Frasers Property targets key projects in Vietnam
Frasers Property targets key projects in Vietnam
Vietnam’s real estate market has seen the first signs of resuming business after two years of hardship. Truong An Duong, general manager of Residential at Frasers Property Vietnam, talked with VIR’s Bich Ngoc about the company’s investment strategy and key projects in the Vietnamese market.
What is your current assessment of the investment environment in Vietnam and the potential of the market post-pandemic?
We have seen that the investment environment in Vietnam is more competitive and aggressive.
Firstly, the country remains a vital economic fundamental which is bringing solid competitive advantages internationally. A large population with a rapidly growing middle-income class and enormous labour force are pushing the domestic demand.
Secondly, it is the great efforts of the central government and grassroots levels, while the current legal system has evolved to become more transparent and will continue to be so.
What is more, the government is increasing its spending on infrastructure systems, and strong economic growth with well-controlled monetary policy is an excellent foundation for development of the real estate market.
Which areas are the main focus of Frasers Property, and how will you set out a comprehensive development strategy?
Frasers Property Group is well-diversified across asset class and geography. In Vietnam, Frasers Property Vietnam is developing four out of five sectors of the group – residential, industrial and logistics, commercial, and hospitality. We are also focusing on residential, industrial, and logistics segments with robust underlying demand.
As the cornerstone of the group’s strategy, sustainability significantly contributes to Frasers Property’s success. Green and responsible solutions complementing top-of-the-line amenities and a quality living environment are the unifying ideas at the core of the company so far.
Frasers Property’s strategic focus is relevant and for a smart and healthy building to be truly effective requires us to be conscious of both the hardware and the software. For the former, we set up buildings, design, physical construction, and management system and also choose the most advanced technology for our constructions. Regarding the latter, we are human-focused, improving our human resources and organisational capabilities.
For Frasers Property, technology is not an end-goal but it plays a fundamental role in connecting assets, people, and processes through data-driven insights, adopting digital and technology solutions to improve productivity, and leveraging data analytics to deliver great experiences for our customers and employees.
To keep ahead of the technology curve, we have been taking several steps to bolster our organisational response towards digitalisation, whether in our buildings, work processes, or even business model.
Innovation nowadays is the most significant factor for any business. As we try to develop solutions to challenges like sustainability, we encourage our teams to do so through innovation. At Frasers Property, we see innovation as changes that add value. We also adopt a long-term perspective and think of our buildings’ entire asset life cycle to inform our decisions on investing and managing these assets.
Last but not least, we are ensuring healthy and balanced work and community environments. To empower our employees and align the entire organisation with our focus on sustainability, we introduced a group-wide sustainability framework across all our markets. Environmental, social, and governance considerations are incorporated into every stage of our value chain.
Binh Duong Industrial Park will receive interest as an industrial and logistics hub for expanding multinational and leading national enterprises (Photo: Artist’s impression)
Frasers Property has expanded its business to industrial property development. What is the reason behind this?
Frasers Property Group has recorded around $9.3 billion in industrial and logistics assets under management across Singapore, Australia, Germany, UK, Thailand, and Vietnam.
We have been leveraging the group’s capabilities in the industrial segment and deep understanding of the Vietnamese market built through decades of in-market experience to extend our presence to the country’s industrial sector.
The strong effectiveness of implementing many free trade agreements and the increasing shift in global manufacturing supply chains have improved the demand for high-quality ready-built factories and logistics facilities in Vietnam.
Heading this investment flow, Frasers Property has expanded its business to the Vietnamese industrial property market with Binh Duong Industrial Park, the first company’s industrial property in Vietnam.
The southern province of Binh Duong is a rapidly growing industrial location for the southern key economic region, being established and mature, and is a well-known and popular location for domestic and foreign industrial players. As such, the logistics infrastructure and supporting service industries are well-established.
Given its proximity to Ho Chi Minh City, the province has quick access to a major seaport, an international airport, and it is a business services hub serving the metropolis.
Frasers Property Vietnam plans to increase the industrial space and logistics business in the next two years.
We will focus on the quality of ready-built and built-to-suit facilities following the sustainability strategy. We leverage good macroeconomic conditions and design master planning expertise to ensure our projects become perfect choices for investors. Furthermore, these facilities contribute to the local community’s wellbeing and a work-and-live balance environment with recreations and amenities that will fill the current market gap.
We believe that Binh Duong Industrial Park will receive interest as an industrial and logistic hub for expanding multi-national and leading national enterprises. It will mark Frasers Property Vietnam’s entry and expansion into the industrial segment, leveraging Vietnam’s emergence as a choice manufacturing destination.
How has Frasers Property been carrying out work to achieve its target in the Vietnamese market in the time ahead?
We strive to be a returns-driven company, and we have a purpose of doing good. We have a responsibility to create places that make a difference, opening the doors to meaningful experiences with lasting shared value bringing people, businesses, and communities together.
Our strategy emphasises a win-win solution where strategic partners can provide much flexibility and speed while implementing projects with risk-adjusted strategies.
We are strengthening platforms and building capabilities for sustainability through a framework driven by the three pillars of acting progressively, consuming responsibly, and focusing on people. A robust business platform is also a firm base to support portfolio resilience and take advantage of a positive and dynamic market.
We are also building future-ready capabilities, continuing investment in capabilities, technology, and sustainability as we are targeting carbon neutrality across our properties by 2050 and being green-certified for 80 per cent of our owned and managed assets to ensure greater energy efficiencies.
Apart from residential, offices, and industrial property, are there other areas of interest for Frasers Property?
We have completed the set-up of a multi-asset class development platform comprising international and local professionals with solid track records. We are continuously searching for long-term strategic local partnerships with the belief that our strong financial capabilities and development experience on both the international and local scene will optimise value for real estate projects in Vietnam as an integrated city development developer.
We are also interested in integrated township development. Leveraging our knowledge and capabilities across markets and property sectors, we’re working towards sustainability, aim to create places and realise lasting shared values to benefit everyone, contribute to the economic development of the local communities where we operate in.
