Novaland moves to resume $8 bln southern Vietnam project after planning approval

Vietnamese developer Novaland (HoSE: NVL) plans to restart a stalled residential sub-project within its $8 billion mega urban development in the southern province of Dong Nai, following key planning approvals.

Aqua City Co. Ltd., a Novaland subsidiary, has sought feedback on the environmental impact assessment for the 110-hectare residential project worth VND9 trillion ($341 million), part of the 305-hectare Aqua City development.

Construction of Aqua City began in 2017, with nearly 1,000 low-rise houses and partial infrastructure works completed before the project was suspended in 2021 over unresolved planning and social housing land allocation issues. The delay left hundreds of finished villas unsold and tied up bank credit lines worth trillions of dong (VND1 trillion = $37.86 million).

With zoning adjustments approved in June, the project now has a complete legal framework, clearing the way for work to resume. At full build-out by 2030, the site will feature more than 2,000 low-rise homes, 2,600 apartments, commercial space, schools, healthcare facilities, and a marina, accommodating around 16,600 residents.

Situated on the Dong Nai river opposite Vinhomes Grand Park, Aqua City is billed as the province’s largest real estate project. Novaland estimates the project could generate VND23 trillion ($871 million) in state budget contributions between 2025 and 2028, including VND500 billion in 2025.

In the first half of 2025, Novaland recorded consolidated revenue of VND3.72 trillion ($141.85 million) from sales and services.

Net revenue from property sales rose 81% year-on-year to nearly VND3.42 trillion ($130.41 million), driven by handovers at projects including NovaWorld Phan Thiet (Lam Dong province), Aqua City (Dong Nai province), NovaWorld Ho Tram, Sunrise Riverside, and Palm City (all in HCMC). Service revenue totaled VND291 billion ($11.1 million).

The company posted a consolidated post-tax loss of VND666 billion ($25.4 million), mainly due to foreign exchange losses and other non-core activities - a sharp improvement from the VND7.33 trillion ($279.56 million) loss in the same period last year.

NVL shares closed down 2.5% to VND15,600 ($0.6) each on Friday.

Binh Phuoc and Dong Nai provinces were recently merged to from the new Dong Nai province, which neighbors Lam Dong, Tay Ninh, Ho Chi Minh City, and Cambodia.