Southern Vietnam industrial hub renews call for investment in $2.8 bln urban area

Dong Nai province, a major industrial hub in southern Vietnam, has renewed a call for investors in a VND72.29 trillion ($2.84 billion) urban area.

The 293-ha Hiep Hoa Urban Area, to be located in the gateway to Bien Hoa town, will comprise low-rise houses and high-rise apartments and is expected to accommodate 31,600 people, the municipal Department of Planning and Investment said in a statement.

The investors will be entitled to implement the project over 12 years in five phases from the date of getting in-principle approval. Constructions will account for 20% of the total area.

The amount is yet to include VND16.7 trillion ($656.3 million) in expenses for site clearance and resettlement.

Interested investors should apply by July 24, 2024.

The local government approved the project in March 2023 and first called for investment in January this year, but no investors showed up.

To ensure feasibility, the municipal Department of Planning and Investment proposed lowering requirements for potential investors. However, the provincial leadership kept the financial criterial unchanged. As such, the investor should have an owner’s equity of at least VND10,800 billion ($424.4 million).

Demand for housing in the province in on the rise thanks to infrastructure developments, with key projects such as the Long Thanh International Airport, Dau Giay-Phan Thiet Expressway, and a host of industrial parks.

Since the start of this year, Dong Nai has been calling for investment in four urban and tourism projects, totaling VND106,765 billion ($4.2 billion).