Vinhomes subsidiary to build $1.15 bln urban area in Long An province

Green City Development JSC, a subsidiary of Vietnam's leading real estate developer Vinhomes, has been approved as the main investor for a VND28.2 trillion ($1.15 billion) new urban area project in Duc Hoa district, Long An province.

The Hau Nghia-Duc Hoa new urban area will cover nearly 200 hectares in Duc Hoa district’s Hau Nghia township and the communes of Duc Lap Thuong and Tan My, according to a decision signed by provincial Vice Chairman Huynh Van Son.

Green City will implement the project in six years from the date of investment approval. It will contribute VND4.2 trillion ($170.87 million) or 15% of the project’s total investment, while the remaining 85% (about VND24 trillion or $976.4 million) will be mobilized from other sources.

The project, which has a lifespan of 50 years, will feature villas, townhouses, apartments, resettlement land plots and social housing as well as technical and social infrastructure.

Green City was the only applicant after Long An province called on investors for the project.

Vinhomes holds a 99.88% stake in Green City, which is known as the investor of the Vinhomes Grand Park urban project in Thu Duc city, Ho Chi Minh City.

Vinhomes' consolidated net revenue, including revenue from its various activities, business cooperation contracts (BCCs) and real estate transfers, reached VND108.4 trillion ($4.41 billion) in the first nine months of this year, up 118% year-on-year.

The company's consolidated after-tax profit in the period exceeded its year plan, reaching VND32.4 trillion ($1.32 billion), up 62% a year-on-year.

As of September 30, Vinhomes' total assets and equity were valued at VND417 trillion ($16.97 billion) and VND181 trillion ($7.37 billion), up 15% and 22% respectively from the beginning of the year, cementing its position as one of the largest real estate developers in Vietnam.

Vinhomes, a subsidiary of Vingroup, is listed on the Ho Chi Minh Stock Exchange (HoSE) as VHM. It closed Friday at VND39,200 ($1.59), down 6.22%.

Long An is an manufacturing hub in southern Vietnam, together with HCMC, Binh Duong and Dong Nai province.