KBANK AND BW FORGE VND1.12 TRILLION STRATEGIC FINANCIAL PARTNERSHIP to FUEL VIETNAM’S INDUSTRIAL GROWTH
Ho Chi Minh City, May 10, 2024 – KBank, one of Thailand's leading banks, and BW Industrial Development Joint Stock Company (BW), Vietnam's leading for-rent logistics & industrial platform, have announced a strategic financial partnership aimed at propelling the country's industrial and logistics sectors to new heights.
The Signing Ceremony of VND1.12 Trillion strategic financial partnership for new project implementation took place successfully on May 10th, 2024 with the participation of Mr. Chatuporn Boozaya-Angool, General Director of KBank HCM, and Mr.Paul Wee, CFO of BW, signing the agreement and solidifying their partnership. To support BW’s projects within the ready-built factories platform in 2024, KBank HCM provides VND1.12 Trillion in financial support to BW through loan facilities. This also proves KBank HCM’s capabilities to work with local conglomerates.
From left to right: Ms. Doc Nguyen, Director of Capital Markets of BW, Mr. Paul Wee, Chief Financial Officer of BW, Mr. Chatuporn Boozaya-Angool, CEO of KBank HCM and Mr. Suwat Techawatanawana, KBank Executive Vice President.
The signing ceremony marks a significant milestone in the sector's development, showcasing a collaborative effort to capitalise on Vietnam's burgeoning logistics and industrial estate platform.
Mr. Chatuporn Boozaya-Angool, KBank General Director shared: "As a seasoned player in the Vietnamese market, KBank is dedicated to leveraging our robust corporate and FDI capabilities to catalyse growth. This partnership with BW underscores our profound understanding of the local and international business landscape and its potential for expansion."
“As Vietnam's leading logistics and industrial real estate platform, we are uniquely positioned to meet the evolving needs of global clients seeking to establish themselves in Vietnam. With our large land bank, operational excellence, and strong network, we are the partner of choice to capture the growth driven by the manufacturing shift as Vietnam has emerged as the prime destination for supply chain diversification,” said BW’s CFO, Paul Wee, at the signing ceremony.
According to Cushman & Wakefield, the industrial and logistics real estate segment has emerged as a standout performer, outpacing most other asset classes thanks to the development of manufacturing and export industries, e-commerce, transportation, and warehousing since 2018. The "Market Report on Vietnam Real Estate in 2023 and Forecast for 2024" conducted by the Real Estate Brokers Association reveals that in 2023, Vietnam saw the establishment of 7 industrial zones and the initiation of construction for 13 more. Industrial zones overall attracted over 10,400 domestic investment projects and more than 11,200 foreign direct investment (FDI) projects, with registered capital totalling approximately VND2.54 quadrillion and USD231 billion, respectively. Despite economic challenges, occupancy rates in operational industrial zones exceeded 70%, with rental prices surging by around 20% country-wide and rising even sharper within the next few years. From the statistics, it is feasible that Vietnam's industrial real estate sector is thriving, driven by foreign investment and the evolving global supply chain. In this context, international strategic cooperation becomes crucial for Vietnam to seize these opportunities. The strategic financial partnership between BW and KBank illustrates this synergy, strategically positioned to leverage Vietnam's industrial growth and economic prosperity.
The partnership between KBank and BW Industrial Development Joint Stock Company (BW) sets ambitious goals with promising future prospects. As KBank leverages its financial expertise and commitment to the Vietnamese market, it anticipates substantial income growth from the collaboration in FY2024 and FY2025. With a strategic focus on supporting local conglomerates and facilitating foreign direct investment (FDI), KBank aims to enhance its position as a key player in Vietnam's financial landscape while fostering economic development. Simultaneously, BW anticipates significant mutual benefits arising from the partnership. Beyond financial support, the collaboration promises to enhance industrial infrastructure across key provinces, facilitating the seamless operation of businesses within the sector. By leveraging KBank's financial resources and expertise, BW aims to accelerate its ambitious expansion plans, including the launch of new projects within the ready-built factories platform.
This handshake marks a significant milestone in the collaboration history of the two entities. With a shared vision for growth and prosperity, this collaboration underscores the strategic importance of leveraging financial expertise and industrial leadership to drive sustainable development. With our unwavering commitment and foresight, we are confident that this partnership will play a part in shaping Vietnam's industrial landscape for years to come.
About KBank Vietnam
KASIKORNBANK Public Company Limited was established in 1945. KASIKORNBANK (KBank) has been in operation for more than 70 years, covering commercial banking, securities, and related businesses. KBank also has service networks and strategic business partners across Thailand and AEC+3, as well as locally incorporated institutions, with the core strategy to be “The Bank of AEC+3”. In support of this strategy, KBank aims to continually extend and develop its banking business network in AEC+3.
KBank was granted a licence to establish a branch in Ho Chi Minh City on January 19, 2021, and the branch was established in August 2021 to provide services to local customers, including Thai business enterprises and foreign enterprises investing in Vietnam.
KBank has used its knowledge gained from services offered at its two representative offices in Hanoi and Ho Chi Minh City to upgrade the representative office in Ho Chi Minh City to a full-service Bank branch. This includes services primarily for the corporate and SME business sectors related to Thai customers of KBank, in particular business loan, international trade, cash management, and corporate finance. Its services will then be expanded to retail banking, including deposit and personal loan, based on KBank’s digital banking expertise in collaboration with local tech start-ups through investment by KVision, to ensure that such services meet the needs of local retail customers.
About BW
BW is Vietnam’s leading logistics and industrial real estate platform with over 9 million square meters of industrial land in prime locations under control across 51 projects in 12 key provinces in Vietnam. BW has been focused on developing modern warehouses and light industrial to capture the outsized growth opportunities of manufacturing, increasing domestic consumption, and the rapid growth of e-commerce. As of Q4 2023, BW has secured equity commitments of more than US$1 billion from its investors and partners and has formed strategic partnerships with leading global manufacturers, e-commerce, and logistics players to serve one of the fastest-growing markets in Asia.
