VIETNAM’S booming economy has led to a big demand for factory and office space – and that demand was expected to grow even bigger when the country joined the World Trade Organization (WTO) in January last year.
With WTO membership, Vietnam would have to open its door wider to foreign investors, who would need more room to do business and manufacture products – and would want better space.
Anticipating Vietnam’s move, Mapletree Investment invested US$400 million in 2008 – a year before Vietnam’s entry into the WTO – in its first business park there.
‘We saw the opportunity to take our expertise in creating vibrant integrated mixed-use developments for ‘work, live and play’ to Vietnam,’ said Ng Kiat, Mapletree’s chief executive officer there.
Mapletree Business City@Binh Duong, in south Vietnam, will house single storey ready-built facilities, multi-storey business park space and build-to-suit units.
‘It will cater to high tech, software and product development, backroom and middle-room processing, research and development and value-added manufacturing industries,’ Ms Ng said.
The park is being built near Ho Chi Minh City and established manufacturing hubs – and will have quick access to airports and seaports.
Mapletree has also moved to meet the housing aspirations of Vietnam’s large and growing middle class, by signing a joint-venture agreement with Saigon Co-op in April 2009 to build a mixed-use project with offices, shops and serviced apartments.
‘This US$350 million project will introduce a new integrated development model to Vietnam – the first multi-tenanted lifestyle destination mall,’ Ms Ng said.
The business park and integrated commercial development are only two of Mapletree’s projects in Vietnam.
The company first ventured there in 2005 when it set up Mapletree Logistics Centre in south Vietnam to meet the needs of multinational corporations that had set up shop there.
Today, Mapletree has two logistics facilities in Vietnam and is finalising the design for a third.
‘Vietnam has long-term growth potential as it is at a nascent stage of economic development,’ Ms Ng said.
‘Our biggest challenge (there) is to build up local relationships with the authorities, service providers, vendors and even local retailers. We also have to take time to build up the Mapletree brand name in this new market.’
Source: Business Times, 15 Apr 2010
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