Singaporean businesses expand investment in Vietnam's real estate

Illustrative image. (Photo: baodautu.vn)

Many investors including Sembcorp Development, CapitaLand, Keppel Land, Frasers Property, Mapletree have been doing business in Vietnam over the past 20 years, Dau tu (Investment) newspaper reported.

Industrial property is also attractive to Singaporean investors. Vietnam-Singapore Industrial Park (VSIP), a joint venture between Becamex IDC and a consortium of Singaporean investors led by Sembcorp Development Group, is a typical example.

Established in 1996, VSIP has so far had nearly 10 industrial park development projects in many localities such as Hai Phong, Bac Ninh, Hai Duong, Binh Duong, Quang Ngai, Nghe An and Binh Dinh. It is providing production infrastructure for 880 customers from 30 countries and territories investing in Vietnam with a total investment of 14 billion USD while generating jobs for 270,000 employees in the country and abroad.

VSIP is also a pioneer in the construction of service urban areas and commercial zones which are synchronously planned along with industrial parks.

Mapletree Group, another Singaporean investor, has eight real estate and logistics projects in Vietnam. The group owns and manages more than 1 billion SGD (719.2 million USD) in assets in the country, stretching from Hanoi to HCM City, Binh Duong, and Bac Ninh.

Boustead Projects Limited, Singapore's leading industrial real estate solution developer, launched the first ready-built factory-for-rent project in Nhon Trach 2 Industrial Park in Dong Nai province in 2018. Currently, the second phase of the project is going on. It is expected to complete and welcome tenants in the third quarter of this year.

Previously, Singaporean investors only invested in housing development in Vietnam, but they have recently expanded their portfolio to the logistics and factory real estate segments. 

Frasers Property Vietnam has unveiled its latest development project in Binh Duong province. The group is rushing to complete and put into operation a 40,000 sq.m of ready-built factory-for-rent project at Binh Duong Industrial Park Project (BDIP) in the second quarter of 2022. It is expected that BDIP will provide a total of more than 200,000 sq.m of factories for lease in the next 6-7 years.

CapitaLand, a leading residential real estate developer with nearly 9,000 luxury apartments, that has developed in Vietnam for nearly 30 years, also has plans to invest in industrial real estate.

Ronald Tay, General Director of CapitaLand Vietnam, said that the completion of the merger with Ascendas-Singbridge in 2019 has contributed to strengthening the capacity and foundation for the development of logistics and industrial parks property.

In May, Emergent Vietnam Logistics Development Pte of Singapore received a licence to develop a 34.4 million USD logistics centre in Binh Duong. When completed, this project will provide logistics, storage and warehouses or lease./.

VNA