Well-positioned to capture growth opportunities in Vietnam

February 05, 2024 | 13:22
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The global operating environment was challenging in 2023, with geopolitical conflicts, slow global growth, high interest rates, and extreme climate events. The Vietnamese economy, including its domestic real estate market, was not immune to these challenges.

Nonetheless, the underlying fundamentals of Vietnam’s economy remain strong. Real estate ranked second in the list of industries attracting foreign direct investments in 2023.

Well-positioned to capture growth opportunities in Vietnam
Joseph Low, President, Real Estate (Vietnam), Keppel Ltd.

As a global asset manager and operator, Keppel is well-positioned to capture growth opportunities in Vietnam. Over the years, we have formed many rewarding partnerships and grown with established local players, such as Khang Dien and Phu Long, who contribute their wealth of experience and networks.

Correspondingly, Keppel’s suite of quality sustainability solutions, international brand name, and access to third-party funds for co-investments are a good complement to our local partners’ strengths. We are confident that we can continue to build on these win-win relationships with local partners to turn challenges into opportunities in Vietnam.

In recognition of our commitment to providing high quality developments, nurturing the community where we operate and contributing to the sustainable development of Vietnam, we are heartened to have been named one of 2023’s best workplaces in Asia by Great Place to Work, taken part at the Top 50 Corporate Sustainability Awards, as well as being named regional winner in the Best Commercial Developer category at the PropertyGuru Asia Property Awards last year.

Looking ahead, we see many growth opportunities in Vietnam for the sustainability solutions that Keppel provides. For example, we have identified potential pipeline assets for the Keppel Vietnam Fund, our private fund which combines capital from Keppel and global institutional investors to invest alongside us in real estate projects, with a focus on Ho Chi Minh City and Hanoi.

Within the real estate sector, Keppel is driving a sustainable urban renewal initiative, bringing people, AI-driven technology, and processes together to bolster the efficiency, sustainability performance, and valuation of both new and aged commercial buildings.

A sizeable share of real estate development over the next decade is expected to be based on retrofitting and repurposing existing buildings, which are greener, less costly and faster than new construction, and contribute to the circular economy. By incorporating smart and sustainable features into retrofitted buildings, we can also help enhance the assets’ performance and value. We believe that this initiative is a compelling solution that can contribute to Vietnam’s journey to net-zero.

Beyond real estate, we also see opportunities in the areas of infrastructure solutions. In 2023, we announced up to $70 million of energy-as-a-service deals were made, further demonstrating market adoption of our business model in Vietnam.

Our subscription-based service solution in Vietnam includes energy supply, cooling, decarbonisation, and smart energy management. These services are complemented by real-time remote monitoring and optimisation of energy assets at our newly opened, state-of-the-art intelligent operations nerve centre in Keppel’s integrated township in Thu Duc of Ho Chi Minh City. We look forward to growing further with Vietnam and contributing to its sustainable development as a global asset manager and operator.

Keppel Land’s growth over three decades in Vietnam Keppel Land nurtures local communities in Vietnam Further amendments likely to help real estate recovery

By Joseph Low

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