Project

Keppel remains steadfast in Vietnamese real estate market

Published

4 weeks ago

February 14, 2025

Keppel has made its mark as a global asset manager and operator in infrastructure, real estate, and connectivity. Its real estate president for Vietnam, Joseph Low, shares with VIR’s Quynh Chau the company’s development plan for 2025 and beyond.

What have been the highlights of Keppel’s activities in Vietnam thus far?

Vietnam is one of our key markets. Over three decades, Keppel has grown to become one of the largest foreign real estate investors in the country, with 25 projects and a total registered capital of approximately $3.8 billion.

Keppel remains steadfast in Vietnamese real estate market

Joseph Low, President, Real Estate (Vietnam), Keppel Ltd.

Keppel’s real estate division is an innovative urban space solutions provider that leverages technology to deliver sustainable and customer-centric solutions that enrich people and communities. It is focused in the areas of sustainable urban renewal, senior living, urban living, retail and large-scale integrated developments.

In Vietnam, we are well known for our quality residential developments, such as Estella Heights, Celesta Rise, and Empire City, as well as Grade A commercial developments like Saigon Centre in Ho Chi Minh City. We are also strengthening our retail presence in Hanoi, and will launch the Hanoi Centre retail development this year.

We are bringing in investors to fund the creation of high-quality projects through our quality investment platforms and asset portfolios. A good example is the Keppel Vietnam Fund, our private fund which combines capital from Keppel and global institutional investors to co-invest in residential developments, commercial properties as well as mixed-use projects and townships in Vietnam. To date, the fund has invested alongside Keppel in several high-quality residential projects in Hanoi and Ho Chi Minh City.

Our deep operating capabilities extend beyond real estate and include infrastructure solutions. In 2023, our infrastructure division introduced an energy-as-a-service (EaaS) solution to Vietnam. Our subscription-based EaaS solution, which includes energy supply, cooling, decarbonisation and smart energy management, enables businesses and building owners to enjoy significant energy savings without having to make heavy upfront investments.

As Vietnam accelerates its plans to reach net-zero by 2050, we see compelling opportunities for us to offer more of our sustainability solutions and services in the country.

Keppel has consistently championed sustainability. Could you share some of your notable sustainability initiatives in Vietnam?

We are committed to making a positive impact through the three-fold approach of running our business responsibly, making sustainability our business through investing in and creating solutions for a sustainable future, and contributing to the community through volunteerism and philanthropy.

In Vietnam, we have integrated various innovative and sustainable initiatives into our operations to achieve meaningful environmental, social and governance outcomes for our stakeholders. For example, our projects are designed to meet high green standards and incorporate features such as low-carbon energy sources, including renewables, chemical-free cooling tower water management systems and environmentally friendly building materials.

We are also driving sustainable urban renewal (SUR) initiatives, where we leverage technologies to future-proof and extend the lifespan of older buildings. We believe that retrofitting existing assets can be a more sustainable, less costly and faster-to-market solution compared to demolition and rebuild. It also allows asset owners to update their buildings to be smarter, better connected, more sustainable and ultimately deliver higher returns to its owners.

A prime example is the implementation of solutions for Saigon Centre, Keppel’s flagship mixed-use project in central Ho Chi Minh City. The initiatives rolled out under SUR have achieved over 40 per cent energy savings since July 2023. Saigon Centre also generated over 166,000 kWh of renewable energy between 2021 and 2024 through its rooftop solar panels.

Bytes for Future helps equip young generations with the necessary tools to thrive in the digital era

Meanwhile, Keppel’s CSR programmes focus on environmental protection, education and supporting underprivileged communities.

Since 2021, we have contributed over $560,000 to society through various meaningful initiatives. This includes a donation under SG Community Cares which supported communities impacted by Typhoon Yagi, and a $296,000 donation to support COVID-19 relief efforts.

One of our key CSR projects is the Living Well initiative, which provides clean water to areas in the Mekong Delta affected by drought, benefiting around 70,000 people. Keppel also carried out the R.I.S.E. to the Challenge campaign, a public outreach initiative to raise awareness about climate change, as well as planted 3,000 trees in Dong Nai province in support of Vietnam’s national programme that targets to plant one billion trees.

