aims to build three logistics hubs by the first quarter of 2022, with 210,000 square meters of net leasable area upon completion.
The venture is leveraging GLP’s expertise and a global network of customers and has received a pre-leased commitment from JUSDA, the former logistics unit of the Foxconn group.
(Sources: Reuters; Vietnam Investment Review; Nhip Cau Dau Tu Magazine)