Dream City developers deny funds shortfall

The company (Viet Han) has big plans to develop the $1.5 billion Dream City project covering 2,069 hectares in Tam Nong district of Phu Tho province near Hanoi.

However, a local media outlet recently claimed that the company could not carry out the mammoth project because their charter capital was only $16.4 million and they were a very small realty enterprise with neither experience nor market prestige.

Viet Han’s chairman Dinh Truong Chinh responded that these claims were false as the company’s current charter capital stood at $84 million.

Chinh said that the company had gained the licence for the project and it was sure that all would be developed on schedule given its management capacity, support from local authorities and strong financial partners.  

“I am proud that we have enough, even excessive financial capacity to make the Dream City project come true,” said Chinh.

Viet Han has just signed cooperation agreements with a series of large domestic and international investors, who were attracted by the project’s potential.

The partners include SD Partner from Korea, Collier International from Britain, Dickinson Wright from the United States, Baunschlager from Germany and the Black Diamond from Singapore.

Last month, the Korean-backed Samsung Corporation sent a 21-member delegation led by vice president Kang Young Gil to Vietnam to work with Viet Han’s leaders on the possibility of investing in the project.

Korea-backed Shinhan bank has also committed to lend the company $500 million to develop the township.

“They realised that Dream City will return huge profits as it has a unique design, is set at a prime location and includes some components such as a golf course, an electronic gaming centre and a horse racing track, for which it is difficult to get investment certificates,” said Chinh.

Land clearance for the city’s first phase, including a 336 hectare golf course, is underway. The company has paid $2 million for Korean-backed Sojong Partners to design the course.

Hoang Dan Mac, chairman of Phu Tho People’s Committee has promised that the province would give its all to help Viet Han construct the project on schedule. Mac confirmed that a whole of 2,069 hectares would be handed over to the developer this December.

Dream City includes a 350ha resort, a 105ha entertainment park, and a 46ha sports area. The developer has also devoted 562ha to development of luxurious, eco-friendly villas and 152ha for office, commercial, financial and retail areas.

The project is 60 km far from Hanoi and 12 km west from Phu Tho province’s Viet Tri City.

When completed, Dream City is expected to serve up to 10,000 visitors daily.

Established in 2006, Viet Han is the developer of large-scale projects including the 12ha mixed-use development Castle Plaza in Hanoi, and the 92ha Long Dien Skypark urban project.