Sustainability in DNA of Keppel Vietnam's future urban development strategy

Sustainability in DNA of Keppel Vietnam's future urban development strategy

At the Sustainable Development Conference 2025 held on November 27 in Hanoi, Lee Leong Seng, head of property development in Vietnam at Keppel Ltd., spoke about the company's environmental, social, and governance (ESG) journey and its sustainable urban development directions. His insights confirm Keppel's unwavering commitment to placing sustainability at the core of all its operations.

Lee Leong Seng, head of property development, Vietnam, Real Estate, Keppel Ltd

Seng said that Keppel has always regarded ESG as a foundational pillar. “Sustainability is in Keppel's DNA,” he emphasised. However, translating this commitment into real-world projects involves overcoming various challenges in planning, design, and operations.

During the planning and design stages, Keppel must identify land plots that are both commercially viable and capable of accommodating green spaces and natural elements, a balance that is not always easy to achieve. “The biggest challenge is balancing economic value with environmental value,” Lee noted.

ESG principles are integrated from the earliest concept sketches. Every design must meet fundamental sustainability criteria before being further enhanced during detailed development and materials selection. However, green solutions typically involve higher upfront costs, which may lead to increased selling prices. And while most buyers appreciate environmentally friendly projects, some remain cautious about the additional cost.

“This challenge requires the collective effort of all stakeholders,” Lee said. He also believes that government support and appropriate incentive policies will help raise public awareness and encourage businesses to invest more confidently in green materials and sustainable solutions.

During the operational phase, Keppel ensures that all projects meet green building standards. Energy-saving equipment, smart cooling technologies, and renewable energy, including solar power in commercial buildings, have been widely adopted.

A key highlight of Keppel's operations strategy is the Energy-as-a-Service (EaaS) model, provided by the group's infrastructure division. This subscription-based model includes intelligent energy management systems, smart cooling solutions, and emission-reduction initiatives.

In Vietnam, Keppel's Operations Nerve Centre enables real-time monitoring of energy consumption, optimising building performance.

Thanks to EaaS, buildings can operate more efficiently, reduce energy use, and cut carbon emissions, while improving real estate asset value over time. Seng believes that expanding this sustainable operations model will inspire local businesses and help strengthen the green ecosystem.

"Keppel considers Vietnam one of its priority markets in its regional sustainable urban development strategy," Seng said, and pointed out three main reasons. First, Vietnam is a core market in Keppel's real estate portfolio, with numerous flagship projects in major cities.

Second, rapid urbanisation and a growing middle class are creating considerable demand for smart and sustainable urban solutions, an area where Keppel has strong expertise. "Vietnam's economy continues to grow positively. The expanding middle class is driving demand for high-quality urban products," he said.

Third, Vietnam's strong focus on sustainability, particularly its net-zero commitment, aligns perfectly with Keppel's direction. “At Keppel, sustainability is truly in our DNA,” Seng said.

The alignment between national policies and Keppel's vision creates significant opportunities to introduce sustainable infrastructure, clean energy, and green building solutions into the market.

Concluding his remarks, Seng shared a concise but powerful message reflecting Keppel's long-term commitment: “We grow with a long-term vision, creating safe, comfortable, and future-ready spaces.”

In Vietnam, Keppel aims to build resilient, prosperous cities that contribute to green growth and improve quality of life for generations. For investors, Keppel is committed to being a trusted partner delivering sustainable value. For residents, Keppel's developments are not just homes but “a SANCTUARY, a living space of quality today and sustainability for the future”.

VIR