Vietnam continues to show growth potential despite global economic uncertainty. The International Monetary Fund foresees Vietnam’s GDP to grow by 5.8% to reach nearly US$470 billion ($634.6 billion) by the end of this year, making it the fifth-largest economy in Southeast Asia.

To ride on that growth, organisations are looking to enter or expand their footprint in Vietnam, but going at it alone can be challenging. Common hurdles include unfamiliarity with local laws, regulations and practices, restrictive financial regulations, language barriers, and finding the right place to house operation, shares Lim Han Qin, Director of Soilbuild Group Holdings Ltd.

In response, Soilbuild aims to deliver more comprehensive and localised support for its prospective tenants through the recently launched Soilbuild International in Vietnam. It combines its expertise in industrial real estate with its deep knowledge of the country to support its customers’ business growth.

“In Vietnam, there is an increasing demand for quality ready-built factories and warehouses aligned with global standards. Soilbuild International is committed to building upon the foundation that we have accrued over the years to develop quality industrial space catering to the diverse needs of local organisations and multinational corporations,” says Lim.

He continues: “Additionally, our local team has extensive experience in Vietnam’s industrial real estate sector so they have a deep understanding of the local industrial market, regulations, business requirements, and more. They also possess a wide network of partners that can help customers further grow their business.”

Functional and sustainable ready-built factories

Regardless of company size, organisations can turn to Soilbuild International as their integrated growth partner in Vietnam. Lim explains: “As an integrated growth partner, we bring international sustainability standards, professional management expertise, functional design and customer-centricity to ultimately deliver quality, functional and timely real estate solutions to customers.”

Spectrum — Soilbuild’s approach to ready-built factories in Vietnam — is key to delivering that promise. The notable features of Spectrum factories include a clear height of 12m or more, a single-row column only that spans 36m, reinforced concrete columns, a column-to-column distance of between 10.5m and 12m, and a loop circuit for operational reliability.

Spectrum’s ready-built factories are also designed with sustainability in mind. They will be developed in accordance with LEED (Leadership in Energy and Environmental Design) Green Building Standards, which emphasises energy efficiency, environmental responsibility and sustainable design. Additionally, Soilbuild International is partnering sustainability consultancy firm GreenA Consultants to co-develop a sustainability framework for Soilbuild’s industrial developments in Vietnam.

“Through the years, we have been pushing the boundary of our sustainability journey to not only reduce the overall energy consumption and emissions, but also secure a more sustainable future and resilient urban landscape for future generations. We are committed to promoting green development in Vietnam,” affirms Lim.

Spectrum Nghệ An

The first Spectrum project will take place within the WHA Industrial Zone 2 Nghệ An. Called Spectrum Nghệ An, it will feature ready-built factories ranging from 3,200 sq m (34,444 sq ft) to 14,000 sq m (150,694 sq ft) over an area of 15.6ha. Construction is scheduled to commence in June 2024, with phase 1 expected to be completed by the first quarter of next year.

According to Ben Ding, general director of Soilbuild International (Vietnam), the Spectrum Nghệ An project will offer the following benefits to organisations:

• Asset-light and hassle-free solutions that optimise costs and allow businesses to fully focus on operations.
• Flexibility in space design that caters to specific needs.
• Future-proof facilities with sustainable and green features.
• Located in one of Vietnam’s economic zones, offering tax incentives. Also in close proximity to large manufacturers like Foxconn, Luxshare-ICT and Goertek.
• A large workforce to tap into as the province has approximately 1.6 million workers and a good educational and training system.
• Access to Soilbuild’s strong knowledge of the local market coupled with international standards and almost 50 years of experience, as well as dedicated customer support at every stage of the project.

Businesses can also be assured that the project will be delivered on time with active project management and attention. “Soilbuild International will also extend its strong digitalisation and technology adoption from Singapore into Vietnam right from the design development, construction and operational stages. For example, we will adopt a common data environment for the project team, use technology for project monitoring, defects checking and security system, among others,” shares Ding.

Beyond Spectrum Nghệ An, Soilbuild International intends to embark on industrial development projects focusing on Vietnam’s four key economic regions: North, Central, South and Mekong. “We will focus on industrial as a core asset class for Soilbuild International in Vietnam — from ready-built factories to built-to-suit assets to larger scales industrial or business parks and hubs in the longer term. Residential development will also be included in our development strategy,” says Ding.