Successful Singaporean firms are expanding their footprint in this
market. Nhu Ngoc reports.
Sembcorp Industries in April made
a big investment expansion stride in Vietnam by obtaining an investment
certificate for an industrial park and township project in central Quang Ngai
province, its fifth integrated urban development in Vietnam.
At the same time, Quang Ngai
People’s Committee awarded an in-principle approval to the group for developing
a 1,200 megawatt power plant.
Sembcorp Industries announced it
would invest $2 billion into the power project. Meanwhile, the industrial park
and township, developed through a joint venture with Becamex IDC,
Vietnam-Singapore Industrial Parks and Township Development JV, will have total
investment capital of $337 million.
By developing two new projects in
Vietnam, Sembcorp Industries indicates it sees potential opportunities in this
market.
Now, many other Singaporean firms
are following in Sembcorp’s footsteps.
Singapore is now the fourth
largest investor in Vietnam, with 1,063 projects worth $23.3 billion till the
end of July, according to Vietnam’s Foreign Investment Agency. In 2012’s first
seven months, Singaporean companies committed to invest in 54 projects
capitalised at $178 million. At the same time, 25 investors committed to expand
investment with total capital of $102.6 million.
According to a survey by
Singapore’s United Oversea Bank Limited, Vietnam is in the top five Asia
markets where Singapore’s corporate leaders are eyeing up, with 15 per cent of
business leaders claiming Vietnam was their first priority for overseas
investment.
“We view Vietnam as an attractive
investment destination, given its favourable demographics, strong foreign
direct investment with many international corporations choosing Vietnam as an
alternative production base to China coupled with its pro-business policies,”
said a Mapletree Vietnam representative.
Mapletree entered Vietnam in 2005
with its first foray into Binh Duong province to set up its first office and
the development of Mapletree Logistics Centre in the Vietnam-Singapore
Industrial Park I. The centre has been fully leased since it opened in March
2007 and its success is followed by the development of Mapletree Binh Duong
Logistics Park in Vietnam-Singapore industrial Park II.
The investor is also building a
Mapletree Business City @ Binh Duong, a first-class business park development
in southern Binh Duong province and a Mapletree Bac Ninh Logistics Park in
northern Bac Ninh province.
Until now, Mapletree’s committed
investment in Vietnam is $1 billion in logistics, industrial, office, retail and
commercial real estate projects in Binh Duong, Bac Ninh, Hanoi and Ho Chi Minh
City.
“We continue to look out for good
investment and development projects in Vietnam to fuel our expansion, we will
evaluate opportunities in other provinces as they arise,” said the
representative.
CapitaLand is another Singaporean
investor expanding its business in Vietnam. The developer in partnership with
Vietnam’s Khang Dien Company launched PARCSpring, its first value housing
project in Vietnam, last month. Meanwhile, Mulberry Lane, CapitaLand’s first
residential project in Hanoi, will be celebrating its topping-out this month to
mark the successful completion of the main structural works.
“Given Vietnam’s strong economic
growth coupled with rapid urbanisation and a substantially large group of young
and aspiring middle income earners, the underlying demand for housing needs
will remain strong, especially in the mass market housing segment,” said Yip
Hoong Mun, CapitaLand in Vietnam deputy CEO.
“To ensure good value and keep
prices attractive for our homebuyers, we will acquire sites that reasonably
priced and are supported by good transportation network and enjoy easy access
to the city centers,” he added.
To meet the local demand,
CapitaLand plans to introduce apartments being affordable to the genuine buyers
whose mortgage repayment is pegged at around 40 per cent of homebuyers’ average
household income.
Even as Vietnam’s economy is
slowing, Singapore’s business leaders believe that investing in Vietnam is
better than in the United States and Europe, according to the United Overseas
Bank survey.
Foreign Investment Agency
statistics show that Singaporean companies’ investments spread in many sectors,
including urban development, infrastructure, education, retail and healthcare.
In the urban development, apart
from CapitaLand, Mapletree and Sembcorp, other developers like Keppel Land,
GoucoLand and Banyan Tree have been investing in Vietnam.
In the education sector,
KinderWorld has embarking on a major initiative to establish a Super School
concept in Binh Duong New City. Singapore International School @ Binh Duong New
City will comprise of a through-trained education from pre-nursery to high
school.
And in healthcare sector, the
Shangri-La Healthcare Investment Pte is building a $400 million International
Hi-Tech Healthcare Park in Ho Chi Minh City. The construction is expected to
complete this year, making the park be the largest healthcare centre in Ho Chi
Minh City.
vir.com.vn
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