CapitaLand Development: Exploring S$1.3B Vietnam industrial, logistics and township development

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CapitaLand Development (CLD) said Friday it signed a memorandum of understanding (MOU) with the People’s Committee of Bac Giang province to explore developing an industrial park, logistics park and township development in Vietnam with a projected investment value of S$1.3 billion, or around VND22.7 trillion. 

“The investment opportunity will be CLD’s first industrial, logistics and township development in Vietnam. Our proposed investment in Bac Giang for the ecological industrial park, modern logistics park and smart township over 400 hectares will support the creation of a dynamic supply chain network in Vietnam’s northern key economic region,” Ronald Tay, CEO of CLD (Vietnam), said in a press release. 

CLD, which is the development arm of CapitaLand, will work with the province to evaluate several greenfield sites totaling more than 400 hectares, including a township development along the Cau River, and several industrial parks and logistics assets near the Viet Yen district, the statement said. 

The developments will use sustainable principles, including wetland buffers, water conservation measures and solar panels, the statement said.

Jason Leow, CEO of CLD, said in the statement that his company aimed to be a long-term partner for Vietnam’s development.

“Our master planning and urban development expertise and extensive local knowledge, puts us in a strong position to contribute to the next stage of Vietnam’s industrialisation and modernisation. 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,” Leow said in the statement. 

“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,” Leow said.

The MOU was signed during Vietnam President Nguyen Xuan Phuc’s state visit to Singapore, the statement said.