Ascott opens its 9th serviced residence in Vietnam
Ascott opens its 9th serviced residence in Vietnam
CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited, officially opened its ninth Somerset serviced residence in Haiphong last week, named Somerset Central TD. VIR’s Bich Ngoc talked with Mark Chan, Ascott’s country general manager for Vietnam, about his expectation for this property and Ascott’s strategy in Vietnam going forward.
Somerset Central TD Haiphong is the ninth Ascott property in Vietnam, what are its advantages over the other serviced apartment projects in the port city?
The 132-unit Somerset Haiphong is located on a prime urban area in the city, near the international airport, seaport, an industrial zone, and old town centre. It is only a five-minute drive away from the Cat Bi International Airport and a 10-minute drive from Haiphong Railway Station.
The building also provides the largest ever amount of facilities in Haiphong with retail and dining options in the adjoining TD Plaza, the popular Parkson Department Store, an eight-theatre Cineplex, and a hypermarket. This property is the first international branded serviced residence so far in Haiphong, therefore it has not got any equal competitor in this city.
Why did you choose Haiphong for your latest project?
We chose to invest in this property as we see great growth potential in Haiphong. It’s the 3rd largest city in Vietnam, and an integral part of the Hanoi-Haiphong-Quang Ninh economic growth triangle, which the local government has earmarked as a priority area for development. The city’s GDP is projected to grow by about 13.5 to 14 per cent over the period from 2010 to 2020. Haiphong was the second largest recipient of foreign direct investment (FDI) after Ho Chi Minh City in the first quarter of 2015, and after the city expands its industrial and export processing zones, there will be an influx of expatriates and business travellers, which will bring about a strong demand for quality accommodation.
Moreover, Haiphong now is home to more than 10 large global companies from among the world’s top 500, including Bridgestone, Fuji Xerox, GE, Nomura, JX Nippon Oil & Energy, LG Electronics, and others. We see major corporations increasing their presence in Haiphong, and see good potential for serviced residences in this city.
How important is Vietnam in Ascott’s development strategy?
Vietnam has always been a key focus country for Ascott aside from Singapore, China, and Europe. We envisage major corporations increasing their presence here. Vietnam has attracted a high level of FDI due to its high literacy rate and productive labour force. This has, in turn, created a strong demand for quality serviced residences.
After more than 20 years of operations in Vietnam, can you briefly outline the company’s achievements?
We are currently the largest international serviced residence owner-operator in Vietnam with more than 2,000 apartment units in 13 properties across the four major cities of Hanoi, Ho Chi Minh City, Haiphong, and Danang. We will open our first premier Ascott-branded property – the Ascott Waterfront Saigon in 2016, and will also introduce the Citadines’ Apart Hotel soon.
