LG sets sights on HCMC

A city official, who asked not to be named, said the South Korean firm has proposed a commercial-residential-office complex on 1.2 hectares of the 10-hectare September 23 Park, near Ben Thanh Market in District 1.
The source said other details about the Korean firm’s project were not available as it was still in the early stages.
According to the proposed plan, which the city government approved in principle last month, the park will include the LG-complex, Quach Thi Trang Square, a monument, a water music park, and a car park, bus station and subway terminal.
At a meeting with city authorities last week, municipal mayor Le Thanh Hai asked the Ho Chi Minh City Architects Association to finish the final draft of the plan as soon as possible so that it could be given official approval within the month.
Apart from this project, a source from the municipal department of communications and public works (DoCPW) revealed to Vietnam Investment Review last week that the South Korean company was also seeking the city’s permission to develop another two projects in the city.
The first is a new urban zone in the
outlying district of Nha Be, and the second is a road that would link Tan Son Nhat Airport with the outer beltway in the suburban district of Thu Duc to help ease traffic congestion around the international airport.
No details about the new urban zone were disclosed, but the source said the city government would submit a plan to the central government seeking approval for choosing a foreign firm as contractor for the road project.
While the contractor’s name has yet to be announced, LG Engineering & Construction has emerged as strong candidates, and has already met with the city government in August to discuss this project as well as several other infrastructure projects.
The new road would start from the airport and head east to Binh Loi, and then continue on to Thu Duc District. The DoCPW has been asked to supply all the relevant information required by the investor.
Up to now, the Nam Ky Khoi Nghia- Nguyen Van Troi streets are virtually the only routes to and from the airport and both suffer from constant traffic congestion.
“A lot needs to be done before the projects LG have put on the table can get off the ground,” a DoCPW official said.
“If licensed, these projects will be worth up to $500 million.”
Municipal mayor Le Thanh Hai confirmed that Ho Chi Minh City officials would provide support for foreign investors like LG to carry out investments, as the city has done for Korea National Housing Corporation (KNHC), which plans to develop a $900-million housing project down south.
KNHC is teaming up with Saigon Real Estate Corporation (Resco) to build 60,000 apartments for sale to low-income people in Ho Chi Minh City.
KNHC has opened a representative office to facilitate its involvement in the fast-growing local property market.