WHA Group, Daiwa House open "DPL Vietnam Minh Quang" logistics facility

The construction will be executed through the joint venture company “DH WHA Logistics Property Minh Quang Vietnam Co., Ltd.” This will be WHA Group’s first logistics facility development project in Northern Vietnam. 

Jareeporn Jarukornsakul, Chairman of the Executive Committee and Group CEO of WHA Corporation PCL. said “The “DPL Vietnam Minh Quang” project which is a joint venture project between WHA Group and Daiwa House is part of our strategy to grow logistics business by focusing on expanding the business both in Thailand and abroad and, at the same time, building strategic partnerships, enhancing capabilities through innovation and technology, while also promoting sustainable practices as well as responding to the growing logistics needs in Northern Vietnam. WHA Group is confident that this project will help strengthen the growth of our logistics business while making Southeast Asia more attractive to investors around the world.”

WHA Group’s logistics business has shown continuous growth in 2023, evidenced by the signing of Built-to-Suit lease agreements and the addition of ready-built factories/warehouse projects totalling 242,000 sqm, which was the highest ever. Currently, the total warehouse space under WHA Group ownership and management stands at 2,945,000 sqm. The company has also achieved success in selling properties and/or leasing property rights to WHART, totalling 142,900 sqm, worth THB 3,566 million. 

The joint venture between WHA Group and Daiwa House 

The collaboration between WHA Group and Daiwa House started in 2016 when the two companies established a joint venture company “WHA Daiwa Logistics Property Co., Ltd.” to develop a logistics facility in Thailand. In March 2023, the joint venture company also developed another commercial facility project on Bangna-Trad Road km.23.

To further expand the business field in ASEAN and East Asia region, with Daiwa House’s resources in developing logistic facilities in Southern Vietnam and the industrial park development record of WHA in Vietnam, the two companies signed a new joint venture agreement on 26th January 2024 to co-develop “DPL Vietnam Minh Quang”. By combining the management resources of both companies from knowledge and networks related to the development of logistics facilities, design, construction and building management and operation, the new joint venture company aims to create a business that attracts companies from around the world that are considering logistics facilities.

The “DPL Vietnam Minh Quang” project

The “DPL Vietnam Minh Quang” project is a joint venture project by WHA Group and Daiwa House. It is a single-story building with a site area of 70,109 sqm and a total floor area of 42,330 sqm. This facility has direct access to the main road, Asian Highway No. 14, and is within 40 km of Hanoi City, making it an excellent location as a delivery base for Hanoi City. In addition, it is about 54 km to Noi Bai International Airport, the largest international airport in Northern Vietnam, and about 80 km to the trading port “Hai Phong Port”, which grants a suitable location for importing and exporting purposes.

In addition to the fact that the area around this facility is an area with a concentration of industrial parks, more than 90 Japanese companies are operating in the area, and demand is expected for this facility to be used by manufacturing and other companies operating in the area to store raw materials and products.

Business potential in Vietnam

Vietnam's population growth and economic growth have continued for decades, and real GDP growth is expected to exceed 5% in 2023. In addition, many countries and regions have concluded free trade agreements and economic partnership agreements, and international trade is thriving, more than 2,300 Japanese companies are operating in the country, and further development is expected in the future.

In addition, Hanoi, the capital city in Northern Vietnam, is the second largest economic city in terms of population after Ho Chi Minh City in Southern Vietnam. It is an area where market expansion and economic development are expected in the future due to the development of the transportation network in central Vietnam and the increase in the city's population.