Sembcorp Industries U96 , Singapore Airlines (SIA) C6L and Keppel Land have signed memoranda of understanding (MOU) with their Vietnamese counterparts. The announcements were made separately by the three groups on Feb 10.
The announcement comes after the Ministry of Trade and Industry (MTI), on Feb 9, announced that Singapore and Vietnam have signed two MOUs, one on the Green-Digital Economic Partnership and another on the Economic and Trade Cooperation Workplan. The MOUs were signed by Dr Tan See Leng, the second minister for trade and industry. The MOU on the Green-Digital Economic Partnership was signed with Vietnam’s minister for planning and investment, Nguyen Chi Dung. The other MOU was signed with Vietnam’s minister of industry and trade Nguyen Hong Dien.
Sembcorp to collaborate to establish industrial parks in Vietnam
In a bourse filing, Sembcorp Industries says it has entered into two collaborations in sustainable urban development in Vietnam.
The first MOU was signed with Sembcorp’s long-standing partner, Becamex IDC Corporation, to co-establish five Vietnam Singapore Industrial Parks (VSIPs) in Vietnam. The parks are valued at a total of around US$1 billion ($1.3 billion).
The parks will feature decarbonisation solutions such as rooftop solar systems, solar farms and green-certified buildings. They are also envisioned to be smart and sustainable with low carbon footprint.
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In addition, the Vietnamese government presented Sembcorp and Becamex with an investment license to develop a 500-hectare VSIP in Nghe An province (park II). Nghe An is located in the northern central region of the country.
The license is an expansion of the 750-hectare VSIP Nghe An province (park I) that was established in 2015.
“This year marks the 50th anniversary of diplomatic relations and 10th year of Strategic Partnership between Singapore and Vietnam. We have been privileged to partner with the government and to serve as an enabler for Vietnam’s investment potential,” says Kelvin Teo, CEO of Sembcorp Development and the co-chairman of the VSIP Group.
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“Our commitment to Vietnam remains deep because the spirit of partnership has held strong. We look forward to the continued support of all parties as we grow VSIP,” he adds.
SIA to explore opportunities for codeshare arrangements with Vietnam Airlines
SIA and Vietnam Airlines have signed an MOU to booth the commercial collaboration between the two airlines. Both airlines have had a long partnership spanning over 20 years.
Both carriers will start by exploring opportunities for codeshare arrangements to “facilitate better connectivity” between Singapore and Vietnam. The arrangement could be expanded to include other destinations that SIA flies to.
The airlines will also explore other areas of commercial cooperation that could “offer more value and options to their customers”.
“We are pleased to build on this agreement with our trusted partner Singapore Airlines – one of the world’s leading carriers. Over many years, Singapore remains one of the most important markets for Vietnam Airlines. We hope to leverage our joint capabilities throughout many commercial fields of our business and therefore provide seamless experience to our valued customers,” says Le Hong Ha, Vietnam Airlines’ CEO.
“This MOU will also build a strong foundation for our future partnership and robust recovery after the pandemic,” he adds.
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On the MOU, SIA’s CEO Goh Choon Phong says, “Singapore Airlines and Vietnam Airlines have well-established networks, which can support one another to strengthen the connectivity between the two Asean countries and to key markets around the world. These win-win arrangements will offer more options and greater value for our customers, support economic growth, and bolster initiatives that facilitate tourism activities.”
Keppel Land to collaborate on sustainable development projects in Vietnam
Keppel Land and Vietnamese developer, the Khang Dien Group, have signed a MOU to collaborate on the development of residential projects as well as sustainable urban developments in Ho Chi Minh City.
The MOU was signed by Keppel Land’s wholly-owned subsidiary.
Louis Lim, the CEO of Keppel Land, said that Vietnam is a key market where the group sees “long-term growth potential” in and that the group is “committed” to expanding its presence in the country.
“We are pleased to collaborate with like-minded partners, such as the Khang Dien Group, to grow our business as we contribute to Vietnam’s sustainable development. We are confident that Keppel’s suite of sustainable urban space solutions, proprietary digital initiatives and access to third party funds for co-investments, will be a strong complement to the Khang Dien Group’s decades of experience and networks in the Vietnam real estate market,” Lim adds.
“We are delighted to collaborate with Keppel Land, a reputable Singaporean urban space solutions provider. We believe that Keppel Land's capabilities and experience in high-quality real estate development across the world as well as long-term investment commitment in Vietnam, along with Khang Dien’s deep understanding and principles of sustainable operations, will synergise to reaffirm both companies’ efforts to developing completed townships and contributing to the sustainable development of Ho Chi Minh City in particular, and Vietnam in general,” says Mai Tran Thanh Trang, chairwoman of the board of management of the Khang Dien Group.
As at 3.02pm, shares in Sembcorp, SIA and Keppel Corporation are trading at $3.72, $5.88 and $7.09 respectively.
