Sumitomo Forestry, Kumagai Gumi, NTT Urban Development
Joint participation in large-scale township development in Vietnam's Binh Duong Province- Contributing to carbon neutrality in Vietnam through sustainable urban development -

1.Project Overview

This project is a large-scale township development on a site of approximately 41 hectares, with approximately 1,200 low-rise condominium units and 5,500 high-rise condominium units. The total project cost is approximately 140 billion yen, and all plots are scheduled to be completed by 2034. Developed jointly by KOG and three Japanese companies - Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development- the project will capture housing demand not only from managers working in nearby industrial parks, but also from actual users such as commuters to Ho Chi Minh City.

The development site is located in Thuan An City, Binh Duong Province, approximately 25km northeast of central Ho Chi Minh City. The province has developed with a concentration of industrial parks and the entry of many foreign companies, making it a representative economic and industrial hub in southern Vietnam. The development site is approximately 45 minutes by car from central Ho Chi Minh City via the adjacent main road. In addition, construction of Ring Road 3, which will connect major economic zones in the south, is also underway, and further improvements in convenience are expected in the area.

KOG has a wide range of experience in developing condominiums in southern Vietnam and is actively developing environmentally friendly real estate. By combining Sumitomo Forestry's design capabilities and environmentally friendly building materials cultivated through its housing projects both domestically and internationally, Kumagai Gumi's large-scale construction and civil engineering know-how, and NTT Urban Development 's diverse real estate development experience both domestically and internationally and its know-how in the information and communications field as part of the NTT Group, KOG aims to create sustainable cities and contribute to carbon neutrality in Vietnam.

The development will be led by a joint venture between KOG and SKN GREEN DEVELOPMENT LTD. (SKN), which will be established by Sumitomo Forestry's wholly owned subsidiary Sumirin Vietnam Company Limited (SV), Kumagai Gumi, and NTT Urban Development 's wholly owned subsidiary NTT UD Asia Pte Ltd. This marks Sumitomo Forestry's second real estate development project with KOG and the first for Kumagai Gumi and NTT Urban Development.

2.Future outlook

[Sumitomo Forestry]

The Sumitomo Forestry Group is globally expanding its wood-based businesses, from forest management to the procurement and manufacturing of timber building materials, contract construction of wooden buildings, including single-family homes, real estate development, and wood biomass power generation. One of the basic policies of our medium-term management plan, Mission TREEING 2030 Phase 1, which runs through 2024, is to accelerate global expansion, with the aim of establishing a revenue base in Asia. Since 2012, the Group has been engaged in the distribution and manufacturing of timber and building materials in Vietnam. Furthermore, in 2015, we developed a condominium in Ho Chi Minh City, and in 2023, we participated in a low-rise condominium development project in Ba Ria-Vung Tau Province, a suburb of Ho Chi Minh City. Our expansion into Binh Duong Province marks our third residential development in the country. Going forward, we aim to continue expanding our business by accumulating experience and knowledge in the real estate development business in Vietnam, while also leveraging synergies between group companies to strengthen our revenue base.

[Kumagai Gumi]

In its Medium-Term Management Plan (FY2021-FY2023), Kumagai Gumi has set "evolution of construction-related businesses" as one of its business strategies, and is focusing on real estate development projects based on this strategy. Kumagai Gumi is participating in a solar power generation project in Vietnam as part of its renewable energy business, one of its priority areas, and is also considering offshore wind power generation. Through this project, Kumagai Gumi aims to accelerate its real estate development business, another priority area, and ensure stable earnings by diversifying its revenue sources. Furthermore, in line with Kumagai Gumi's ESG initiative policy, the company will contribute to the realization of sustainable communities in the real estate development investment field.

[NTT Urban Development]

As a member of NTT Urban Solutions Group, which handles the urban development business of the NTT Group, NTT Urban Development is tackling the various challenges facing local communities and promoting new urban development by making maximum use of the experience and know-how it has cultivated in the real estate business and the NTT Group's resources in ICT, energy, environmental technology, and other areas.
This project will be the third in Southeast Asia, following a housing development project in Binh Duong Province, Vietnam in 2020 and a housing development project in Cebu City, Philippines in 2024, and will be the first township project in which the company will participate. By accumulating township business know-how through this project, the company will aim to further expand its business in Southeast Asia, including the Philippines.

[Project Overview]

[Kim Oanh Group Overview]

[SKN Company Profile]

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