The Keppel Group and Sovico Group, through their respective subsidiaries, have signed two Memoranda of Understanding (MOUs) to collaborate to explore the development and roll-out of energy and environmental solutions, as well as identify, develop, operate and manage smart and sustainable projects in Vietnam’s key gateway cities, starting with Ho Chi Minh City (HCMC) and Hanoi. The MOUs were signed today in the presence of H.E. Nguyễn Xuân Phúc, President of the Socialist Republic of Vietnam, who is on a state visit to Singapore.
Privately held Keppel Infrastructure Holdings through its wholly-owned subsidiary Keppel Energy Ventures, signed an MOU with Sovico Group to harness sustainability-related technologies and develop end-to-end sustainable energy solutions, which include renewables, electrification, energy efficiency as well as the treatment of domestic solid waste, in support of Vietnam’s transition to a green and carbon-neutral economy.
The parties will also collaborate on harnessing the vast renewable energy potential in Vietnam for the development of sustainable fuel for sectors like power, industrial, maritime transportation and aviation, where carbon emissions may be harder to abate. For the aviation sector, the sustainable fuel can be supplied to VietJet Air, which is majority owned by Sovico, for a start, and subsequently rolled out to other airlines. This synergistic development comes on the back of Keppel Infrastructure’s work to explore the feasibility of producing green ammonia in Australia for export to meet the rapidly growing demand for carbon-free energy. Green ammonia can be used as a direct feedstock in green energy generation, or as a hydrogen carrier to provide green hydrogen solutions.
Keppel Land, Keppel Urban Solutions, Sovico Group and Phu Long Real Estates Joint Stock Company (Phu Long), a member of Sovico Group, have signed an MOU to cooperate in urban development which covers collaboration on smart and sustainable projects across Vietnam and the provision of related urban solutions and services, including masterplanning and infrastructure planning, placemaking and township management services to create liveable spaces and digitally-connected communities, starting with Mailand Hanoi City. This strategic collaboration comes on the back of the binding heads of agreement entered into by Keppel Land Vietnam Properties, Keppel Vietnam Fund and its co-investor through jointly held special purpose vehicles, together with Phu Long and its subsidiary5, in relation to the acquisition of a 49% interest in three residential land plots, totalling 14.2 hectares, in Mailand Hanoi City, which was announced in January 2022.
According to statistics from the Ministry of Foreign Affairs of Vietnam, Singapore has become the largest foreign investor in Vietnam with 402 newly licensed projects and newly registered capital of US$11.4 billion since early 2020 to-date.
