CapitaLand committed to the long term

VIR talked with deputy CEO of CapitaLand Group, Olivier Lim, when he paid a visit to the new CapitaLand Vietnam office in The Vista.

How much has CapitaLand invested in Vietnam so far?

Our asset value in Vietnam is about $1.2 billion, focused on residential and serviced residency sectors. This includes $1 billion for residential investments, such as The Vista. The Vista is the first residential project in Vietnam that combines residential apartments with offices. The project was completed two years ago. 

In July 2013, CapitaLand Vietnam announced it was moving its office to The Vista, could you tell us why?

In July the company moved its office to The Vista, because this is one of our own projects and The Vista represents a symbol for CapitaLand in Vietnam. We moved to our own property to express our long-term presence in the country. The Vista is CapitaLand’s first project in Vietnam and is one of the largest developments in the prime residential area of Thao Dien-An Phu in Ho Chi Minh City’s District 2. The Vista is a mixed complex comprising of premium residential apartments, a shopping centre, serviced apartments and offices. CapitaLand is committed to long-term development in Vietnam and that’s why we moved the whole team to our new home in The Vista.

Another important factor is our people. The situation over the last two years has been challenging and I’ve been very impressed with our team in Vietnam. We have some Singaporean colleagues here but the team is mainly Vietnamese. Their morale is very high and they’re doing very well.

CapitaLand’s new offices at The Vista

Do you think CapitaLand Vietnam is a successful example of Singaporean investment in Vietnam?

This year marks 40 years of collaboration between Singapore and Vietnam. Singapore is the second largest investor in the country. The overall message is consistency and commitment to the relationship. I also think patience is very important, because our investment in Vietnam is not for the short term.

CapitaLand entered Vietnam in 1994 and has since established itself in the country with projects based mainly in Hanoi and Ho Chi Minh City. With almost 20 years of experience in the country, coupled with its wealth of real estate domain knowledge, product design and development capabilities, active capital management strategies and extensive market network to develop real estate products and services, CapitaLand is committed to being a long-term real estate developer in Vietnam.

The real estate market in Vietnam still faces challenging, can you tell us about CapitaLand’s strategies in the situation?

I think patience is very important, because our investment in Vietnam is not for the short term. CapitaLand is committed to being a long-term real estate developer in Vietnam. When building long-term business, we must be patient. The economic challenges over the last two years are, to me, temporary. And I see some light because positive action by the government and the State Bank of Vietnam are gradually bringing stability back to the economy. Inflation is now under control and interest rates have fallen in tandem, while the government takes steps to strengthen the banking system and the real estate market as a whole. All of these positive steps augur well for the real estate industry and will bring longer-term stability to the industry.

We have sold more units. In the first six months of this year, our sales rose more than ten-fold compared with last year. In the last four months, buyers have come to look at our projects. This is because confidence is returning and because they see that the quality is as good as the commitment, and us being able to provide buyers with a red, land use rights book is very important in Vietnam.