Free Wheel Spins
Bac Giang International Logistics Centre was launched on April 22 with an investment of $168 million, and is expected to become a crucial link in the global supply chain.
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| Bac Giang International Logistics Centre launch |
Being invested by CNCTech Group, Dolphin Sea Air Services Corporation and Thien An Investment JSC, the logistics centre is located on National Highway 1A, which boasts first-class warehouse supply to meet the growing demand in the northern Vietnamese market.
Its strategic position within the golden economic triangle of Hanoi – Haiphong – Quang Ninh provides convenient connectivity to industrial zones and key logistics centres via national highways No.1A and No.37.
The centre is designed to meet growing demand for logistics infrastructure from businesses in Bac Giang and neighbouring provinces, positioning the area as a new node in northern Vietnam’s logistics network.
The project is a strategic product as a key component of the logistics spearhead in CNCTech Group’s industrial and logistics infrastructure ecosystem. It has been approved by the prime minister as a national level-II logistics centre, covering a planned area of 67 hectares.
At the launch ceremony, Chairman of Bac Giang People’s Committee Nguyen Viet Oanh said, “In recent years, the province’s socioeconomic development has made remarkable strides. Transportation, urban, industrial, and social infrastructure have been synchronously invested in and have yielded high efficiency. However, the province’s logistics service sector has not yet matched its potential, advantages, and socioeconomic development level. The logistics system remains fragmented, transportation costs are high, and trade delivery times are prolonged.”
Recognising this bottleneck, the local authorities have focused on directing the robust development of the logistics system, incorporating it into the provincial plan. This includes developing eight comprehensive logistics centres covering nearly 500ha, three inland container depots, and 33 inland waterway ports.
“Bac Giang, with its strategic location between Hanoi and border provinces, has long been known as a dynamic industrial hub. The remarkable development of the province’s industrial parks has created a solid foundation for the establishment of Bac Giang International Logistics Centre. This centre is not only located on vital transportation routes such as Hanoi-Lang Son Expressway but also directly connects to major border gates, optimising the transport of goods from Bac Giang to the world,” said Oanh.
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| A model of the logistics centre |
The project is not merely a warehousing facility, but also a symbol of the integration of modern infrastructure and advanced technology. The centre includes multifunctional warehouse areas, customs-controlled warehouses, non-tariff warehouses, and automated warehouses, meeting the needs of various industries. Notably, it integrates end-to-end logistics solutions, supporting businesses in optimising transportation costs and enhancing production efficiency.
With a long-term vision, the centre aims not only to optimise domestic supply chains but also to become a key connection point in the global logistics network.
Nguyen Van Hung, chairman of the Board of Members of CNC Tech Group, shared, “The establishment of this centre is a strategic step in developing Vietnam’s logistics infrastructure. We are committed to long-term and robust investment in this sector, as logistics is not just infrastructure but an indispensable part of enhancing the competitiveness of Vietnamese businesses on the international stage.”
Vietnam’s Exclusive Economic Zone (EEZ) has a wind power potential of 1,068 GW, nearly 470 GW more than previously estimated, according to a report released Friday by the National Center for Hydro-Meteorological Forecasting (NCHMF).
An offshore wind power project in Vietnam. Photo courtesy of VnEconomy.
The report, titled “Detailed Assessment of Wind Resource Potential in Coastal (up to 6 Nautical Miles) and Offshore Areas in Vietnam,” was conducted by the NCHMF with support from the United Nations Development Program (UNDP) and the Norwegian Embassy.
This wind potential was measured at a height of 100 meters above sea level, said Mai Van Khiem, director of the NCHMF. He noted that from November to February each year, wind capacity accounts for half of the annual total – peaking in December and gradually decreasing, with the lowest levels recorded in May.
The southern offshore areas account for 894 GW of this potential, while the northern areas contribute 174 GW.
In nearshore zones (up to 6 nautical miles), the total technical wind power potential is 57.8 GW. The Bac Lieu-Ca Mau region alone contributes nearly 30% of this, while the Ninh Thuan-Binh Thuan area accounts for 24 GW. Although the Quang Tri-Hue region has lower potential, it offers stable wind speeds during the winter months. The Red River Delta has a modest potential of 0.17 GW.
Compared to previous assessments, such as the World Bank’s 2021 study and data from the Global Wind Atlas (GWA), this report provides more detailed and higher-resolution information, both spatially and temporally.
“Notably, the EEZ potential outlined in this report exceeds the World Bank’s estimate by 469 GW, primarily due to the broader scope of the survey and more refined climate modeling using domestic observational data,” the research team explained.
They also emphasized the use of the Weather Research and Forecasting (WRF) model customized specifically for Vietnam, which enhanced the accuracy of the results.
The findings are based on wind data collected from 26 coastal and island meteorological stations, satellite sources from CCMP, ASCAT, and SCATSAT-1 (covering 30 years of ocean surface wind data), as well as buoy data from Nghe An province and seabed depth measurements.
