Kusto Group prepares for a new exciting chapter built on its successful endeavors in the emerging Vietnamese market.
Southeast Asia and Vietnam, in particular, have experienced a building boom over the last decade. Kusto Group, a diverse international business enterprise based in Singapore, identified Vietnam as a promising emerging market in 2005 and soon began investing in the country’s flourishing construction sector.
Vietnam: An Investment Destination in Southeast Asia
Last month more than 300 construction and development companies from around the world converged on Ho Chi Minh City for the annual VietBuild International Exhibition 2019. The theme of this year’s event was construction, industrial machinery and equipment and interior-exterior decoration. The event highlights the burgeoning industry in a country that has seen its economy undergo a period of rapid growth. With a strong economic forecast, the construction industry in Vietnam has never been so robust and healthy.
Figure 1: Construction in Vietnam building on past success
In the last ten years, the Vietnamese economy has become increasingly open and attractive to foreign investors. The country joined the World Trade Organization in 2017 and has continued efforts to liberalize its economy, making it easier for investors to do business in the country and transforming Vietnam into one of Southeast Asia’s biggest beneficiaries of foreign direct investment.
Forbes recently named Vietnam one of Asia’s hottest divestment destinations. The Vietnamese government reported that the country attracted over $19 billion in foreign direct investment commitments in 2018.
Kusto Group Forges a New Path
For Kusto Group, an early investor in the Vietnamese construction market, this forecast signals a new opportunity to capitalize on its success, which could prove to be a springboard to growth across the region.
Kusto Group’s roots are in the natural resources and agriculture sectors of Kazakhstan and the central Asian region. The company, started by a group of ambitious, progressive entrepreneurs under the guidance of visionary chairman Yerkin Tatishev, set its sights on building a global enterprise based on innovative practices and sustainable growth.
The company has expanded through strategic investments in foreign markets and the acquisition of leading producers in diverse industries from agriculture to construction and building materials. Through due diligence and a keen eye on the future, the company has sought out ‘strong companies, with bright and dedicated people, and a compelling vision’ to enhance its portfolio of successful international operations.
Raising Industry Standards
Kusto Group made a strategic decision to invest in the construction industry in Vietnam after identifying an anticipated building boom and a growing demand for high-quality building materials to support a rapidly expanding economy.
The company acquired one of the leading construction companies, Coteccons, and through its investments, Kusto was able to command a significant market share of the cement industry in Vietnam. Kusto not only set its sights on helping to facilitate a building boom in the country, but it also took steps to improve the quality of construction materials and overall building standards within the industry.
Its operations in Vietnam are a prime example of Kusto Group’s reform-minded business model. Dedication to employees, consumers and the environment through sustainable production measures have allowed the company to become an accomplished industry leader in Vietnam and in all the countries it operates around the globe.
Kusto Group Looks to the Future
As markets continue to mature and evolve, investors and business leaders must be willing to innovate and improve their operations. Kusto has made it a priority to diversify its interests in Vietnam, pursuing new real estate development opportunities.
The Diamond Island project has become a shining jewel for Kusto Group, and its completion marked one of the proudest achievements for the company in Vietnam. The luxury residential complex in Ho Chi Minh City boasts premium facilities, amenities and its prime location minutes from the city center make it ideal for those looking for a luxe residential experience in the city.
A thriving economy ignites an increase in demand for quality living solutions and through its endeavors, Kusto Group aspires to raise the standards and improve living conditions for the people of Vietnam.
Reflecting on its success in Vietnam, the company hopes to replicate this pattern of development in emerging economies across the region. The milestones they have achieved, including the Diamond Island development project, demonstrates that the company is ready to meet the challenges of creating and facilitating demand for construction services in new expanding markets.
