CMIA, Surbana to develop US$1.1b food-tech township in Vietnam

CMIA, Surbana to develop US$1.1b food-tech township in Vietnam

SINGAPORE-BASED private equity firm CMIA Capital Partners will lead the investment in a 1,018-hectare mixed-use township in Ho Chi Minh City, Vietnam.

Urban, infrastructure and managed services consulting firm Surbana Jurong Group, a wholly-owned subsidiary of Temasek Holdings, will be the development manager of the project.

The value of the project is estimated at US$1.1 billion, CMIA said in a press statement on Thursday (Apr 14).

CMIA has inked a memorandum of understanding (MOU) with Ho Chi Minh City for the development, which will be located in the Trung An Commune of Cu Chi District.

When completed, the Ho Chi Minh City Agri Food-Tech Eco Township will serve as an integrated regional urban centre for Ho Chi Minh City.

It will focus on the food science and technology industry, including food processing and manufacturing, product development, quality assurance and quality control, research and regulation.

The township will be home to 100,000 residents, house a 200-hectare food science and technology industrial park, and contain recreational spaces and amenities. It is expected to generate revenues of about US$2 billion annually and create jobs for more than 20,000 employees, CMIA said in the press statement.

“Residents will be able to live, work and play, all within the township,” the private equity firm added.

CMIA chairman Lee Chong Min noted: “Vietnam has a strong and resilient economy and has been welcoming of foreign direct investments… We thank the leadership for providing the most favourable of conditions for our investment in this project.”

Nina Yang, chief executive officer of Surbana Jurong’s development management arm, SJ CityGlobal, said the township and industrial park are expected to enhance liveability and economic growth in Ho Chi Minh City.

Surbana Jurong is able to harness our unique experience and expertise in master development to plan, design and implement large-scale urbanisation projects,” she added. Some of these projects include the New Clark City in the Philippines and the Microsoft ZiZhu Campus in Shanghai.

Each regional urban centre within Ho Chi Minh City will have an industry focus, with the aim of productivity gains through economies of scale, enhanced innovation and resource optimisation, CMIA said.

Vietnam President Nguyen Xuan Phuc witnessed the MOU signing ceremony, which took place during a conference on investment promotion.

Source: Business Times