Property giants Ecopark, CEO vie to build urban area on central Vietnam land plot

Ecopark and CEO, two major real estate developers in Vietnam, have proposed building a new urban area on the same plot of land in Khanh Hoa province’s Cam Lam district.

The central province’s Department of Planning and Investment (DPI) said it sent a document last Friday to relevant agencies to collect opinions on an investment proposal by Ecopark Group to invest in the Cam Lam new urban area.

Earlier, on September 17, the DPI had received a request from Ecopark for in-principle approval for the Cam Lam new urban area project spanning over 100 hectares, featuring row houses, villas, mixed-use apartments, commercial service areas, educational and sports facilities, cultural and entertainment facilities, public green spaces, and other services.

Interestingly, the proposed location for Ecopark’s project, Cam Hai Dong commune, is also where CEO Group has already proposed a mixed-use urban area project. That project is also under verification by the DPI.

CEO Group, based in Hanoi’s Nam Tu Liem district, was originally established as Vietnam Trading, Construction and Technology LLC in 2001. It became CEO Investment JSC in 2007 and CEO Group JSC in 2015.

As of May 8, 2024, its charter capital was over VND5.15 trillion ($207.33 million). Its stock is listed on the Hanoi Stock Exchange (HNX) as CEO. The group operates in many areas including commerce, real estate, leasing services, hospitality, tourism, urban management and education linked to labor export.

The group’s subsidiaries include CEO International LLC, CEO Construction JSC, CEO Service Development JSC, Dai Viet College, CEO Tourism JSC, and CEO Consulting LLC, all located in Hanoi.

Other member companies are Phu Quoc Investment and Development JSC, Phu Quoc Housing and Urban Development JSC, and CEO Hospitality LLC in the Mekong Delta province of Kien Giang; Van Don Tourism Investment and Development JSC in the northeastern province of Quang Ninh; and Nha Trang Investment and Development JSC in Khanh Hoa province.

In the first half of 2024, CEO earned revenues of more than VND681 billion ($27.42 million), almost unchanged year-on-year, while after-tax profit dropped 18% year-on-year to nearly VND50 billion ($2.01 million).

Ecopark Group, headquartered in the northern province of Hung Yen, was initially established as Vietnam Urban Development and Investment Corporation (Vihajico) in 2003 and was renamed Ecopark Group JSC in 2019.

It is well known for the 500-hectare Ecopark urban township developed in Hung Yen bordering Hanoi with an estimated investment capital of $8.2 billion.

Ecopark reported post-tax profits of VND529 billion ($21.28 million) in 2023, down 40% year-on-year. As of December 31, 2023, its shareholders’ equity had reached VND5.4 trillion ($217.26 million).

Under the 2010-2030 master plan for Khanh Hoa with vision until 2050, Cam Lam is to be developed into an axis of growth for Vietnam's south-central region, helping upgrade the province into a centrally-managed city.

By 2045, the Cam Lam new urban area is expected to cover 54,719 hectares, or the whole of Cam Lam district, excluding the Thuy Trieu lagoon.

The plan envisages a modern, world-class ecological urban area; a key hub for marine tourism, logistics and financial services; an international center for education, health, research and application of new technology; and an urban area with a high-quality living environment.

The new urban area is expected to have a population of about 320,000 by 2030 and 770,000 by 2045.