CapitaLand Development inks $1.3b deal to develop parks, towns in Vietnam

It includes the evaluation of 400-hectare greenfield sites in Bac Giang Province.

The CapitaLand Development (CLD), a real estate firm and development wing of CapitaLand Group, is investing $1.3b for the enhancement of its first industrial park, logistics park, as well as township development in Vietnam.

The CLD and the People’s Committee of Bac Giang province signed a memorandum of understanding (MOU) for the $1.3b investment deal. This marked one of the largest investments sealed between a Singaporean firm and the Vietnamese government during Vietnam President Nguyen Xuan Phuc’s state visit to Singapore.

Under the multi-asset investment, CLD will work with the People’s Committee of Bac Giang province to evaluate 400-hectare greenfield sites across the province and develop townships along Cau River, as well as several industrial parks, and logistics assets near the Viet Yen district.

These developments will also be green certified as CLD will pursue Leadership in Energy and Environmental Design (LEED) certification by the U.S. Green Building Council as well as the LEED for communities certification, which recognises efforts to reduce carbon footprint and make sustainable spaces.

CLD CEO Jason Leow said the company’s master planning and urban development expertise and extensive local knowledge will allow them 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,” said Leow.

Ronald Tay, CEO of CLD in Vietnam, meanwhile, said the park and township development will create about 20,000 job openings and will uplift the lives of Bac Giang community.