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Singapore, 25 February 2022 – CapitaLand Development (CLD), the development arm of CapitaLand Group, has signed a Memorandum of Understanding (MoU) with the People’s Committee of Bac Giang province.  The MoU outlines CLD’s and the provincial government’s mutual interest to explore the development of CLD’s first industrial park, logistics park and township development in Vietnam with a total projected investment value of S$1.3 billion (VND22.7 trillion^[1]).

The exchange of the signed MoU was witnessed by the President of the Socialist Republic of Vietnam Mr Nguyen Xuan Phuc during his state visit to Singapore.  The MoU marks one of the largest investments sealed between a Singaporean company and the government of Vietnam during the state visit.

The MoU further reinforces CLD’s long-term commitment to Vietnam’s economic development.  In the next five years, CLD plans to accelerate its growth, 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

“As a responsible real estate company, CLD seeks to create quality spaces for the community to live, work and play through sustainable and innovative solutions to enrich their lives.  Together with CapitaLand Hope Foundation^[2], CLD will also continue to support local communities in Vietnam, particularly the development and education of vulnerable children in the country,” added Mr Leow.

CLD remains committed to being a long-term partner to Vietnam’s economic 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.

Mr Jason Leow, CEO, CapitaLand Development

S$1.3 billion multi-asset investment in Bac Giang province
As part of the MoU, CLD will partner with the People’s Committee of Bac Giang province to evaluate several greenfield sites totaling over 400 hectares across the Bac Giang province.  This includes a township development along the Cau River as well as several industrial parks and logistics assets near the Viet Yen district.

The developments are designed to be green certified with plans to obtain a Leadership in Energy and Environmental Design (LEED) certification by the U.S. Green Building Council.  The entire development is also pursuing LEED for Communities.  These certifications will recognise CLD’s efforts to create sustainable spaces and reduce carbon footprint.

Drawing from Singapore’s Active, Beautiful, Clean (ABC) Waters Programme, the proposed developments will be sustainable and climate resilient while also creating green and blue spaces that promote community building and placemaking – including at least 10 hectares of wetland buffers.  The developments can collect, treat, and recycle rainwater for better resource efficiency, while the deployment of smart water meters will further encourage tenants and the community to save water.  To reduce the developments’ carbon footprint, solar panels will be deployed and green mobility options such as cycling will be encouraged with provision of well-designed sidewalks and bike paths – a minimum of 40% of which will be covered by shading.  Electric vehicle charging stations will also be available. 

The Bac Giang province is located about an hour’s drive from Hanoi’s central business district via the National Highway 1.  With the completion of Ring Road 4 in 2025, the Noi Bai International airport will be a 30-minute drive away.  The Bac Giang province has a total population of over 1.8 million[3] and is one of Vietnam’s top destinations for foreign direct investment in 2020[4].  With improving infrastructure and ongoing interest from the world’s top manufacturers, the province is on track to become Vietnam’s new hotspot for residential and industrial development.

CLD’s presence in Vietnam
CLD’s portfolio in Vietnam comprises one retail mall, two integrated developments, and over 12,000 quality homes across 16 residential developments.  Its strong expertise in master planning, land development and project execution has won numerous accolades including Asia Pacific Property Awards, PropertyGuru Asia Property Awards, PropertyGuru Vietnam Property Awards and Golden Dragon Award. 

For more on CLD’s recent economic and social contributions to Vietnam, please see the Annex.

CapitaLand Development affirms commitment to being a long-term partner to Vietnam's economic development
CapitaLand Development affirmed its commitment to being a long-term partner to Vietnam’s economic development in a private one-on-one meeting with the President of the Socialist Republic of Vietnam, Mr Nguyen Xuan Phuc (pictured right) on 26 February 2022 during his state visit to Singapore.

Mr Wong Kan Seng, Chairman of CapitaLand Group (pictured left) provided President Phuc with an overview of CLD’s activities in Vietnam, CLD’s investment strategy and plans for Vietnam. He also spoke with President Phuc on opportunities for CLD to further contribute to Vietnam’s development.

^{[1] Based on the exchange rate of S$1 to VND16,954 unless stated otherwise
[2] CapitaLand Hope Foundation is the philanthropic arm of CapitaLand Group
[3] Vietnam’s General Statistics Office
[4] Foreign Investment Agency, Vietnam’s Ministry of Investment and Planning}