Kazakhstan’s Kusto, Vietnam builder Coteccons team up for $200 mln investment

Kazakhstan-headquartered multi-sector firm Kusto Group has entered into a partnership with Vietnamese builder Coteccons to invest up to $200 million in Vietnam.

Kusto will make the investment in phases from now until 2028 in a strategic manner that combines the strengths of both Kusto and Coteccons, the Kazakh group’s CFO, Alexandr Donov, said at the signing ceremony in Hanoi Wednesday.

The two sides will jointly invest in high technology, ecosystems for industrial real estate, expanded supply chains for construction-linked mechanical, electrical and other segments, construction materials (steel structures, aluminum and glass), precast concrete, infrastructure construction and social housing.

They will also look to promote green construction practices and research in high-tech construction, tapping Vietnamese engineering talent, Coteccons said in a statement.

Kusto Group’s business interests spans agriculture, oil and gas, construction and production of construction materials. Its annual revenues exceed $1 billion. It has operations in nine countries: Kazakhstan, Uzbekistan, Italy, Canada, the U.S., Israel, Singapore, Ukraine, and Vietnam.

The company's Vietnam representative office, located in Ho Chi Minh City, Vietnam’s southern economic hub, has been running for 15 years.

Its Vietnam investment portfolio covers real estate, construction, construction materials, transportation and logistics, retail and consumer goods.

Coteccons is a leading contractor in Vietnam with major clients including Lego, Vingroup, Viettel and VinFast.

Its CTD shares, listed on the Ho Chi Minh Stock Exchange, closed Wednesday down 3% at VND64,000 ($2.52) apiece.