Singapore's CapitaLand Investment eyes $110M investment in Vietnam industrial land

By Dat Nguyen   June 29, 2024 | 02:48 am PT
Singapore's CapitaLand Investment eyes $110M investment in Vietnam industrial land
Nhon Trach Industrial Park in Dong Nai Province, southern Vietnam, December 2021. Photo by VnExpress/Quynh Tran
Singapore-listed real asset manager plans to spend up to SGD150 million (US$110 million) on acquiring industrial land in Vietnam to meet rising demand.

The company expects to add $73-110 million worth of assets in Vietnam to its portfolio in the next two years, its CEO, Southeast Asia Investment, Patricia Goh told Nikkei Asia in an interview.

Chinese companies in the garment sector and South Korean electronics producers are looking to set up new factories in Vietnam, and therefore CapitaLand Investment is looking for land build new factories or buy existing industrial infrastructure to lease to these potential tenants, Goh said.

The company is also looking to expand its investment in Malaysia and Thailand.

Industrial land rents are expected to rise by 7% in the south and 9% in the north every year for the next three years, property consultancy CBRE has said in a report in April.

Demand from various industrial sectors and foreign businesses would boost rents in the segment across the country, it said.

SSI Securities’ SSI Research expected positive developments in the industrial land segment this year thanks to the sustained rise in foreign direct investment flows into Vietnam.

Several new industrial zones have been planned in the northern region in the next three years, it added.

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