Keppel: investing in Vietnam’s sustainable development

Keppel has been active in Vietnam for over 30 years. How would you describe the company’s journey in the country?

Vietnam is one of Keppel’s key markets. We entered the country more than three decades ago and have grown to become one of the largest foreign real estate investors in Vietnam, with 25 projects and a total registered capital of approximately $3.8 billion.

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.

In Vietnam, we are known for our quality residential developments, such as Villa Riviera, Estella Heights, 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 later this year.

As a global asset manager and operator, we are bringing in investors to fund the creation of high-quality projects through our quality investment platforms and asset portfolios. An 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 in several high-quality residential projects in Hanoi and Ho Chi Minh City.

Our deep operating capabilities extend beyond real estate and include infrastructure and connectivity solutions. In 2023, our Infrastructure Division introduced its energy-as-a-service solution to Vietnam. Our subscription-based 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.

We are also participating in Vietnam’s fast-growing digital economy. As a top data centre player with a portfolio of over 30 data centres across Asia-Pacific and Europe, Keppel is well-positioned to bring best-in-class technologies and operational excellence to Vietnam. These data centres serve as critical enablers of cloud computing, AI, and other digital services, driving productivity and competitiveness for Vietnamese businesses.

In a strategic move to deepen its presence in Vietnam’s tech sector, M1, a subsidiary of Keppel, acquired a 70 per cent stake in ADG National Investment and Technology Development Corporation, a prominent IT solutions provider based in Vietnam. The acquisition allows M1 to tap into new growth opportunities aligned with Vietnam’s digital transformation programme.

Sustainability is often talked about in broad terms. What does it mean specifically for Keppel in real estate design and planning?

For us, sustainability is part of our DNA. It shapes how we plan, design, and operate. We don’t see buildings as standalone structures, but as ecosystems where people, nature, and technology are integrated.

From the earliest planning stages, we consider how to leverage technology to improve sustainability performance of our projects. The decisions help us reduce energy use and environmental impact, while enhancing comfort and wellbeing.

For instance, Keppel is the first company in Vietnam to incorporate sustainable concrete solutions via CO2 mineralised concrete technology in The Infiniti, which enables the embodied carbon to be reduced at the construction stage. At Celesta Avenue, the latest phase of our Celesta City development, we implemented water-efficient drip irrigation systems with rain sensors and installed solar-powered lighting.

To date, nearly all of our Vietnam projects are Green Mark-certified by Singapore’s Building and Construction Authority (BCA). The Estella in Thu Duc of Ho Chi Minh City was the first in Vietnam to receive the Green Mark Gold Award in 2009.

More recently, Gladia by the Waters, our joint project with Khang Dien located along Vo Chi Cong street in Ho Chi Minh City, became the first in the country to achieve the provisional BCA Green Mark for Districts.

Between 2022 and 2024, our Green Mark-certified projects in Vietnam achieved an avoidance of 40,000 tonnes of carbon emissions. The developments collectively saved 68 million kWh of electricity, reducing costs by around $13.6 million.

We also focus on ongoing operational improvements, such as retrofitting air handling units, installing energy-efficient LED lighting with smart sensors, and incorporating solar energy solutions at our commercial property. Over the past three years, these solar panels have generated more than 125,000kWh of clean energy, delivering both environmental benefits and cost savings of around $20,000.

In today’s global context, corporate social responsibility has become an essential component of any organisation’s long-term growth strategy. What are some of Keppel’s more notable initiatives in this regard?

Keppel’s programmes focus on environmental protection, education, and supporting underprivileged communities. Since 2022, we’ve contributed over $280,000 to social initiatives in Vietnam, which includes support for communities impacted by Typhoon Yagi.

One of our key initiatives is the Living Well project, which provides clean water to drought-stricken areas in the Mekong Delta, benefitting about 88,000 people. We have also planted 3,000 trees in Dong Nai province and organised public campaigns like ‘R.I.S.E. to the Challenge’ to raise awareness on rising sea levels and the pressing need for climate action. To support digital learning, we launched the ‘Bytes for Future’ initiative in Tay Ninh province, donating 80 computers, air conditioners, and books to local secondary schools, benefitting over 800 students.

Across all these initiatives, our employees have volunteered over 8,200 hours over the past three years, reaching over 100,000 beneficiaries. These efforts reflect our long-term commitment to uplifting communities as we grow with Vietnam.

On the commercial side, Keppel has made a mark with developments like Saigon Centre. Can you share more about your strategy in this space?

Before 2020, there were relatively few high-end commercial developments in Ho Chi Minh City. Notwithstanding this, Keppel identified the growing demand for premium office and retail spaces, driven by Vietnam’s economic expansion, rising foreign direct investment, and the evolving needs of both international and local businesses.

As a long-term investor in Vietnam, we recognised the opportunity to further enhance Ho Chi Minh City’s cityscape by leveraging our international experience to continue bringing in high-quality and sustainable commercial developments.

Building on the success of the first phase of Saigon Centre in 1996, we expanded and completed phase 2 in 2017, which included a commercial hub, offering premium retail, office and hospitality spaces.

Today, Saigon Centre’s retail mall houses some 180 international and local tenants, including leading Japanese department store, Takashimaya, as the anchor tenant. Saigon Centre’s Grade A office towers are also the preferred business address for multinational corporations, banking and financial institutions, as well as government agencies.

Complementing this is Sedona Suites, a premier serviced apartment known for its top-tier hospitality and stunning city views, making it a top choice for business travellers and expatriates.

Beyond Saigon Centre, Keppel further strengthened its presence in the city’s commercial sector with Estella Place, our commercial development in Binh Trung ward.

We are now looking forward to the launch of Hanoi Centre, our upcoming retail development, later this year. We are also excited to move forward with the development of Saigon Centre Phase 3, a 42-storey sustainable tower that will include a 5-star hotel and 60,000sq.m of Grade A retail and office spaces, in Ho Chi Minh City.

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.

Keppel Ltd has divested its entire 42 per cent stake in South Rach Chiec City LLC (SRC), the developer of Palm City in Ho Chi Minh City, according to a statement released on April 1.

Keppel Ltd. signed MoUs on April 2 in Ho Chi Minh City with leading retail, interior design, and education partners to offer high-quality amenities at the developer's residential projects in Vietnam.