4:55:21 PM | 24/5/2011
Cuu Long Petro Urban Development and Investment Corporation (PVCL) was established in 2007 with founding shareholders being Ut Xi Aquatic Products Processing Corporation, PetroVietnam Finance Joint Stock Corporation (PVFC), and Refrigeration Electrical Engineering Corporation (REE). After a short time on the real estate market, PVCL has quickly gained a deserving market position after it embarked on the construction of 5A Urban Zone in Soc Trang City, turning an abandoned land into an attention-catching urban zone in Soc Trang City and in the Mekong Delta region. Reporter Quoc Hung interviews Mr Nguyen Trieu Dong, General Director of PVCL, on this progress.
As known, PVCL is the investor of 5A urban project in Soc Trang City. Could you briefly introduce this project?
PVCL is the investor of the 5A urban and resettlement zone located on Mac Dinh Chi Road, Ward 4, Soc Trang City. This 112.87-ha residential zone is a big project in Soc Trang province. The 5A urban area, located on the east of Soc Trang City - the capital of Soc Trang province, has all fundamental technical and social infrastructures like hospitals, schools, daycares, kindergartens and supermarkets. This work will provide accommodations for some 20,000 residents. Kicked off in November 2007, after three years, the project has completed basic technical infrastructures like road, water supply and electricity systems as scheduled. At present, over 700 households are dwelling in completed apartments. They are mainly residents resettled for the Maspero River embankment project in Soc Trang province and customers inside and outside the province.
5A Urban Zone perspective
What are your opinions about potential for real estate investors like PVCL to develop in Soc Trang City?
Soc Trang is a young developing city. In recent years (specifically from 2004 to present), many new residential areas have been built by different investors. But, they are mainly of small and medium scales and connected to existing residences. Operating results are different from investor to investor.
Currently, in Soc Trang province, the urbanisation will certainly lead to a higher demand for housing. The formation of a new urban area like 5A requires a long-term development strategy, powerful financial capacity and excellent human resource.
Soc Trang is still a young city with a low population density and a large land fund but residential zone and urban zone projects are developing relatively rapidly. Do you think this is overheating development?
The formation of new residential and urban areas is an inevitable development trend of Soc Trang City as economic development and natural population growth will give rise to housing demand. Especially, the recent upgrading of the Maspero river embankment and the expansion of Ly Thuong Kiet Road forced about 1,000 households to reallocate their residency. Besides, many other investment projects have also displaced the population, including Nguyen Hue Road and Soc Trang Market. The 5A urban zone gives priority to these people.
However, the mushrooming development of new residential areas cause an oversupply of housing and land and many investors with weaker capacities cannot compete, especially when the monetary policy is tightened to stem inflation and interest rates are rising but home prices do not increase accordingly.
What property segment has PVCL been focusing on?
The market segment we are focusing on is products for low and medium-income earners and resettled dwellers. 5A home prices are reasonable because the project is little affected by the volatility of the real estate market. Our payment mechanism is also very flexible. Customers settling immediate payment will be offer discounts or gifts. Customers settling the payment within one year will be offered free interest rates for the short money. Customers paying on instalments in 10 years do not need to pledge their assets as security. These approaches enable low-income customers to buy houses.
What is PVCL’s strategy for the upcoming time?
The strategy PVCL is pursuing is to become a leading light in construction and real estate fields in the Mekong Delta region.
The target of PVCL is to compete over other contractors in the region operating in the field new residential construction and advanced civil construction.