Keppel remains steadfast in Vietnamese real estate market
Keppel remains steadfast in Vietnamese real estate market
Keppel has made its mark as a global asset manager and operator in infrastructure, real estate, and connectivity. Its real estate president for Vietnam, Joseph Low, shares with VIR’s Quynh Chau the company’s development plan for 2025 and beyond.
What have been the highlights of Keppel’s activities in Vietnam thus far?
Vietnam is one of our key markets. Over three decades, Keppel has grown to become one of the largest foreign real estate investors in the country, with 25 projects and a total registered capital of approximately $3.8 billion.
Joseph Low, President, Real Estate (Vietnam), Keppel Ltd. |
Keppel’s real estate division is an innovative urban space solutions provider that leverages technology to deliver sustainable and customer-centric solutions that enrich people and communities. It is focused in the areas of sustainable urban renewal, senior living, urban living, retail and large-scale integrated developments.
In Vietnam, we are well known for our quality residential developments, such as Estella Heights, Celesta Rise, and Empire City, as well as Grade A commercial developments like Saigon Centre in Ho Chi Minh City. We are also strengthening our retail presence in Hanoi, and will launch the Hanoi Centre retail development this year.
We are bringing in investors to fund the creation of high-quality projects through our quality investment platforms and asset portfolios. A good example is the Keppel Vietnam Fund, our private fund which combines capital from Keppel and global institutional investors to co-invest in residential developments, commercial properties as well as mixed-use projects and townships in Vietnam. To date, the fund has invested alongside Keppel in several high-quality residential projects in Hanoi and Ho Chi Minh City.
Our deep operating capabilities extend beyond real estate and include infrastructure solutions. In 2023, our infrastructure division introduced an energy-as-a-service (EaaS) solution to Vietnam. Our subscription-based EaaS solution, which includes energy supply, cooling, decarbonisation and smart energy management, enables businesses and building owners to enjoy significant energy savings without having to make heavy upfront investments.
As Vietnam accelerates its plans to reach net-zero by 2050, we see compelling opportunities for us to offer more of our sustainability solutions and services in the country.
Keppel has consistently championed sustainability. Could you share some of your notable sustainability initiatives in Vietnam?
We are committed to making a positive impact through the three-fold approach of running our business responsibly, making sustainability our business through investing in and creating solutions for a sustainable future, and contributing to the community through volunteerism and philanthropy.
In Vietnam, we have integrated various innovative and sustainable initiatives into our operations to achieve meaningful environmental, social and governance outcomes for our stakeholders. For example, our projects are designed to meet high green standards and incorporate features such as low-carbon energy sources, including renewables, chemical-free cooling tower water management systems and environmentally friendly building materials.
We are also driving sustainable urban renewal (SUR) initiatives, where we leverage technologies to future-proof and extend the lifespan of older buildings. We believe that retrofitting existing assets can be a more sustainable, less costly and faster-to-market solution compared to demolition and rebuild. It also allows asset owners to update their buildings to be smarter, better connected, more sustainable and ultimately deliver higher returns to its owners.
A prime example is the implementation of solutions for Saigon Centre, Keppel’s flagship mixed-use project in central Ho Chi Minh City. The initiatives rolled out under SUR have achieved over 40 per cent energy savings since July 2023. Saigon Centre also generated over 166,000 kWh of renewable energy between 2021 and 2024 through its rooftop solar panels.
Bytes for Future helps equip young generations with the necessary tools to thrive in the digital era |
Meanwhile, Keppel’s CSR programmes focus on environmental protection, education and supporting underprivileged communities.
Since 2021, we have contributed over $560,000 to society through various meaningful initiatives. This includes a donation under SG Community Cares which supported communities impacted by Typhoon Yagi, and a $296,000 donation to support COVID-19 relief efforts.
One of our key CSR projects is the Living Well initiative, which provides clean water to areas in the Mekong Delta affected by drought, benefiting around 70,000 people. Keppel also carried out the R.I.S.E. to the Challenge campaign, a public outreach initiative to raise awareness about climate change, as well as planted 3,000 trees in Dong Nai province in support of Vietnam’s national programme that targets to plant one billion trees.
To enhance digital learning for students, we launched a new Bytes for Future initiative in Dong Khoi and Bien Gioi secondary schools in Tay Ninh province. Under the initiative, Keppel sponsored 80 computers and four air conditioners to enhance the learning environment for students at the schools, as well as donated books to the schools’ libraries. The initiative has benefitted over 800 students.
Over the past four years, Keppel’s employees have volunteered nearly 8,000 hours, supporting nearly 85,000 beneficiaries across various outreach activities. As we expand our footprint in Vietnam, we remain dedicated to sustainable development and creating a positive impact on local communities.
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Saigon Centre, Keppel’s flagship mixed-use development in Vietnam |
What are Keppel’s development plans in this country?
With Vietnam’s strong focus on sustainable development, we believe that Keppel’s solutions can help unlock new opportunities for growth in the country.
We are well-placed to bring in global financial investors who can contribute capital to fund the development of more solutions and assets that are also smarter and greener. We will leverage our strong track record in the development and operation of such assets to provide critical infrastructure and services to Vietnam.
In the real estate space, we continue to see many opportunities in Vietnam, a market where we have successfully established a quality portfolio spanning residential, office and retail properties. We are looking forward to the launch of Hanoi Centre, our upcoming retail development slated to open next year.
Keppel has also secured several EaaS contracts in Vietnam to design and retrofit the existing cooling systems of its clients’ developments to improve energy efficiency and asset performance, as well as is exploring with various Vietnamese partners to explore the implementation of other types of EaaS.
With over two decades of experience in designing, developing, and operating data centres, and a premier portfolio of 35 data centres across key data hubs in Asia-Pacific and Europe, Keppel is well-placed to offer our integrated data centre solutions to support Vietnam’s fast-growing digital economy.