To enhance digital learning for students, we launched a new Bytes for Future initiative in Dong Khoi and Bien Gioi secondary schools in Tay Ninh province. Under the initiative, Keppel sponsored 80 computers and four air conditioners to enhance the learning environment for students at the schools, as well as donated books to the schools’ libraries. The initiative has benefitted over 800 students.

Over the past four years, Keppel’s employees have volunteered nearly 8,000 hours, supporting nearly 85,000 beneficiaries across various outreach activities. As we expand our footprint in Vietnam, we remain dedicated to sustainable development and creating a positive impact on local communities.

Saigon Centre, Keppel’s flagship mixed-use development in Vietnam

What are Keppel’s development plans in this country?

With Vietnam’s strong focus on sustainable development, we believe that Keppel’s solutions can help unlock new opportunities for growth in the country.

We are well-placed to bring in global financial investors who can contribute capital to fund the development of more solutions and assets that are also smarter and greener. We will leverage our strong track record in the development and operation of such assets to provide critical infrastructure and services to Vietnam.

In the real estate space, we continue to see many opportunities in Vietnam, a market where we have successfully established a quality portfolio spanning residential, office and retail properties. We are looking forward to the launch of Hanoi Centre, our upcoming retail development slated to open next year.

Keppel has also secured several EaaS contracts in Vietnam to design and retrofit the existing cooling systems of its clients’ developments to improve energy efficiency and asset performance, as well as is exploring with various Vietnamese partners to explore the implementation of other types of EaaS.

With over two decades of experience in designing, developing, and operating data centres, and a premier portfolio of 35 data centres across key data hubs in Asia-Pacific and Europe, Keppel is well-placed to offer our integrated data centre solutions to support Vietnam’s fast-growing digital economy.

Source: https://vir.com.vn/keppel-remains-steadfast-in-vietnamese-real-estate-market-122713.html

Up Next

Scatec closes sale of 39MW Dam Nai wind farm

Don't Miss

Real estate offers lucrative investment opportunities in 2025

Project

Real estate capital heading into suburban areas

Published

5 hours ago

March 12, 2025

Industrialzone.net

The shortage of affordable apartments in Ho Chi Minh City has led buyers with tight budgets to seek properties in neighbouring markets.

The real estate market in Ho Chi Minh City is facing a scarcity of land, while the cost of project development is continuing to rise. This has forced investors to carefully consider which product segments to focus on to ensure profits.

Real estate capital heading into suburban areas

Photo: baodautu.vn

Investors with land in strategic locations close to the city centre are prioritising the development of mid-range and high-end products to optimise financial outcomes.

As a result, buyers seeking affordable options are being forced to look elsewhere.

“The shortage of affordable apartments in Ho Chi Minh City has led buyers with limited finances to seek items in neighbourhoods like Binh Duong, Dong Nai, and Long An. In these areas, apartment prices hover at around $1,200-$1,600 per square metre, creating strong demand,” said Giang Huynh, head of research and S22M at Savills Ho Chi Minh City.

From another perspective, the average rental yield for apartments in Binh Duong is currently 4.7 per cent, well above the 3.7 per cent yield in Hanoi and 3.6 per cent in Ho Chi Minh City.

Dinh Minh Tuan, southern regional director of real estate trading platform Batdongsan.com.vn, shared that the high rental yield in Binh Duong is largely due to reasonably priced luxury apartments, with high rental prices and stable occupancy rates.

On average, a luxury apartment in Binh Duong can be rented for $400-$480 per month for a one-bedroom unit, and from $600-$800 for a two- to three-bedroom unit.

Meanwhile, in Ho Chi Minh City or Hanoi, apartments in the $1,800-$2,000 per square metre range can only be rented for around $280-$480 per month, depending on the number of bedrooms, not to mention the increasingly stiff competition in enticing tenants.

In response to the strong capital shift, real estate firms in Ho Chi Minh City’s suburban areas are accelerating legal procedures to launch new projects.

This trend reflects the investors’ agility and creates attractive opportunities for both homebuyers and investors in 2025.

Accordingly, Kim Oanh Group plans to launch a 27-hectare urban area in New Binh Duong City in the first quarter of 2025.

This will be the first project the company has collaborated on with Surbana Jurong, a partner from Singapore, under EDGE green standards.

The project features 1,656 townhouses and terraced houses, and 1,666 social apartments, priced from $28,000 per unit.

