GS E&C revives its dream of a $189 million township

A source from GS Engineering & Construction (GS E&C) told VIR that the company was finishing procedures aimed at jumpstarting the project within the year.

“Taking into consideration the lack of progress being made at the project site thus far, we are instating new procedures and working with consultants in order to re-commence construction as quickly as possible,” said the source, who wished not to be named.

Last week, property consultant CBRE Vietnam named GS Metrocity as one of the major projects of Ho Chi Minh City due to be implemented within the next two years.

Located in a 350-hectare site in the southern district’s Phuoc Kien and Nhon Duc communes, land clearance and compensation operations are nearing completion. The investor is currently making arrangements for residents of the area to be re-housed.

Since receiving its investment certificate in 2007, GS Metrocity has faced a number of delays due to difficulties in land clearance and compensation procedures, and a disagreement with local authorities on tax obligations. The investor is now also co-ordinating with local authorities to move a high-voltage electric system out of the project site.

GS E&C had originally planned to complete the setting up of infrastructure systems for the entire project within two years, from 2009 to 2010, and called on other sub-investors to develop smaller projects. However, after officially commencing work more than eight years ago, the project remains stymied in the land clearance stage.

Located about 10 kilometres south of downtown Ho Chi Minh City, GS Metrocity consists of a financial centre, shopping malls, and high-end office and apartment blocks. Key parts of the complex are the Linear area, The Centre Peninsula, the Gateway City, and Park City. Construction is set to finish within 10 to 15 years.

GS E&C is an arm of GS Group, one of South Korea’s top 10 conglomerates which has a deep presence in Vietnam via the group’s investments in the retail, recreation, and construction sectors.

In addition to GS Metrocity, in 2007, GS E&C obtained a license to build a 36-hole golf course near Ho Chi Minh City’s Cu Chi district. However, this project was taken over by CT Group in 2012.

The Korean construction group obtained another deal to build a motorway to connect the Tan Son Nhat International Airport with the outer beltway in Thu Duc district under the build-transfer (BT) model.

Meanwhile, GS Retail Co., a retail arm of GS Group, is building a $30 million trade complex on a 7-hectare plot in My Phuoc III Park, Binh Duong province.