Kusto Group diversifies its business in Vietnam

Yerkin Tatishev, founder and chairman of Kusto Group

During your visit to Vietnam, you identified and reconfirmed the potential of the Vietnamese market. Could you please share your investment strategy and plan for the coming years?

Over the past 10 years, we have invested in different industries in Vietnam from cement to logistics and real estate. During that time, we also gained a lot of experience. The business results of the projects are different but in general, they are positive. Through this process, we have also built strong foundations for development in Vietnam such as a network of partners, friends, and a deep understanding of the local market.

The Vietnamese government is stepping up investment in infrastructure such as roads, airports and many others, in which private companies are actively participating. Investment in infrastructure will create a positive growth engine for Vietnam. The nation's infrastructure system is changing very quickly and I firmly believe that Vietnam will develop even faster over the next 10 years.

In addition, Vietnam has abundant, dynamic, and active human resources. Young entrepreneurs and start-ups are gradually participating more actively in economic development. In particular, Vietnam's economy is currently enjoying an impressive growth rate with inflation that is low from a global perspective. All of these are real strengths for macroeconomic stability and economic development.

Kusto Group has long-term investments in Kazakhstan including oil and gas, construction and building, construction materials, and others. The group is diversifying its activities across different segments such as retail, agriculture, energy, and education. Which fields will Kusto Group focus on in Vietnam?

Kusto started investing in various industries in Vietnam 10 years ago, from construction materials to logistics, building, and real estate.

It was crucial for us to build a solid foundation to be able to develop well in this market. This includes a system of partners, customers, and essential knowledge of the local market, which is considered one of Kusto's strengths to allow stable development in Vietnam.

In the coming time, we will continue to diversify industries and participate more deeply in the investment process in the Vietnamese market. For example, Kusto Home – a member company of Kusto Group operated in Vietnam – is currently developing about 300,000 square metres of floor space and we plan to increase this to one million in the near future. In addition, tourism real estate will also develop very strongly based on Vietnam's tourism development potential, and we will not pass on this field.

In particular, I am very excited to learn about the great plan of the Vietnamese government to build one million sq.m of social housing within the next seven years. From an investor's perspective, I find this an interesting opportunity for businesses in this sector – including key industries as well as those that support them. In the near future, we will see a significant change in the construction industry from techniques to materials.

Development infrastructure projects will change the face of Vietnam over the next 5-10 years. Along with that will be the change in real estate, social housing, and urban development, thereby promoting the development of many industries. Kusto Group wants to be a part of this growth.

The close relationship between Kusto Group and Coteccons has received lots of attention. Could you tell us more about this bond?

Kusto and Coteccons are two independent businesses. Kusto Group is a major shareholder with direct ownership of 17.6 per cent of the shares in Coteccons and is also a customer of this contractor.

In the coming time, the two sides aim to cooperate through infrastructure and social housing with the criteria of transparency and the harmonisation of interests.

Coteccons' size and position have improved since 2012 after Kusto spent $25 million on the purchase of 10.4 million shares.

In the near future, the two sides will implement many cooperation projects, such as the Ho Chi Minh-Moc Bai and the Ho Chi Minh-Trung Luong expressways. These are important projects, and as a contractor, Coteccons needed capital support from investors so it invited Kusto to participate. Later this year we will also announce an investment in a precast concrete technology unit.

During the 17 years of presence in Vietnam, Kusto Group has successfully performed more than 10 deals, with a total value of assets under management of over $1 billion. It is also the investor for the Diamond Island project, with the total capital of up to $500 million.

Kusto Home holds groundbreaking ceremony for Urban Green Kusto Home, the property brand of international multi-industry group Kusto Group, held a cooperation signing and ground-breaking ceremony for its latest project Urban Green in Thu Duc City.

Kusto Home and BIDV-Gia Dinh branch sign deal for the Urban Green project Kusto Home – the real estate brand of Kusto Group – held a signing ceremony of strategic cooperation with BIDV-Gia Dinh branch to implement financing support for the Urban Green project on July 7.