Major developer Phat Dat Real Estate Development Corporation plans to launch two major projects, Thuan An 1 and 2 in Binh Duong province, covering a total area of 4.46 ha.

The 1.8ha Thuan An 1 will provide 2,604 apartments and shophouses, while the 2.66ha Thuan An 2 will have 3,270 apartments and 16 townhouses. These projects are located on key roads.

Simultaneously, southern developer An Gia Group plans the launch of 3,000 apartments at The Gio Riverside and 76 shophouses in Di An city.

The three-hectare project, located on the provincial route DT16, offers nicely designed apartments with one to two bedrooms.

Regarding opportunities for homeownership, Phan Cong Chanh, an expert in real estate investment, noted that owning a home requires solid knowledge and time to raise financial resources.

For young people, buying a home immediately is a challenge due to limited finances.

Buyers can explore financial support packages and use leverage to shorten the time needed to purchase real estate. This needs to be accompanied by a reasonable plan to ensure long-term affordability.

“Overall, owning a home is not just a purchasing decision; it also requires a smart financial strategy. Whether choosing to buy immediately, rent, or invest in real estate in any segment, individuals must consider their financial conditions and personal plans carefully,” said Chanh.

Project

VinFast looks to long term with operational roadmap

Published

7 hours ago

March 12, 2025

Industrialzone.net

Carmaker VinFast aims to become a powerhouse in the electric vehicle market as it grapples with tougher competition abroad.

VinFast looks to long term with operational roadmap

The company wants to double EV sales when compared to last year’s figure

Potential investment from JTA Investment through an MoU between Vingroup and Qatar Investment Fund, which was unveiled last week, aligns perfectly with VinFast’s ambitious vision of scaling up production and sales in a competitive international market, the company said.

JTA Investment is exploring a potential equity investment of at least $1 billion in VinFast, the Nasdaq-listed EV manufacturer, as well as a strategic partnership aimed at supporting the company’s global expansion and technological development.

“This collaboration will unlock significant opportunities for Vingroup and its subsidiaries to drive technological, infrastructural, and sustainable economic advancement in Vietnam, while establishing a foundation for international expansion,” said Le Thi Thu Thuy, vice chairwoman of Vingroup.

Global electric vehicle (EV) competition is expected to get tougher as the demand for EVs is projected to increase further this year, but the outlook is being hindered by uncertainty surrounding tariffs and policy changes.

In 2025, S&P Global Mobility projects that 15.1 million battery EVs will be sold worldwide, a 30 per cent increase on last year. It is anticipated that 16.7 per cent of the light vehicle market will be made up of battery-based EVs.

S&P also reported that major unknowns await Chinese manufacturers BYD and Tesla in 2025 due to assumed changes to the US Inflation Reduction Act.

Last year, VinFast stated that it was delaying the opening of its North Carolina factory until 2028, which will allow the company to optimise its capital allocation and manage short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations.

The company is expanding its strategy in India, Indonesia, and the Philippines, where EV infrastructure is developing rapidly but competition from domestic brands is limited. Experts said that in order to sustain long-term growth, it needs to compete with Chinese manufacturers and prove its competitiveness beyond its home market.

VinFast is scheduled to open factories in Subang, West Java and in the southern Indian state of Tamil Nadu this year. The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market.

On February 28, VinFast and Motech Automotive Service Centres, through its franchisor and operator in the Philippines, signed an MoU on expanding the service network for VinFast’s EVs in the market. The agreement aims to meet the increasing demand for EVs among Filipino consumers, while affirming VinFast’s long-term commitment and determination to utilise green transformation across the region.

VinFast and Motech will collaborate to accredit over 60 Motech service workshops as approved VinFast service centres. In the Philippines, these service centres will have the authority to handle VinFast EV maintenance, warranties, and repairs. This year, VinFast intends to open over 100 similar service workshops throughout the Philippines.

In 2025, the company has set the ambitious target of doubling sales to around 200,000 EV globally after announcing impressive results in 2024, with 97,300 EVs sold globally, of which about 87,000 vehicles came from the domestic market.

