Indochina Kajima Plans $1 Billion Investment in Vietnam

Indochina Kajima, a joint venture between Indochina Capital and Kajima Corporation, is making waves in the Vietnamese industrial real estate sector with ambitious plans to inject around $1 billion into the market over the coming years. This financial commitment is indicative of the growing interest foreign investors have in Vietnam, especially in its rapidly expanding industrial landscape.

During the launch of Core5 Vietnam, a dedicated industrial real estate investment and development platform, Indochina Capital CEO Peter Ryder outlined the venture’s strategic vision. The event took place in Ho Chi Minh City, marking a significant milestone for the company.

Core5 Vietnam aims to provide world-class factory and warehouse properties across key manufacturing and logistics markets in the country. Ryder confidently stated, “Core5 Vietnam plans to roll out a collection of exceptional industrial assets across Vietnam’s key manufacturing markets.” This ambition is rooted in the belief that substantial growth lies within the industrial sector, prompting the venture to set a lofty goal of investing $1 billion over the next five to seven years.

The platform plans to offer a range of solutions, including ready-built factories and warehouses available for lease, along with build-to-suit industrial properties tailored to specific business needs. Its suite of services extends beyond mere property offerings, including development consultation from project managers, facility management expertise, and crucial licensing support. This holistic approach ensures that businesses can swiftly navigate the often complex setup processes that accompany manufacturing and logistics operations.

Under the ownership of Kajima Corp., Core5 Industrial Partners is recognized as a leading entity in the U.S. industrial real estate market, specializing in the development of class-A properties with cutting-edge innovations. Following successful ventures in the United States, the Core5 brand is now poised to tap into the Vietnamese market, which is increasingly recognized as one of Asia’s most dynamic centers for manufacturing and logistics.

Keisuke Koshijima, the executive vice president of Kajima, emphasized the remarkable economic growth of Vietnam, citing it as one of the world’s fastest-growing economies. He attributed this growth to strong foundational elements, including a youthful and rapidly expanding population. “A key to the country’s economic rise within the region is the manufacturing sector, which accounts for over a third of Vietnam’s overall GDP,” Koshijima remarked.

The momentum in Vietnam’s manufacturing sector is further amplified by a notable shift in global supply chains, particularly as companies relocate operations from China. This trend has been underscored by Apple’s recent decision to transfer its iPad production capacity to Vietnam—a move that is expected to set a precedent for other significant electronic manufacturers considering similar relocations.

As Koshijima stated, “The established manufacturing industry combined with the rapidly growing e-commerce sector creates favorable market conditions for the expansion of the Core5 brand into Vietnam.” The company’s current project portfolio encompasses 90 hectares of land, showcasing seven developments in northern Vietnam and one in the southern region. Upon completion, these projects will span nearly 700,000 square meters of net leasable area with a total investment of approximately $450 million.

The inaugural project for Core5 Vietnam is strategically located within Deep C Hai Phong 2 in Hai Phong City, which is set to provide almost 96,000 square meters of net leasable area. Construction is slated to begin shortly, with the aiming handover date for the first factories set for the first quarter of the following year. This marks a promising start for both Core5 and the broader industrial real estate market in Vietnam.