CapitaLand Development (CLD), the development arm of CapitaLand Group, has signed a memorandum of understanding (MOU) with the People’s Committee of Bac Giang province, in Vietnam.

The MOU outlines the mutual interest between CLD and the provincial government to explore the development of CLD’s first industrial park, logistics park and township development in Vietnam.

The development has a total projected investment value of $1.3 billion or VND22.7 trillion.

As part of the MOU, CLD will partner with the committee to evaluate several greenfield sites totalling over 400 hectares across the Bac Giang province. This includes a township development along the Cau River as well as several industrial parks and logistics assets near the Viet Yen district, reveals CLD.

Furthermore, the developments are designed to be green certified with plans to obtain a Leadership in Energy and Environmental Design (LEED) certification by the US Green Building Council.

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“In the next five years, CLD plans to accelerate its growth, expanding its portfolio in asset classes such as data centres, logistics facilities as well as industrial and business parks. CLD will also seek master planning and urban development opportunities, while expanding its current residential portfolio,” reads the statement put out on Feb 25.

The exchange of the signed MOU was witnessed by Vietnam’s president Nguyen Xuan Phuc during his state visit to Singapore.

According to CLD, the MOU marks one of the largest investments made between a Singaporean company and the government of Vietnam during the state visit.

Jason Leow, CEO of CLD says, “CLD remains committed to being a long-term partner to Vietnam’s economic development. Our master planning and urban development expertise and extensive local knowledge, puts us in a strong position to contribute to the next stage of Vietnam’s industrialisation and modernisation.”

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“Vietnam is one of our core markets and we aim to accelerate our investment in the country over the next five years, deepening the significant presence we have established in Vietnam for almost three decades. We continue to see opportunities to scale up our investments in township developments, especially in the fast-growing secondary cities, and further expand our interests in data centres, logistics as well as industrial and business parks,” Leow adds.

In addition, the group seeks to “create quality spaces for the community to live, work and play through sustainable and innovative solutions to enrich their lives. Together with CapitaLand Hope Foundation 2, CLD will also continue to support local communities in Vietnam, particularly the development and education of vulnerable children in the country,” he continues.

Ronald Tay, CEO of CLD (Vietnam) said: “We look forward to working closely with the People’s Committee of Bac Giang province and contribute to the province’s urbanization through the development of sustainable and smart real estate projects.”

“The investment opportunity will be CLD’s first industrial, logistics and township development in Vietnam. Our proposed investment in Bac Giang for the ecological industrial park, modern logistics park and smart township over 400 hectares will support the creation of a dynamic supply chain network in Vietnam’s northern key economic region. It will also potentially create over 20,000 new jobs and improve the standard of living for Bac Giang’s residents and workforce, uplifting the overall Bac Giang community,” he adds.

Shares in CapitaLand Investment closed 9 cents higher or 2.48% up at $3.72 on Feb 25.

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