A key innovation in this report is the integration of potential impacts from extreme weather events. Typhoons and tropical depressions occurring between August and October pose structural and safety risks to wind turbines. Meanwhile, strong winds and high waves during the northeast monsoon season can hinder access to and maintenance of offshore wind systems.
To support model calibration and long-term observation, the research team recommends increased investment in offshore wind monitoring stations at heights exceeding 100 meters. They also suggest incorporating these findings into offshore wind development strategies and national marine spatial planning.
Additionally, the team advocates for expanding research into other forms of marine renewable energy, such as wave, tidal, and ocean thermal energy.
“Vietnam has some of the most promising offshore wind resources in the region, creating a strong foundation for the development of a large-scale offshore wind industry. This will contribute to energy security, green economic growth, and the achievement of net zero commitments,” they said.
The study provides a vital scientific basis for policy planning, identifying priority development zones, attracting investment, building infrastructure, and training the future offshore wind workforce, the team added.
Hoang Duc Cuong, deputy director of the Department of Meteorology and Hydrology, emphasized that Vietnam lies within a strong and stable Asian monsoon belt, giving it abundant wind energy potential. He noted that this renewable source will play a key role in meeting the country’s climate change goals and advancing a low-carbon economy.
However, he also warned that marine-based natural disasters are highly complex and could significantly impact the stability of offshore wind operations and energy generation.
The ever-changing status of the global economy following last week’s tariff shocks continue to loom large among investors in Vietnam’s real estate market.
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| All real estate segments are at risk of losing appeal if high global tariffs are eventually put in place, photo Le Toan |
Pham Lam, vice chairman of the Vietnam Real Estate Association, said that while it is premature to determine the full impact of new US import tariffs on Vietnam’s property market, early signs point to shaken investor sentiment and potential disruptions to foreign investment.
“If multinational corporations scale back or delay their factory expansion plans, the demand for land and factory leasing could decline, which may place downward pressure on industrial rents, lead to increased vacancy, and postpone new industrial zone developments,” he said. “This would affect key industrial property markets such as Bac Ninh, Bac Giang, Haiphong, Long An, and Binh Duong.”
Meanwhile, real estate expert Nguyen Hoang said that the United States remains one of the most critical export destinations for Vietnam’s foreign-invested enterprises.
“Any change in tariffs will significantly influence capital flows, investor confidence, and manufacturing strategies of companies operating in Vietnam. If a high tariff is fully implemented in 90 days, it could seriously diminish Vietnam’s investment appeal – affecting all real estate segments as a result,” Hoang said.
Vietnam’s property market has only recently emerged from a prolonged two-year downturn.
“It remains highly sensitive to economic and policy shocks. Investors have remained cautious, and any further external pressure could threaten to break the fragile liquidity recovery, potentially sending the market back into a period of short-term stagnation,” Hoang added.
Alex Crane, managing director of Knight Frank Vietnam, said that the recent tariff twists by the US casts a shadow of uncertainty, with potential implications for various segments of the market.
While manufacturing has shown resilience, it is still on the path to full recovery from the pandemic, particularly in labour-intensive sectors like garments and furniture. Tariffs imposed now would not have as severe an impact as they might have during Vietnam’s 2019 peak, but consequences are still expected, Crane said.
“I may expect that major transactions, especially those involving large capital outlays, are being paused or undergoing extended due diligence as investors and developers reassess assumptions and underwriting models and commercial occupiers are expected to defer large capital expenditures in the short term,” Crane said.
In addition, the response from the State Bank of Vietnam, particularly regarding monetary policy, will be crucial. While a rate cut may not effectively stimulate residential demand (as demonstrated in 2024), targeted lending for key industries and easing of loan-to-value ratios or debt-to-income limits for developers could provide relief.
“At present, most segments of the real estate market are in a holding pattern, awaiting clarity from the evolving negotiations between the Vietnamese and US governments. While uncertainty is unsettling, Vietnam’s underlying fundamentals remain sound, and the market’s long-term outlook is still viewed positively,” he added.
Nguyen Dung Minh, deputy CEO of MIK Group, has warned that under the new US tariff regime, many investors will be forced to reassess their strategies, likely leading to a decline in the demand for industrial land.
“Investors will need time to re-evaluate their actual demand and incoming orders and make necessary adjustments before they can fully gauge the extent of the impact,” Minh said.
He added that the implications go beyond just industrial land. “The new US tariffs are also expected to disrupt supply chains and negatively affect supporting sectors such as logistics, warehousing, and raw materials manufacturing. As production slows, so too will the demand for land associated with these services,” Minh said.
| Trang Bui, country head Cushman & Wakefield Vietnam
While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries. This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements. Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely. Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution. Nguyen Thi Bich Ngoc, CEO, Sen Vang Group When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations. In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors. Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart. Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally. Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development. Vo Hong Thang, Investment director DKRA Group The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented. In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle. In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users. Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam. |
Bac Giang International Logistics Centre launched
Vietnam’s Exclusive Economic Zone boasts over 1,000 GW of wind power potential: report
Uncertainty weighing on real estate
Central Vietnam city seeks $1.84 bln for 15 projects in economic zone
