Vinhomes embarks on multi-billion dollar projects across Vietnam

July 18, 2023 | 11:30
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Vinhomes, a prominent Vietnamese property developer, has initiated an ambitious expansion drive with several large-scale urban projects, aiming to transform the residential landscape across various regions in Vietnam.
Vinhomes embarks on multi-billion dollar projects across Vietnam

During the week of July 10, Haiphong People's Committee approved Vinhomes, the property arm of Vingroup, as the sole investor in a new urban project.

This multi-faceted venture spans approximately 241 hectares, covering more than 107ha in Duong Kinh district and over 122ha in Kien Thuy district.

Vinhomes is planning an estimated investment of around $966.6 million, of which $900.4 million will be used for the project's implementation costs.

The investor's capital contribution stands at $145.1 million, equivalent to 15 per cent of the total investment. The mobilised capital sum of $821.5 million accounts for the remaining 85 per cent of the total.

In another development, only one investor – City Development JSC (a subsidiary of Vinhomes) – registered to execute the new Hau Nghia-Duc Hoa urban project as the investment call period came to an end.

The project, covering more than 197ha in Hau Nghia town, requires an estimated investment of approximately $1.18 billion, with execution costs of $1.05 billion.

Khanh Hoa People's Committee has approved a preliminary evaluation of the investor's capacity and experience in relation to another urban project near Cam Ranh Bay. The approved consortium – consisting of Cam Ranh Investment JSC, Vinhomes, and Vines Energy Solution JSC – has been acknowledged as the sole investor to meet the project's preliminary capacity and experience requirements.

This proposed urban project encompasses over 1,254ha in various communes and wards of Cam Ranh city. The project's preliminary total cost stands at about $3.55 billion and is expected to provide nearly 8,500 terraced houses, over 10,000 villas, and close to 20,000 social housing units (18,450 apartments and nearly 1,400 terraced houses). The project's timeline is set to run for five years from 2023 to 2027.

On July 12, Haiphong's Department of Planning and Investment also announced the bidding results for the construction of social housing (phase 1) within Dinh Vu-Cat Hai Economic Zone. The successful bidder was a consortium made up of Vinhomes and DHK Technology Development JSC.

The project, occupying over 28ha, has a total investment of over $250 million. Upon completion, it will include 27 blocks and over 4,000 apartments, covering approximately 110,000 square metres. In addition, there will be 284 terraced houses and villas on a 2.5-ha area, 2.3ha of commercial service buildings, and a school spanning 1.7ha.

In April, the province approved an investment policy and confirmed Muoi Cam Ranh JSC – a subsidiary of Vinhomes – as the investor to implement a social housing project in Cam Ranh city. This project spans nearly 88ha, with a building area of over 77ha and an approximate investment of $156.5 million.

Speaking at its 2023 AGM in April, Vinhomes' leadership announced that the company would continue to study and launch new smart, green, mega-urban projects in 2023 – depending on market conditions. They also stated that Vinhomes will complete the legal procedures to add projects in various provinces and cities across all regions, including Haiphong, Hung Yen, and Khanh Hoa.

As for its sales plans, leaders at Vinhomes shared at the AGM that the Vinhomes Ocean Park 2 project – with 12,600 low-rise units – has sold about 9,000 of them, while Vinhomes Ocean Park 3 – with 8,500 low-rise units – has sold around 2,000.

The company aims to sell all the units in these two projects in 2023-2024. It expects its 2023 sales revenue to increase to $3.33-3.75 billion.

In terms of business plans, Vinhomes has set a revenue target of $4.17 billion and net profit of $1.25 billion for 2023, a respective increase of 60.3 per cent and 2.9 per cent from the previous year. If achieved, it would be a new revenue record for the company.

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By Tri Lam

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