GLP, Asia’s biggest warehouse operator, is planning to co-operate with Việt Nam’s SEA Logistic Partners, or SLP, in a US$1.5 billion new venture, reported Nikkei Asia Review.
GLP is registered in Singapore, managing 64 million square metres of logistics real estate spanning 16 countries.
It is planning to develop a total of 335,000 square metres of land around Hà Nội and HCM City. These will be GLP’s first warehouses in Southeast Asia.
Việt Nam had become attractive due to its ability to tame the spread of COVID-19 and keep its economy mostly open this year, said the Nikkei Asia Review.
“Many of our [corporate] members shared with us that, uniquely in Việt Nam, they were able to maintain their operations,” said Mary Tarnowka, executive director of the American Chamber of Commerce in HCM City, speaking at a business forum earlier this month.
Việt Nam has a population of 100 million and also an emerging online market.
The Việt Nam E-commerce Association forecasted the country’s online market to grow more than 30 per cent this year, surpassing $15 billion, in part because of the pandemic. SLP and GLP expect the growth to create more warehousing demand.
“Within Southeast Asia, Việt Nam is one of the most attractive markets, given its population dynamics, growing economy, and middle class, which support domestic consumption,” GLP co-founder and CEO Ming Mei said. “When GLP enters a new market, growth and scalability are two key factors we consider.”