CapitaLand Development inks MOU for S$1.3b Vietnam investment

CAPITALAND Development (CLD), the development arm of CapitaLand Group, on Friday (Feb 25) announced that it has inked a memorandum of understanding (MOU) to explore the development of an industrial park, logistics park and township development in Vietnam, with a total projected investment value of S$1.3 billion.

Under the MOU, CLD will partner with the People's Committee of Bac Giang province to evaluate several greenfield sites totalling over 400 hectares across the province. This includes a township development along the Cau River as well as several industrial parks and logistics assets near the Viet Yen district.

CapitaLand said in a statement that the MOU reinforces CLD's long-term commitment to Vietnam's economic development. Over the next 5 years, CLD plans to accelerate its growth by expanding its portfolio in asset classes such as data centres, logistics facilities as well as industrial and business parks.

CLD will also seek master planning and urban development opportunities, while expanding its current residential portfolio, added the company.

Bac Giang province is about an hour's drive from Hanoi's central business district via National Highway 1. It has a total population of over 1.8 million and was one of Vietnam's top destinations for foreign direct investment in 2020.

The MOU, signed with the People's Committee of Bac Giang province, was witnessed by the President of Vietnam, Nguyen Xuan Phuc, during his state visit to Singapore. This was reportedly one of the largest investments sealed between a Singaporean company and the Vietnamese government during the state visit.

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The developments under the investment will be "sustainable and climate resilient", with at least 10 hectares of wetland buffers. These developments can collect, treat, and recycle rainwater for better resource efficiency, and will also feature solar panels and electric-vehicle charging stations.

Jason Leow, chief executive of CLD, said: "Vietnam is one of our core markets and we aim to accelerate our investment in the country over the next five years, deepening the significant presence we have established in Vietnam for almost three decades.

"We continue to see opportunities to scale up our investments in township developments, especially in the fast-growing secondary cities, and further expand our interests in data centres, logistics as well as industrial and business parks."

Ronald Tay, chief executive of CLD (Vietnam), added that this investment will support the creation of a dynamic supply-chain network in Vietnam's northern key economic region, and could potentially create over 20,000 new jobs.