VSIP Bac Ninh 2 is a prime logistics gateway for business expansion in Vietnam

Following high occupancy success at KTG Industrial Yen Phong IIC, the company has advanced to its next milestone: VSIP Bac Ninh 2. The project spans 14 hectares in 2 phases.

Phase 1 is currently underway, featuring 44,000 sq.m of net leasing area across seven modern ready-built factories designed for green manufacturing. The site expects to welcome its first tenants by late 2025.

Strategically positioned 24 minutes from Noi Bai International Airport and 30 minutes from Hanoi, the park offers seamless connectivity via four expressways, three international airports, and two deep-sea ports.

The achievement of LEED Gold certification reflects more than a green standard; it represents a shared commitment to long-term value. For the tenants, it translates into tangible benefits, such as maximising operational efficiency and a healthier work environments, which align with environmental, social, and governance (ESG) expectations.

KTG Industrial connects with German firms at AHK Roadshow 2025, showcasing its ESG-aligned development

Designed to minimise costs and environmental impact, VSIP Bac Ninh 2 is equipped with LED lighting and water-efficient fixtures, skylights for natural daylight, and solar-ready rooftops, enabling future renewable integration. These options allow tenants to reduce operating costs while meeting ESG goals.

KTG Industrial knows a sustainable building is also one that cares for its people. The project includes green spaces that improve air quality and enhance comfort. Buildings feature thermal insulation for temperature stability and mechanical ventilation for improved air circulation. Each unit is designed with practical front-office access and ample parking.

Today’s factories are built with flexibility. Wide column spans provide diverse production layouts, while an initial power supply at 100W/sqm is scalable to 200W/sqm, supporting high-energy operations. Upgrades have been modernised to avoid disruptive construction, allowing tenants to scale with ease.

VSIP Bac Ninh 2 reflects KTG Industrial’s commitment to ESG values. With energy efficiency, employee wellbeing, and high operational focus, the project isn’t just a space for business, it’s a vision for responsible development.

Source: VIR

The event witnessed the participation of representatives of Bac Ninh Industrial Zones Management Authority, Dang Trong Duc, CEO of KTG Industrial, and other industry professionals from Savills, CBRE, JLL, and various real estate entities.

Groundbreaking ceremony of KTG Industrial Yen Phong IIC – Phase 2

Phase 1 of the project in Yen Phong IIC was successfully completed in November 2023. Building on this achievement, KTG Industrial is now introducing and initiating the second phase to meet the growing market demand.

KTG Industrial Yen Phong IIC is situated in Yen Phong IIC Industrial Park, covering a total area of 15 hectares and divided into two phases.

Phase 2 encompasses 43,000 square metres of construction area, featuring seven ready-built factories surrounded by modern transport infrastructure. The location provides connectivity to two major ports and three international airports via four expressways within the key economic zone in the Northern region.

Investors choosing KTG Industrial Yen Phong IIC not only benefit from facilities built and managed to Singaporean standards but also receive comprehensive services from initial consultation to ongoing support throughout the investment process.

Dang Trong Duc, CEO of KTG Industrial

Dang Trong Duc, CEO of KTG Industrial said, “Continuously delivering international-standard factory systems to Vietnam’s industrial real estate market is KTG Industrial’s unwavering commitment. With KTG Industrial Yen Phong IIC – Phase 2, we pledge to offer our customers the best products and services, contributing to the socioeconomic development of the region and the country.”

Additionally, KTG Industrial Yen Phong IIC has opened its first Experience Hub in Bac Ninh, featuring human-centric decorations to showcase their projects in the Northern area. The hub aims to be a dynamic platform for tenants and a welcoming space for potential investors.

Emphasising their commitment to excellence, KTG Industrial positions the Experience Hub as a “one-stop-service” destination.

Experience Hub of KTG Industrial Yen Phong II

On the same day, KTG Industrial officially inaugurated Experience Hub at Yen Phong IIC. The hub provides amenities such as meeting rooms, relaxation areas, and exhibition zones for tenants. This will be the reception point for visitors to KTG Industrial’s projects in the North and act as a networking and interaction spot for tenants seeking supply chain partners

KTG Industrial Yen Phong IIC is a collaborative investment project between two corporations: Khai Toan (Vietnam) and Boustead Projects (Singapore).

Phase 2 of the project promises trusted factory solutions for more efficient industrial production, meeting the increasing demands of both domestic and international investors, especially small and medium-sized enterprises. The project is expected to be completed and welcome tenants by Q1/2025.

KTG Industrial managed by BKIM (‘KTG Industrial’), a co-developed brand of KTG and Boustead Projects, stands as a prominent force in Vietnam’s industrial real estate sector. With a focus on ready-built factories, warehouses, and built-to-suit factories, KTG Industrial is committed to being the preferred choice for foreign businesses seeking robust and sustainable development opportunities.

KBIL is Boustead Projects’ strategic collaboration with Khai Toan JSC (KTG) and already owns a portfolio of logistics and industrial properties in Vietnam through various special purpose vehicles.

As of last March, KBIL had interests in eight completed properties with a total market valuation of almost $132 million, comprising over 260,000 square metres, and an overall committed occupancy rate of 76 per cent.

