Business park developer BW secures $44 mln mortgage from Thailand’s Kasikornbank

BW Industrial Development JSC, a leading logistics and industrial real estate developer in Vietnam, and Thailand’s major lender Kasikornbank have entered a VND1.12 trillion ($44 million) strategic financial partnership.

Under the partnership, Kasikornbank will provide the mentioned money to BW Industrial, aiming to enhance Vietnam’s industrial and logistics sectors to accommodate rapid growth of logistics platforms and industrial estates in the country, the bank said in a Thursday statement.

Meanwhile, BW Industrial, founded by leading global growth investor Warburg Pincus and Vietnam’s leading infrastructure developer Becamex IDC, said the move is a collaborative effort to capitalize on Vietnam’s burgeoning logistics and industrial estate platform. The cooperation can fuel Vietnam’s industrial growth, it added.

As of end 2023, Vietnam hosted 414 industrial parks, covering 128,126 hectares, according to the Ministry of Planning and Investment. Among those, 293 are operational with a total area of 89,171 hectares, while the rest of 35,517 hectares are under construction. The occupancy rate was 74%, or 46,551 hectares were occupied.

Also according to the ministry, as of end-2022, those industrial parks attracted over 21,600 projects with total registered capital of $337 billion, including 11,200 foreign ones with the total registered capital of $231 billion.

Vietnam’s index of industrial production (IIP) remained on an upward trend, rising 6.3% year-on-year in April and 6% in January-April this year.