Confronting the current shortage of accommodation in Ho Chi Minh City, many investors intend to invest in new urban areas in the city, including the project of a new urban area in western Ho Chi Minh City (West Saigon) invested by South Korea’s IDT Company. Vietnam Business Forum interviewed Mr Byung-Lak Hwang, Chairman of IDT Company, on this project.
Tell us how your company is preparing to invest in a new project called West Saigon New Urban Area?
In May, 2006, we sought investment license to develop West Saigon area in Binh Tan District, with total area of about 110 hectares. There will be a new residential area, with trade centres, hospitals, schools, five-star hotels, and five districts with high-rise blocks. In addition, there will be five underground car parks with total capacity of 3,000 parking places, expected to be the biggest underground parking lots in Vietnam and Southeast Asia. A park for local people’s entertainment will be built above the underground car parks.
Could you please talk about the special features of the project?
Currently, Ho Chi Minh City has some new urban areas such as Phu My Hung, but I think that Vietnam will also need more new residential areas in the west in the future. Our new project is expected to help reduce the population density and limit traffic jams. The new urban area will offer apartments which people in the city are in need of for accommodation, not simply for investment. They will be very convenient for those working at industrial parks from Long An, Dong Nai and Binh Duong provinces, and it would be easy to travel to Tan Son Nhat Airport.
Why has your company decided to invest in this project?
The infrastructure system in Vietnam has not been completed and this is a good opportunity for investors like us. Meanwhile, the economy of Vietnam has seen rather rapid growth, which helps improve the living standards of local people. Everyone wants to own convenient apartments. Therefore, the demand for accommodation in Vietnam keeps increasing.
South Korean investors are very experienced in constructing high-rise buildings. South Korean investors in Vietnam are currently taking the lead in FDI rankings, so we will have these very potential customers.
Evidence for success can be seen in our development of Green Hills office building at Quang Trung Software Park. We constructed this building in only one year, right on schedule, and 30 per cent of area has been built so far.
Policies of Vietnamese government for investment in general and foreign investment in particular have been adjusted to attract more and more foreign investors. This has helped create confidence for investors like us. As a result, we have not hesitated to contribute capital and experience to build urban areas and new buildings in Vietnam.
Who will be potential customers for your company?
Actually, there have been apartments for low-income residents and urban areas for high-income customers. Our project will provide accommodations with reasonable price for all medium-income customers, who are able to own apartments and enjoy the best quality services. Our company has strengths in healthcare and education services and office building construction, I think that we will maximize the benefits of residents, not only simply profits of our company.
Reported by Phan Thanh
Vietnamese
