What can you tell us about CapitaLand Development (CLD)’s business strategy and development plans in Vietnam?

With experience from operating in Vietnam for nearly three decades, we are attuned to market demand for well-located and well-designed homes. Our reputation and real estate expertise in development continue to attract discerning homeowners around the country.

Over the next five years, we target more than doubling our capital allocation, by approximately S$2 billion ($1.43 billion), in new investments such as data centers,  logistics facilities, and industrial and business parks. We will also seek master planning and urban development opportunities in up-and-coming cities and provinces while expanding our existing residential portfolio.

Our recent investment in southern Binh Duong province, with our first industrial park, logistics park, and township development in the country with total projected investment of $1 billion, and in northern Bac Giang province, with our first large-scale residential project in the country with projected investment of approximately $807 million, marks our initial expansions outside of the Tier 1 cities of Ho Chi Minh City and Hanoi.

Following our recent highly sought-after residential developments, DEFINE in Ho Chi Minh City and Heritage West Lake in Hanoi, we have introduced our latest luxury residential development, ZENITY, in Ho Chi Minh City. With a prime location in District 1, the 198-unit ZENITY offers a wide selection of fully-furnished units, from two- to three-bedroom apartments, as well as premium duplex and penthouse units, enabling residents to move-in easily upon handover. Sales at ZENITY are expected to be launched in the third quarter.

With more than 25 years of experience in Vietnam, how do you view its prospects and potential? 

Vietnam is one of CLD’s core markets, and we hold a long-term view of our business in the country. Vietnam also remains one of the fastest-growing countries in Southeast Asia. The World Bank has forecasted annual growth of 6.5-7 per cent from 2022 onwards. Leveraging on positive macro trends, including robust economic growth driven by rapid urbanization, industrialization, and young demographics, we are embarking on larger-scale residential projects and making forays into industrial and urban developments. We are also exploring expansions into up-and-coming cities and provinces surrounding Hanoi and Ho Chi Minh City, such as Bac Giang, Bac Ninh, Hung Yen, Hai Phong, Binh Duong, Dong Nai, and Long An.

What are the current investment trends in the real estate sector and how are they implemented at CLD?

Covid-19 disrupted traditional supply chains around the world, and this presents a unique opportunity for CLD to invest in new asset classes and expand outside of Tier 1 cities, where we have a strong presence.

Demand for wellness lifestyle real estate and communities is rapidly accelerating post-pandemic. Green real estate projects, focusing on utilities, human health, and harmony with the living environment, are becoming the leading choice in the market. In addition, the rising class of affluent people and entrepreneurs, the growing middle class, and evolving lifestyles among a young and growing population play key roles in setting the benchmark for high-end property development and consumption.

Industrial real estate is also seeing growth, driven by an influx of FDI into Vietnam, which reached more than $14 billion in the first half of 2022, a series of signed free trade agreements, and a supply chain shift to the country by major manufacturers. E-commerce continues to hit new heights as consumers changed their shopping habits during and after Covid-19, which in turn creates major opportunities in logistics services and factory and warehousing services.

Vietnam remains one of CapitaLand’s core markets given its robust economic growth. Based on our experience operating diversified assets globally and strong track record in Vietnam for about 30 years, we are focusing more on in-demand and high-growth sectors such as urban developments, logistics, business parks, and quality commercial assets with strong attributes in key gateway cities and up-and-coming cities and provinces.

What are CLD’s commitments to sustainable development and the green economy?

CLD places sustainability at the core of what it does. As a responsible real estate company, we contribute to the environment and social well-being of the communities where we operate, as this delivers long-term economic value to our stakeholders. Guided by CapitaLand's 2030 Sustainability Master Plan, CLD consistently embeds environmental considerations into every stage of the real estate life-cycle, from investment to development and operations.

CLD’s sustainability efforts in Vietnam have been proven through completed projects such as Feliz en Vista and Vista Verde in Ho Chi Minh City and Seasons Avenue in Hanoi, which have applied green building codes in design and construction and were conferred Singapore’s Building and Construction Authority’s (BCA) Green Mark Gold award.

One of the criteria in sustainable development is corporate culture. CLD has been nurturing human values through building its corporate culture, company image, and people. Can you tell us more about CLD's efforts to build its corporate culture?

At CLD, we believe that our company is only as extraordinary as our people. People are the ones who contribute greatly to a company’s culture and its success, and this is why we focus on building a high-performing organization with a Learning, Progressive, and Fun culture to attract and retain talent, motivate performance, and build cohesion. Our culture is shaped by the Group’s core values, comprising a Winning Mindset, Enterprise, Respect, and Integrity.

Along with building a strong workforce, CLD recognizes that its long-term success is closely intertwined with the health and prosperity of the communities in which it operates. Every year, CapitaLand Group allocates up to 0.5 per cent of operating net profit to CapitaLand Hope Foundation, to promote the social growth and development of vulnerable children with respect to their education, healthcare, and shelter needs.

We have also set up paid leave schemes and created opportunities for our employees, to not only give back to the community but also to give them a sense of purpose at our company. To date, we have donated funds to build four CapitaLand Hope Schools for vulnerable children in Phu Tho and Hung Yen provinces in the north and Long An province in the Mekong Delta.

CLD is committed to creating a valuable workplace for all employees as we realize our vision of being a leading global enterprise that enriches people and communities through high-quality real estate products and services. We will continue to embrace diversity and inclusivity, hiring and developing a strong pool of highly-talented individuals so we can all grow together in a sustainable manner.

What is the philosophy behind building an effective workforce and working environment?

As CLD continues to grow, building a unique corporate culture through providing learning and growth opportunities to all employees and a workplace where people feel empowered and have fun is crucial in differentiating ourselves in the market. Besides internal talent identification and development programmes, we have embarked on an external talent mapping exercise for key leadership positions as part of succession planning, and are developing high-performing people and teams through rewarding opportunities.