Singapore-listed CapitaLand Investment plans to invest up to $110 million in Vietnam over the next two years to build or acquire industrial facilities. This move comes as manufacturers shift supply chains out of China.
Ho Chi Minh City, Vietnam
Expanding Presence in Southeast Asia
Backed by Temasek Holdings, CapitaLand aims to add $73 million to $110 million worth of assets in Vietnam, according to Patricia Goh, CEO for Southeast Asia investment. Similar investments are planned for Malaysia and Thailand, emphasizing Southeast Asia’s role in global supply chain diversification amid US-China trade tensions.
A rendering of CapitaLand Investment’s OMEGA 1 Bang Na automated storage facility in Thailand. The company plans to add industrial assets in the country, Malaysia and Vietnam. (Image courtesy of the company)
Strategic Move to Vietnam
Goh highlighted Vietnam, particularly Northern Vietnam, as a prime destination for Chinese textile, garment, and electronics producers relocating their operations. The company is actively seeking land and negotiating with industrial park owners to establish new factories or acquire existing infrastructure.
Broader Regional Ambitions
In Malaysia, CapitaLand plans to invest around SG$300 million in industrial, logistics, and healthcare assets. The company is also exploring opportunities in a special economic zone in Johor, developed jointly by Malaysian and Singaporean governments.
Challenges and Future Prospects
Despite challenges in China, where net profit fell 79% last year due to weaker rents, CapitaLand remains committed to growth in Southeast Asia. The firm plans to deploy SG$350 million in Thailand over the next two years, focusing on modernizing logistics infrastructure.
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