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An Phat 1 Industrial Park

Region: Vietnam Investment date: 2021 Sector: Real Estate Exit date: December 2023 Deal type: Status date: Realised

An Phat 1 Industrial Park (An Phat 1 IP) is a 180-hectare sustainable industrial park in Hai Duong, Vietnam.

Located in Vietnam’s northern key economic zone, An Phat 1 IP is a best-in-class industrial park with sustainability at its core. It represents Actis’ first investment in Vietnam, which has become one of the most attractive destinations for companies looking to diversify their supply chain and meet demand for manufacturing facilities outside of China.

An Phat 1 IP is part of Actis’ programmatic investment in the industrial property sector in Vietnam, working with a select group of high-quality local operating partners with strong project execution capability. An Phat Holdings, Actis’ partner in An Phat 1 IP, is one of the largest manufacturing groups in Vietnam. Construction at An Phat 1 IP completed ahead of time, without any compromises on cost or quality, benefitting from APH’s strong on-the-ground capability.

Since the original investment in 2021, Actis and APH have worked together to make An Phat 1 IP a sustainability leader. Actis’ sustainability team assisted APH in identifying, evaluating, and implementing a range of sustainability initiatives, such as drawing on the local workforce during the construction and operation stages, procuring materials from local suppliers, delivering 17% more green area than required, reducing light pollution, minimising impacts to wildlife, and creating a good environment for the surrounding community. Through these initiatives and alignment on sustainability values, Actis and APH have achieved significant construction and operating cost savings, thereby enhancing the project’s financial performance.

The development of the international standard and sustainable industrial parks, such as An Phat 1 IP, will significantly enhance the competitiveness of Vietnam as an attractive destination for multinational corporations to locate their manufacturing facilities and will generate significant tax revenue for country. Already, this industrial park has attracted two of Apple’s global suppliers, which are expected to bring around 25,000 jobs to the local community.

Given its strategic location, and good quality support infrastructure, An Phat 1 IP attracted customer interest much faster than originally envisaged, the result being that Actis outperformed in both returns and exit time frame, bearing out Actis’ investment thesis.