[HO CHI MINH CITY] CapitaLand Development (CLD), the development arm of Singapore&rsquo s CapitaLand Group, intends to grow its residential portfolio in Vietnam to 27,000 units by 2028.

 

This new five-year target is about 70 per cent higher than the current portfolio of about 16,000 units across 17 projects and includes 7,500 units in its two latest residential projects in Vietnam &ndash Sycamore, in the southern province of Binh Duong, and Lumi Hanoi in the capital Hanoi, said CLD in a news release on Monday (Mar 4).

 

The two projects &ndash the largest projects by CLD in Vietnam to date &ndash had their groundbreaking ceremonies last week, and the plan is for both to be launched in the second quarter of this year.

 

They have a combined gross development value of over S$2 billion. And to bring them to fruition, CLD said it partnered with United Overseas Australia Group on Sycamore, and entered into a joint venture with Mitsubishi Estate and Far East Organization on Lumi Hanoi.

 

CLD (Vietnam) chief executive Ronald Tay said in a statement that the company will step up its capital deployment in the country and expand the development pipeline through tie-ups with local and foreign partners.

 

He said CLD will focus on &ldquo well-located, large-scale projects&rdquo in key cities including Hanoi, Ho Chi Minh City and Binh Duong.

 

CLD chief executive Jonathan Yap said: &ldquo As Vietnam increasingly emphasises sustainable development, new opportunities that play to CLD&rsquo s strengths in sustainability have emerged.&rdquo

 

Besides Vietnam&rsquo s residential space, Yap added that CLD is also seeking new opportunities in the country&rsquo s commercial, industrial and logistics sectors, riding on Vietnam&rsquo s growing status as a major global manufacturing hub.

 

CLD, which been present in Vietnam for the last three decades, said in its release that its &ldquo continued confidence&rdquo in the housing market was supported by the country&rsquo s solid economic fundamentals, favourable demographics with a population of over 100 million, an expanding middle class and increasing urbanisation. 

 

In 2023, Vietnam&rsquo s GDP expanded at a rate of 5.05 per cent, making it one of the top-performing economies in the region.

 

Among CLD&rsquo s Vietnam projects n the last few years was the 88-unit Define in Ho Chi Minh City&rsquo s Thu Duc City, which was fully booked in less than two hours after the launch. Each unit went for over US$1 million, the firm noted.