Sun Group-led consortium wins approval for $3.75 bln urban area project in HCMC

Ho Chi Minh City has approved a Sun Group-led consortium as the investor for a long-delayed urban project, paving the way for one of the city’s largest urban redevelopment projects with an estimated investment of VND98.71 trillion ($3.75 billion).

The city approved the investment policy and tapped a consortium comprising Sun Group, Sun Ha Long Co. Ltd., and Sun City Co. Ltd. to develop the Binh Quoi-Thanh Da urban area in Binh Quoi ward.

The development will cover nearly 424 hectares and is designed to accommodate about 54,000 residents.

According to the project’s environmental impact assessment, the project will include approximately 23,171 residential units. High-rise apartments will account for the bulk of supply, with 13,150 units, representing more than half of the total planned housing stock.

It will also feature 637 townhouses, 283 villas, and the renovation of 1,629 existing homes. In addition, a mixed-use complex of up to 40 stories near a future metro line will provide 880 apartments and 1,773 accommodation units.

The project allocates nearly 125,900 square meters of land for social housing, equivalent to more than 20% of residential land as required under Vietnamese regulations.

The area is expected to accommodate 5,867 social housing units, making it one of the largest social housing developments incorporated into a single urban project in HCMC in recent years.

The investor also plans to use around 3,775 of these apartments as resettlement housing, subject to approval by relevant authorities.

The complex requires the relocation of approximately 2,643 households.

Current resettlement plans include 725 land plots along Binh Quoi street, while the addition of apartment units would provide affected residents with more housing options during site clearance.

Around 31% of the project’s total area has been designated for social infrastructure, including schools, hospitals, and public facilities. Another 25% will be devoted to parks, green space, and water features.

The remaining land will accommodate commercial, cultural, sports, hospitality, office, and marina developments.

HCMC plans to revoke 4,866 land plots across nine neighborhoods in Binh Quoi ward for the project development. Compensation and land clearance are scheduled for completion before October this year.

Infrastructure works and resettlement areas are expected to be completed by the fourth quarter of 2027, with large-scale residential construction beginning in Q1/2028. The entire development is expected to take around 10 years to complete.

The Binh Quoi-Thanh Da new urban area was first planned in 1992 but has remained stalled for more than three decades because of repeated changes in investors and planning adjustments.

Before receiving approval, the Sun Group-led consortium was the only investor to submit a proposal under HCMC’s strategic investor selection mechanism.