CapitaLand Development (CLD), the development arm of CapitaLand Group, has signed a memorandum of understanding with the Bac Giang Province people’s committee.  

It outlines their mutual interest in exploring the development of CLD’s first industrial park, logistics park and township development in Vietnam at a cost of US$1 billion (VND22.7 trillion). 

The signing of the MoU was witnessed by President Nguyen Xuan Phuc during his state visit to Singapore.  

The MoU marks one of the largest investments between a Singaporean company and the Vietnamese government.

At a meeting with Phuc on February 26, Wong Kan Seng, chairman of CapitaLand Group, and Jason Leow, CEO of CLD, provided an overview of CLD’s activities in Vietnam and its investment strategies and plans, and reiterated its long-term commitment to investing in the country.

Leow said: “At the meeting with President Phuc, CLD reiterated its commitment to being a long-term partner in Vietnam’s economic development. CLD’s master planning and urban development expertise and extensive local knowledge, puts us in a strong position to contribute to the next stage of Vietnam’s industrialisation and modernisation.

From left to right: Mr Jason Leow, CEO of CapitaLand Development and Mr Le Anh Duong, Chairman of the People's Committee of Bac Giang signed a Memorandum of Understanding for a US$1 billion investment in CLD's first industrial park, logistics park and township development in Vietnam

“Viet Nam is one of our core markets and we aim to accelerate our investment in the country over the next five years, deepening the significant presence we have established in Vietnam for almost three decades.”

Ronald Tay, CEO of CLD (Vietnam), said: “As President Phuc had invited CLD to consider investing in industrial developments in his previous capacity as the prime minister of Vietnam, we are especially pleased to have him witness this MoU exchange.

Mr Wong Kan Seng, Chairman of CapitaLand Group (pictured left) provided President Phuc with an overview of CLD’s activities in Vietnam, CLD’s investment strategy and plans for Vietnam. He also spoke with President Phuc on opportunities for CLD to further contribute to Vietnam’s development

“The investment opportunity will be CLD’s first industrial, logistics and township development in Vietnam.  

“Our proposed investment in Bac Giang for the ecological industrial park, modern logistics park and smart township over 400 hectares will support the creation of a dynamic supply chain network in Vietnam’s northern key economic region.  

“It will also potentially create over 20,000 new jobs and improve the standard of living for Bac Giang’s residents and workforce, uplifting the overall Bac Giang community.” 

US$1 billion multi-asset investment in Bac Giang

As part of the MoU, CLD will partner with the Bac Giang people’s committee to evaluate several greenfield sites totaling over 400 hectares across the province.  

This includes a township development along the Cau River as well as several industrial parks and logistics assets near the Viet Yen district.

The developments will be green certified with plans to obtain a Leadership in Energy and Environmental Design certificate from the U.S. Green Building Council.  

The developments will be sustainable and climate resilient while also creating green and blue spaces that promote community building and placemaking.

To reduce the developments’ carbon footprints, solar panels will be deployed and green mobility options such as cycling will be encouraged with well-designed sidewalks and bike paths provided.