Vingroup starts work on $35.2 bln Olympic Sports Urban Area on Hanoi outskirts

Vingroup (HoSE: VIC), Vietnam's leading private conglomerate, on Friday broke ground on its 9,171-hectare Olympic Sports Urban Area project in Hanoi, which is expected to become a new growth engine for the southern part of the capital in the next decade.

The event took place in the presence of Prime Minister Pham Minh Chinh, Hanoi's Party chief Nguyen Duy Ngoc, many other senior leaders, and Vingroup chairman Pham Nhat Vuong.

This is the largest investment among the 234 projects that commenced construction or were inaugurated/opened for technical traffic across the country on Friday to celebrate the 14th National Congress of the Communist Party of Vietnam.

The groundbreaking in Thuong Phuc commune marks a significant turning point in the planning of the capital city, creating one of the largest megacities in Vietnam which will span 11 communes (Dai Thanh, Ngoc Hoi, Nam Phu, Thuong Tin, Hong Van, Chuong Duong, Thuong Phuc, Binh Minh, Tam Hung, Thanh Oai, Dan Hoa), all on the outskirts of Hanoi.

With a total investment of up to VND925.65 trillion ($35.18 billion), the project is positioned as an integrated service-sports city.

The project's location is considered particularly strategic as it lies at the heart of key national transportation arteries such as the 3.5 and 4 ring roads, National Highway 1A, and the Phap Van-Cau Gie Expressway.

Its proximity to Ngoc Hoi station also opens up prospects for developing a modern Transport-Oriented Development (TOD) model, creating momentum for sustainable development of the southern gateway.

The centerpiece of the plan is the Dong Son Bronze Drum Stadium, built on a 73.3-hectare plot of land with a designed capacity of 135,000 seats.

According to the announcement, this will be a FIFA-standard stadium with the world's largest capacity and the world's largest automatic retractable roof system.

The design of the building is strongly symbolic of the nation, with architecture mimicking the Dong Son bronze drum motif, harmoniously combining Vietnamese cultural identity and advanced construction techniques.

The sports complex and stadium are expected to be completed in the second quarter of 2030, and the entire project is scheduled for 2035.

Beyond its record-breaking scale, the project is also a pioneer in technological and environmental standards. The Trong Dong Stadium integrates AI, allowing for pitch replacement in 6-10 hours, along with a smart seating system connected to 5G.

Green solutions are thoroughly implemented: a water collection and recycling system that saves 70% of clean water, and technologies to prevent heat and UV absorption, along with natural ventilation, optimizing energy efficiency.

Besides its function as a competition venue, the VVIP area is specially designed to diplomatic standards to welcome heads of state.

The Trong Dong Stadium sub-project is expected to be completed in August 2028, significantly contributing to enhancing Hanoi and Vietnam's position on the international sports and cultural map.

According to Vingroup's plan, the entire project is divided into four zones. Zone A is earmarked for a new urban area associated with the TOD (Transit-Oriented Development) model.

Zone B will see construction of a service-sports-urban area associated with the sports complex, with the highlight being Trong Dong Stadium. Zones C and D will accommodate service-sports-urban areas associated with the sports complex.

According to the investor's calculations, the population size of the Olympic Sports Urban Area project is approximately 751,000 people.

On the Ho Chi Minh Stock Exchange (HoSE), VIC shares closed Thursday at VND142,700 ($5.42) apiece.