Minh Quang had previously signed an agreement with a developer in relation to a land lot with an area of approximately 136,450sq.m in the district of Yen Phong in Bac Ninh province. The land is expected to be handed over to Minh Quang sometime in the second half of next year, with phased construction able to commence thereafter. The land has a tenure of about 45 years to 2069.

Through the acquisition of Minh Quang, the Singaporean firm aims to develop the land into industrial facilities for lease, adding to KBIL’s growing portfolio.

Vietnam continues to stand out as one of the world’s fastest growing economies, with a proven track record in offering multinational corporations the ideal business environment for investment, manufacturing operations, and logistics networks.

Given its strategic location and long-term growth factors, Boustead Projects believes that this land purchase aligns with its prudent expansion strategy and will strengthen its presence in Vietnam, which it views as a key market.

The consideration for the purchase of the shares is equal to almost VND262 billion (equivalent to $10.7 million) and is expected to be funded by KBIL by way of issuance of equity to Boustead Projects and KTG in the proportion of their respective shareholding ratio in KBIL.

Boustead Projects, via its wholly owned subsidiary BP-Vietnam Development Pte Ltd, has agreed to subscribe for such number of shares at the aggregate subscription price of VND128.3 billion (equivalent to $5.2 million), representing 49 per cent of the purchase consideration.

The inauguration ceremony for the newly formed subsidiary, Ziehl-Abegg Vietnam, took place on July 11 in Ho Chi Minh City. Currently, construction of an advanced facility close to the city is underway.

To address the persistent surge in customer demand, construction work has already commenced, with production at the facility slated to commence in the first half of 2024. Full-scale production is anticipated to be achieved by the end of the same year.

Encompassing a sprawling expanse of 14,000 square meters, the production site will allocate 12,900sq.m for manufacturing purposes and 1,100sq.m for administrative functions.

This expansion initiative builds on prior investments to enhance the company’s production capacities in Poland and the United States, along with ongoing investments in Germany.

Joachim Ley, Ziehl-Abegg’s Production director, underscored the paramount importance of expanding production worldwide in order to meet customers’ escalating demands.

Ley emphasised, “The new facility in Vietnam holds particular significance for the Asian and Australian markets, allowing us to continually provide our customers with optimal solutions.”

The establishment of Ziehl-Abegg Vietnam represents another pivotal stride in the company’s overarching global expansion strategy. With the establishment of a production facility in Vietnam, Ziehl-Abegg aims to bolster its market presence in the Asian and Australian regions, effectively enhancing its ability to serve customers in these areas.

Furthermore, Ziehl-Abegg disclosed the appointment of Alexander Reich as the managing director of Ziehl-Abegg Vietnam. Working alongside COO Joachim Ley, Reich will assume a crucial role in spearheading the success of the new facility.

Ziehl-Abegg, headquartered in Künzelsau, Germany, is a globally renowned industry player in the field of ventilation, control, and drive technology. With a storied history dating back to the 1950s, when it pioneered the development of external rotor motors, the company continues to specialise in electric motors that power a diverse array of applications, ranging from elevators to medical equipment – such as computer tomography devices – and deep-sea underwater vehicles.

Boasting an illustrious track record of innovation, Ziehl-Abegg employs 2,800 skilled employees in its production plants in southern Germany, and its global workforce numbers 5,100, spread across 15 production facilities, 30 subsidiary companies, and 117 sales locations around the world.

With a product portfolio exceeding 30,000 items, the company’s offerings are distributed across more than 100 countries. Ziehl-Abegg generates an annual turnover of $981.5 million.

Founded by Emil Ziehl in Berlin in 1910 as an electric motor manufacturer, the company relocated its headquarters to southern Germany in the aftermath of World War II. Ziehl-Abegg SE remains a family-owned enterprise and is not publicly traded.

Nguyen Thi Hoang, Vice Chairman of Dong Nai People’s Committee, hands over the investment licence to the representative of Ziehl-Abegg Vietnam Co. – Photo baodautu.vn

Dong Nai – The People’s Committee of the southern Dong Nai Province granted investment certificates to two foreign-invested projects worth US$30 million on Tuesday.

German Ziehl-Abegg SE will develop a $20 million plant to manufacture products related to ventilation systems. The plant is slated to be completed in late 2024.

Meanwhile, HKC Overseas Limited from China will implement a TV screen-producing factory valued at $10 million.

The committee’s vice chairwoman Nguyen Thi Hoang praised the two large-scale projects, saying that they would play an important role in speeding up local economic development.

She suggested investors focus on environmental protection to work with local authorities towards green and sustainable industrial development in the process of implementing their projects.

Hoang added that local authorities would constantly make efforts to create an open, safe, transparent investment environment, offering businesses maximum support and considering their development as the province’s success.

The province-based Industrial zones (IZs) have thus far this year attracted 37 new foreign-invested projects with a total registered capital $144.6 million, statistics from the Dong Nai IZs Authority showed.

During the period, 52 operating projects were allowed to increase capital by $545.7 million.

Dong Nai now has 1,585 valid foreign-invested projects, with a total capital of $33.8 billion, being one of the leading localities in the country, in terms of foreign investment attraction.

By the year-end, the province said it would continue to attract large-scale projects using advanced technology, skilled workers, and those in supporting industries.

At the same time, it would restrict projects that use a lot of unskilled labour, are small in scale, and have outdated technology, which affects the environment.