Project

M&As in crucial sectors poised for rapid expansion

Published

9 hours ago

March 12, 2025

Industrialzone.net

Following the downturn, Vietnam’s merger and acquisition landscape is set to gain momentum in 2025, driven by spearhead industries from technology to manufacturing. Julien Curtet, partner of Index Partners, shared with VIR’s Thanh Van his insights into the overview and the prospect of the market.

How do you see Vietnam’s merger and acquisition (M&A) market affected by global market volatility?

M&As in crucial sectors poised for rapid expansion

Julien Curtet, partner of Index Partners

In 2024, global M&A activity rebounded, reaching approximately $3.5 trillion (a 15 per cent increase from 2023) with around 7,500 deals above $30 million. Corporate acquisitions rose by 12 per cent, and financial investor activity surged by 29 per cent, driven by private equity amid easing interest rates. Key sectors included technology, energy, financial services, and telecom.

Vietnam mirrored global trends with notable M&A activity in technology, energy, and industrial sectors, supported by a resilient macro and rising foreign investment.

In 2024, Vietnam’s M&A market experienced a downturn in transaction value, influenced by global economic uncertainties stemming from geopolitical tensions and currency fluctuations. However, deal volume reached around 160 transactions in the second half of 2024, marking a 25 per cent rise from the first half of 2024 and a 32 per cent jump from the second half of 2023, signalling a strong recovery trend and positive momentum for future growth. Some key deals in the second half of 2024 were Masan’s acquisition of an additional 7.1 per cent stake of VinCommerce from SK Group for $200 million, KIDO’s acquisition of Hung Vuong, Nvidia’s acquisition of VinBrain, and SK Group’s $300 million acquisition of Iscvina Manufacturing.

Mid-cap deals up to $25 million dominated Vietnam’s M&A market, accounting for just over half of total deal volume despite a 28 per cent drop in total transaction value. Mid-size transactions in the second half of the year included ADA’s acquisition of Customore and Elan’s $8.89 million acquisition of TMC Vietnam.

Could you shed light on some key drivers for the Vietnamese market in 2025 and beyond?

In 2025, it is set for strong growth, driven by key sectors such as infrastructure, technology, consumer, and manufacturing. Infrastructure will see a surge in investment, particularly in transportation and logistics, supported by government initiatives.

The technology sector is poised for rapid expansion, fuelled by favourable policies and accelerating digital transformation. Consumer spending is expected to rebound from a low base, signalling a recovery in the consumer sector.

Meanwhile, the manufacturing sector, which contributed over one-quarter of GDP in 2024, is projected to grow by 10 per cent in output, supported by new industrial zones and increased foreign investment.

The market is set to accelerate in the second half of 2025, fuelled by stable global interest rates and rising investor confidence.

Vietnam’s strong economic momentum, pro-investment policies, and booming sectors like technology, manufacturing, infrastructure, and recovery of consumer will drive deal activity, cementing its status as a key M&A hub in Southeast Asia.

How do foreign dealmakers approach strategies amidst global economic uncertainty, especially tariffs and new US policy?

Foreign dealmakers are reshaping their M&A strategies. Despite the challenges, Vietnam remains a key destination for cross-border investment, driven by its rapidly expanding technology, consumer, and manufacturing sectors.

Vietnam is rapidly advancing its technology sector, emerging as a significant player in the global digital landscape. Its commitment to technological innovation is evident through key partnerships, such as the collaboration with Nvidia to establish AI research and data centres in the country.

To further entice high-tech investments, the government offers substantial incentives, including up to four years of tax exemptions and a 50 per cent tax reduction for the subsequent nine years, as well as financial support from national sci-tech development funds.

Additionally, Vietnam’s consumer market is expected to recover in 2025, fuelled by a rising population, and increasing disposable incomes, boosting demand for goods and services. With consumer confidence rebounding and spending accelerating across sectors, Vietnam’s consumer market is regaining momentum as a vital driver of economic growth.

Vietnam is emerging as a manufacturing and logistics hub, attracting foreign investments due to its competitive labour costs (20–50 per cent lower than regional peers) and a 9.8 per cent increase in manufacturing output in 2024. An “anything but China” strategy is driving multinationals to shift production to Vietnam.

The country is also benefiting from major infrastructure projects, including the Long Thanh International Airport and deep-sea ports in Haiphong, are strengthening its logistics position, while expanding industrial areas and cross-border e-commerce fuel growth in both sectors.