Core5 Vietnam breaks ground on second industrial project in Quang Ninh

Indochina Kajima, a joint venture between Indochina Capital and Kajima Corporation (Japan), held the ground-breaking ceremony for the Core5 project in DEEP C Quang Ninh 2 in the Quang Yen Coastal Economic Zone on March 29.

Given its prime and strategic location, Core5 Quang Ninh offers convenient accessibility to its tenants. The site is only a two-hour drive to the Mong Cai International Border with China, 14km to the Lach Huyen International Deepwater Port, 20km to Cat Bi International Airport, and has direct accessibility to Hanoi via the Haiphong motorway.

The project provides ready-built factories for lease with a terraced design and workshop and warehouse areas ranging from around 2,800sq.m up to 18,200sq.m.

Each unit will be equipped with the Core5 Vietnam signature curved curtain-wall office, necessary utilities, a firefighting and protection system in the factory area, dry loading bays, and an ample parking area.

For the first time, Core5 Vietnam will offer two-storey factories, often preferred by electronics manufacturers. In addition, it will feature rooftop solar panels, outdoor areas with health and wellness elements, canteen areas, and as the standard for all projects, water and energy-efficient systems following LEED Certified green building design.

Keisuke Koshijima, representative director and executive vice president of Kajima Corporation said, "Quang Ninh is a core growth engine in the Northern Key Economic Region as Vietnam's only province with both land and sea borders with China. This province shows great potential for cross-border trade, sea trade, and commercial services, and will serve as a major regional intermodal hub for the processing, manufacturing, and logistics sectors."

He said that Quang Ninh also stood out as a promising destination for foreign direct investment (FDI) thanks to its improved investment environment, proven by its top ranking in the Provincial Competitiveness Index for five consecutive years (2017-2021). The province targets attracting over $1 billion worth of FDI in 2023.

"I highly appreciate the vision and commitment of the authorities, and I believe Core5 Quang Ninh will make a positive contribution to helping the province achieve the aforementioned goals," said Koshijima.

Peter Ryder, CEO of Indochina Capital said, "Core5 Quang Ninh will attract tenants looking for high-quality, sustainable, and flexible property solutions thanks to its strategic location, unique design, and unparalleled international-standard services."

"Given its favourable geographical proximity to China's manufacturing hubs and accessibility to modern highways and international deep seaports, the province has attracted large-scale manufacturers such as Jinko Solar, Boltun, Skoda, Stavian, and Foxconn, generating the necessary presence of top-tier suppliers for these companies."

"In addition, our expertise in luxury hospitality for over 20 years and our attention to unique architecture provide a signature look for Core5 Quang Ninh. This will contribute to improving the working environment and provide best-in-class, value-added services to ensure a smooth setup for our clients," added Ryder.

Savills Vietnam said that despite the decrease in FDI inflows this time, industrial zones and ready-built factories were still hot for foreign investors.

"Currently, finding out the supply of industrial land becomes difficult, when the occupancy rate is always high, which is always above 95 per cent, especially in some southern provinces such as Binh Duong or Dong Nai, or in the Northern provinces like Bac Giang and Hai Duong," said John Campbell, head of Industrial Services at Savills Vietnam.

"Meanwhile, the market's new supply is limited because of difficulties in site clearance, compensation costs and land prices in Vietnam have increased a lot recently, in addition to investment procedures, legal and regulatory requirements, so the project approval process takes a lot of time," added Campbell.

Besides ready-built factories, the expert saw plenty of promising land to develop more diversified industrial real estate products such as data centres, cold storage, and logistics.

On July 6, Indochina Kajima Development Company, a joint venture between Indochina Capital and Kajima Corporation, launched Core5 Vietnam – a Vietnam-based industrial real estate investment and development platform focused on the nationwide rollout of world-class factory and warehouse properties for lease throughout Vietnam’s key manufacturing and logistics markets.

Realising the promising land of industrial real estate, developer Indochina Kajima has set foot in the segment with the ambition of becoming one of the leading world-class multi-segment property names.

Core5 Vietnam aims to raise the bar within the country's industrial property market to welcome the new wave of foreign investment. Peter Ryder, CEO at Indochina Capital talked with VIR's Nguyen Huong about the expansion of Core5.