KCN Vietnam Group Breaks Ground on New Industrial Warehouse Project in Dong Nai

Bien Hoa City, Vietnam – October 25, 2024 – KCN Vietnam Group, a notable player in the realm of industrial property development, has initiated the first phase of a promising ready-built warehouse project in the Nhon Trach VI Industrial Park, located in Zone D of Dong Nai Province. This groundbreaking event signals the beginning of an extensive project that will cater to the growing demands of logistics and industrial space in the region.

Project Overview

Spanning an impressive 14.5 hectares, the entire development is set to deliver over 97,000 square meters of leasable warehouse space. The first phase alone will contribute more than 44,000 square meters, anticipated to be completed by the second quarter of 2025. This ambitious undertaking positions KCN Vietnam as a leader in addressing the urgent need for modern industrial facilities in Vietnam’s rapidly expanding economic landscape.

Leaders from the Dong Nai Industrial Zones Authority, KCN Vietnam Group, and the construction contractor at the groundbreaking ceremony for the new warehouse project.

Commitment to Sustainability

Aligned with global sustainability trends, KCN Vietnam Group’s project is designed to meet LEED Gold standards. This focus on eco-friendly construction highlights the company’s commitment to sustainable development, a crucial factor for international investors seeking environmentally-conscious options. The project not only promises to address immediate space shortages but also emphasizes the importance of sustainable practices in industrial growth.

Economic Significance of Dong Nai

Dong Nai Province serves as Vietnam’s industrial and logistical powerhouse, playing a vital role in the national supply chain. Handling nearly 50% of the country’s total cargo and over 60% of container throughput at Vietnamese ports, it is an essential hub for commerce. The Southeast region, which includes Dong Nai, boasts an export value of $115.7 billion for the first half of 2024, accounting for approximately 31% of Vietnam’s total export-import turnover.

However, the Vietnam Logistics Business Association (VLA) has noted a significant gap in the logistics infrastructure, with current investments meeting only 25-27% of planned targets. KCN Vietnam’s initiative is poised to contribute substantially to this sector, enhancing the province’s logistics framework.

Future Growth and Expectations

The strategic vision for Dong Nai focuses on achieving 30-35% annual growth in the logistics sector by 2030. The province aims for this growth to account for 20-25% of the service sector’s GDP. KCN Vietnam’s new warehouse project is not just a response to market demand; it is also part of a broader strategy to maximize Dong Nai’s logistical advantages and socio-economic benefits.

Strategic Location and Accessibility

KCN Vietnam Group’s project offers seamless connectivity to crucial transportation routes, enhancing its appeal. Located within a 10 km radius of Long Thanh International Airport and just 20 km from major international ports such as Cat Lai and Cai Mep, the warehouse will facilitate easy access for businesses. This strategic positioning is expected to attract significant foreign direct investment (FDI), further bolstering Dong Nai’s logistics sector.

Contributions to the Local Economy

With the development of this state-of-the-art warehouse system, KCN Vietnam is not only addressing the rising need for logistics space but also supporting the local economy. The project will contribute to job creation and engage various stakeholders, ranging from construction firms to international logistics companies. KCN Vietnam’s commitment to high international standards is a signal to potential investors about the growth potential in the region.

Industry Recognition

The groundbreaking ceremony was attended by various dignitaries, including leaders from the Dong Nai Industrial Zones Authority and representatives from consulting firms and logistics companies. Mr. Nguyen Tri Phuong, Head of the Dong Nai Industrial Parks Management Board, praised KCN Vietnam’s investment in modern industrial infrastructure, emphasizing its role in enhancing Dong Nai’s competitiveness and appeal for foreign investors.

Mr. Hardy Diec, Chief Operating Officer of KCN Vietnam, expressed enthusiasm for the project, stating, “This initiative will contribute to the development of the logistics sector and attract foreign investment while ensuring we meet high standards for sustainability.”

KCN Vietnam’s Broader Vision

Since its establishment in 2021, KCN Vietnam has been on an ambitious path to meet the rising demand for high-quality industrial spaces. With additional ongoing projects across the North and South regions of Vietnam—including newly launched warehouse and factory developments—KCN aims to deliver almost 400,000 square meters of industrial space. Positioned as a leading industrial property platform, KCN Vietnam seeks to fulfill customer needs while playing a vital role in Vietnam’s transition to a sustainable industrial hub.

Recognized for its excellence, KCN Vietnam has received accolades such as the Best Industrial Developer at the Vietnam Outstanding Property Awards 2023 and is ranked among the Top 10 Developers in Vietnam by the BCI Asia Awards.

This groundbreaking project in Dong Nai marks a significant stride towards meeting the regional and national demands for state-of-the-art industrial infrastructure, ensuring that Vietnam remains competitive in the global industrial landscape.