Korean firm earmarks $1.03bn for affordable apartments in Vietnam
Korean firm earmarks $1.03bn for affordable apartments in Vietnam
A Korean firm announced on May 8 that it will invest VND 20.6 trillion ($1.03 billion) to build over 20,000 affordable apartments in six cities and provinces in Vietnam.
Korean firm National Housing Organization (NHO)’s $1.03 billion plan is comprised of 14 projects with 25,000 low-cost units to be built on a total area of 230 hectares in Ho Chi Minh City, Hanoi, Da Nang City, Binh Duong Province, Quang Ngai Province, and An Giang Province.
Among the NHO projects, the two biggest plans are the 79 hectare, VND4 trillion ($200 million) urban area complex in HCMC’s Binh Chanh District and the 51 hectare An Phu Sinh urban area in central Quang Ngai Province.
Lawrence Tham, chairman of NHO, asserted that the firm will provide around 100,000 apartments to the market within the next ten years as already committed with the Vietnamese Ministry of Construction.
“We focus on building affordable housing at a price of around VND 9 million ($450) per meter to meet the demand of local buyers. For instance, one of our low-cost apartment projects, the First Home development in HCMC’s District 12, is expected to be delivered in 2015,” he added.
Speaking on the potential development of affordable housing in Vietnam, Kim Kyoo Chul, a representative of NHO, said that many big real estate investors are interested in the country’s market as most of the population is young and thereby more likely to wish to purchase cheap apartments.
The firm also received an investment license for building 1,200 new apartments with a total registered capital of over VND1 trillion ($50 million) in the southern province of Binh Duong at the inauguration ceremony of its administrative center held on February 20.
NHO is a joint venture between local TAG Joint Stock Company and NIBC Investment Company Limited from South Korea, mainly constructing apartments for low-income customers in Vietnam.
In 2014, the firm plans to break ground on several quality affordable housing projects in An Giang Province, Binh Duong Province, HCMC, and Hanoi. It also expects to provide the market with around 2,000 apartments by year-end.
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