Empowering Tomorrow: Kusto Group's Vision for Sustainable Growth in Vietnam

Author: Kanat Kopbayev, Co-Founder of Kusto Group

As a co-founders of Kusto Group, one of the leading diversified holdings originating from Kazakhstan, and someone who is helping define Kusto’s growth strategy in international markets, I have witnessed firsthand the transformative business climate in Southeast Asia, with Vietnam emerging as a significant economic player in the last decade. This region offers a compelling narrative of regional growth fueled by strategic innovation and resilient economic policies, making it an attractive arena for global investors and businesses, and one of the key reasons why Kusto Group made a decision to enter the market many years ago.

The allure of Southeast Asia, particularly Vietnam, is not without its complexities. As with every growing region, Southeast Asia presents a unique tapestry of opportunities tempered by challenges that demand nuanced understanding of the terrain and strategic foresight. For businesses looking to enter or expand in these markets, often described as emerging, the landscape is vibrant yet volatile, rich with potential but riddled with hurdles that can perplex even the most seasoned entrepreneurs.

One of the key challenges in Vietnam is navigating the vast regulatory environment, which has seen significant improvements in recent years, but remains a complex web that requires patience and local expertise to decode. The business culture in Vietnam is distinctly relationship-driven, which necessitates a deep and long-term commitment to building trust and understanding local nuances. Moreover, infrastructural challenges, though diminishing over the years, still pose significant hurdles, especially in areas poised for rapid industrial growth.

Understanding the local context and believing in Vietnam’s long-term growth story were precisely what motivated Kusto Group to enter the market - one of our first international expansions beyond Kazakhstan. Our strategic decision to invest in Southeast Asia stemmed from the recognition that, despite occasional volatility, the region's rapidly growing and developing populations would drive demand for high-quality construction and manufacturing. This, in turn, would reshape urban landscapes and create modern living spaces and industrial zones for generations to come.

Our projects in Vietnam exemplify this philosophy. Coteccons, in which Kusto Group holds a significant stake, played a key role in constructing the Vietnam LEGO factory - one of the largest in the world. This project showcases advanced manufacturing brought to life through a blend of international collaboration and local expertise, setting a benchmark for sustainable industrial developments tailored to local communities. Landmark 81, towering over Ho Chi Minh City's, further attests to our commitment to excellence, becoming a building that has forever changed the capital city’s skyline. To date, the group’s cumulative investment in Vietnam has exceeded $1 billion, including our capital Diamond Island project - a riverfront development offering 360-degree views of the Saigon and Giong Ong To rivers in the heart of District 2, Ho Chi Minh City – an investment totaling around $500 million. Beyond reshaping the city’s aesthetics, this project demonstrates the vast potential of high-rise construction when innovative techniques and effective project management are applied.

Kusto Vietnam invested in Vietnam since 2005 and has contributed to various success stories of market leaders in the country, from manufacturing to logistics. We specialize in providing growth capital to fast-growing businesses that can benefit from the team’s expertise and flexible approach. These entities have enabled us to engage more comprehensively with the local market together with local expertise, from residential developments to large-scale commercial projects. Each venture is undertaken with a vision to foster sustainable growth and contribute positively to Vietnam's urban landscape and growing economy.

Looking forward, the future trends and opportunities for Kusto Group in Vietnam and Southeast Asia are promising. The region's economic trajectory is poised to ascend, with increasing urbanization, a growing middle class, and a young, dynamic workforce. These factors collectively create fertile ground for sectors such as real estate, technology, and green construction to thrive.
Moreover, Vietnam's strategic position in global supply chains is strengthening, a trend accelerated by shifts in global trade dynamics. This evolution presents opportunities for Kusto Group to further innovate and invest in projects that meet the demands of a changing world, from eco-friendly building practices to the integration of technology in construction and property management, but also logistics and trade, opening new routes for Vietnam’s businesses to expand.

Doing business in Southeast Asia, especially in Vietnam, is an exciting yet challenging endeavor. The landscape is replete with opportunities that await businesses willing to invest the time and resources necessary to understand and adapt to the market. With thoughtful strategies and a commitment to excellence, foreign businesses like Kusto Group can thrive in this dynamic region through collaboration with local businesses, contributing to the local society and benefiting from its vibrant economic growth. As Kusto Group moves forward, it is imperative that we continue to share knowledge, foster collaboration, and build the bridges necessary for sustainable success in one of the world's most promising regions.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.