Hanoi says no to high-rise apartments on prime plot

A cultural, trade and service complex will be built by a Vingroup subsidiary on the plot of land that used to be Hanoi's biggest exhibition center, instead of the 10 high-rise apartment buildings originally planned.

Hanoi Vice Chairman Duong Duc Tuan disclosed the information when answering a question raised at a Thursday People’s Council meeting. He was asked why the 148-hectare plot of land at 149 Giang Vo street had stayed empty for so many years.

Tuan said that procedures are being completed so that work on the trade and service complex can begin next year.

The news caught public attention as the prime location was an iconic one with the largest exhibition center that hosted major events including international fairs and cultural events like concerts.

The latest move would help reduce traffic and population pressure in the area, which is about five kilometers from Hoan Kiem (Sword) Lake, the heart of Hanoi's central district of Hoan Kiem.

In mid-2016, Hanoi allowed Vietnam Exhibition Fair Center JSC, a subsidiary of Vingroup, to build an apartment, trade and service complex on 68,380 square meters, but it has remained an empty site since.

The People’s Committee then approved a 1/500 detail plan for ten 50-storey apartment buildings to be built on the site.

Then, in deference to public opinion and following the government’s direction, the committee cancelled its in-principle approval of the project in March 2019.

Tuan said that the multi-function complex will have hotels, office and retail space while ensuring relevant architectural and planning requirements are met.

Project investors have agreed to implement the project as soon as investment procedures are completed, he added.

Vietnam Exhibition Fair Center JSC, registered on the unlisted public company market (UPCom: trading code VEF), was formerly named Vietnam Exhibition Fair Center Ltd., with the state its sole owner. Following privatization in 2015, Vingroup, Vietnam's largest listed conglomerate by market capitalization, now holds the majority stake.

VEF is now the investor of two other big projects. One is a national exhibition fair center project in Dong Hoi and Xuan Canh communes, Dong Anh district, Hanoi. It is capitalized at more than $319 million, of this 15% comprises investor equity. Construction commenced in the fourth quarter of 2020 and is set to complete in the third quarter of 2024.

The other is a $831 million functional area in the South Thang Long Road urban project in Me Tri, Trung Van and Phu Do communes of Nam Tu Liem district, Hanoi, with 15% being investor equity.

VEF’s profit after tax grew 135% to $14.3 million in 2021.