Singapore continues real estate expansion

Seck Yee Chung, partner, Baker McKenzie Vietnam

Singapore’s Prime Minister Lawrence Wong paid an official visit to Vietnam on March 25-26, in a visit that holds significant importance for both nations, with an aim to strengthen bilateral relations and explore new avenues for collaboration.

One notable piece of interest is the potential investment from Singapore to develop eco-industrial parks (IPs) in Vietnam, which is becoming an emerging trend in the industrial and economic development in Vietnam.

Vietnam has been making concerted efforts to encourage sustainable development and environmental protection through the implementation of a national strategy on green growth for this decade, as well as the commitment to net-zero by 2050.

Eco-IPs are a vital component of this strategy, as they integrate eco-friendly practices into industrial activities, a major contributor to environment erosion. Their development aims to minimise environmental impact, optimise resource use, and enhance economic efficiency.

The visit of Singapore’s prime minister, therefore, presents an excellent opportunity for Vietnam to attract investment from Singapore in this field, a nation renowned for its expertise in sustainable urban development and green technologies.

Singaporean investors can bring valuable experience and advanced technologies to Vietnam’s eco-IP projects. The collaboration between the two countries can support and facilitate the establishment of state-of-the-art complexes that adhere to international environmental standards, following the celebrated footsteps of the remarkable Vietnam-Singapore Industrial Parks (VSIP) facilities. Additionally, the transfer of knowledge and optimised practices can help Vietnam develop a robust framework for sustainable industrial growth.

It can be observed that Singaporean developers have made substantial investments in the Vietnamese market throughout the years, notably Sembcorp Industries, Frasers Property, Mapletree Investments, and more.

Sembcorp Industries, a key player in the development of IPs in Vietnam, has already made significant strides in boosting sustainable industrial practices. The VSIP model is a prime example of Sembcorp’s commitment to eco-friendly development. Sembcorp’s expertise in creating green and resilient industrial infrastructure can further bolster Vietnam’s efforts to develop eco-IPs.

Simultaneously, Frasers Property has also made notable contributions to Vietnam’s industrial landscape. The company focuses on creating sustainable and innovative industrial spaces that cater to the evolving needs of businesses. The company’s projects in Vietnam emphasise energy efficiency, waste management, and green building practices.

In 2024, the company finished the construction of Yen Phong 2C – RF Industrial Park in the northern province of Bac Ninh, which implemented the application of environmentally friendly building materials, maximising natural light to contribute to efficient energy use, while also helping to increase usage time and reduce impact on the surrounding environment.

As for Mapletree, although this investor mainly focuses on developing real estate projects, they have also been actively involved in the development of industrial and business parks in Vietnam.

An example is Mapletree Binh Duong Logistics Park, an 86-hectare complex located in the VSIP 2 in Binh Duong province, adjacent to Ho Chi Minh City. Mapletree is deployed for the logistics and supply chain needs of manufacturing facilities in neighbouring IPs. It includes warehouse areas that can be ready for lease, a customs centre, and is guaranteed security and isolation. In addition, it also has factories designed and built according to customer requirements.

As Vietnam continues to prioritise environmental protection and sustainable growth, the collaboration with Singaporean investors can bring about transformative changes. Eco-IPs are set to play a pivotal role in driving sustainable development and fostering a greener economy. Their development can not only draw in foreign investment but also encourage the development of green technologies, resource efficiency, and economic resilience. Vietnam’s industrial sector is therefore expected to be promising.

PM hosts official welcome ceremony for Singaporean counterpart Prime Minister Pham Minh Chinh hosted an official welcome ceremony for visiting Singaporean PM Lawrence Wong and his spouse at the Presidential Palace in Hanoi on March 26 morning.