On 19th August 2021, KCN Vietnam had the privilege to partner with JLL Vietnam and NS Bluescope to host a webinar about Vietnam’s industrial market: Resilience During Uncertainties. The virtual event included three presentations from an international real estate professional, a reputed construction supplier, and a sustainable industrial developer.
JLL Vietnam commenced the webinar with a comprehensive overview of the industrial market in APAC, with many positive long-term indicators and potential opportunities in Vietnam. Ms. Trang Bui, Head of Markets at JLL Vietnam, highlighted the increase of 6.8% y-o-y in Q2 2021, a slight drop from the previous quarter, but still indicating strong growth. Despite the brutal hit of the new COVID-19 wave, Vietnam’s economic growth is still on an upward trajectory. In addition, the Asia Pacific market indicators show significant potential for the logistics sector, with an estimated CAGR of 15% between 2020-2024. The APAC and domestic market growth enable sectors like e-commerce and logistics to continue expanding in the coming years.
During the KCN Vietnam presentation, Ms. Tran Huynh (COO) highlighted how the COVID-19 pandemic had caused significant uncertainties in the market, particularly with the rising cost of construction. Despite the severity of the situation, market indicators still support industrial market growth. However, construction cost is a significant issue for developers like KCN Vietnam. The steep price increase has led to delays in construction, increases in rental prices, and significant financial loss for stakeholders. As a prominent developer, KCN Vietnam and its peers must be flexible in balancing all the impacts. There is no standard formula for flexibility but planning and crisis management will help developers weather these uncertainties.
From a construction perspective, Mr. Tri (President of NS Bluescope) gave a holistic overview of the iron and steel market. He identified the up and down trends and the rationale behind the increase of construction materials. The COVID-19 pandemic has caused significant production disruption, leading to a lack of supply on the market. Furthermore, Mr. Tri highlighted China’s decrease in steel production, as China moves towards sustainability, caused shockwaves throughout the global steel market. China accounts for 50% of the global output. As a result, Bluescope has diversified its products, enabling consumers with more economic and strategic choices for construction materials.
Both KCN Vietnam and Bluescope highlighted the importance of sustainability as the core value of the brand. KCN Vietnam plans on installing solar panels across their projects and is looking into alternative green solutions for their tenants. Bluescope is applying the latest technology into their products to reduce energy consumption, intending to reach net-zero carbon emission by 2050 in their factories.
The webinar was an extreme success, with high audience engagement and many questions for the speakers. Two hundred ninety-seven people logged into the webinar, plus an additional 12,600 viewers on Bluescope’s Facebook live stream.
Lastly, we would like to express our deepest gratitude to the JLL Vietnam and Bluescope team for this excellent opportunity for KCN Vietnam to share our experiences and case studies. We hope that the information we brought together would be helpful, and we hope to have more collaborative chances of working with such great teams in the future.
Industrial and Logistics Market Overview and Forecast – JLL Vietnam
Resilience During Uncertainties – KCN Vietnam
Strategy Toward Recent Steel Price Fluctuation – NS BlueScope Lysaght Vietnam
About KCN Vietnam
KCN Vietnam was established to meet the increasing demand for premium industrial properties for rental. As a developer, KCN aims to provide professionally designed, built, and managed developments for the industrial and logistic sectors, thereby contributing to the country’s attractiveness for FDI.
The prominent industrial real estate developer initially acquired approximately 250 hectares in the land bank, with an investment of over $300 million. In the coming years, KCN Vietnam intends to expand its portfolio, to become one of the leading local industrial real estate platforms. The long-term vision is to capitalize on the growth of the supply chain sector in Vietnam and thrive to meet increasing market demands.