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Infrastructural factors have been an obstacle to Thu Thiem Urban Area for many years
Photo: Le Toan
Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said Thu Thiem remained largely unattractive to foreign developers due to the largely non-existent infrastructure.
“Infrastructure is obviously needed to attract investors,” Chau said.
Twenty years have passed since Thu Thiem New Urban Area received prime ministerial approval, but while the site is beginning to see large developments, its infrastructure has been largely ignored.
In addition to Thu Thiem Bridge 1 and the tunnel under the Saigon River which have connected the area with the centre of Ho Chi Minh City, the municipal People’s Committee last month agreed a build-transfer (BT) contract with an investor for constructing four roads and 12 bridges in the Thu Thiem New Urban Area in District 2 worth $569.4 million.
The four roads will be constructed by Dai Quang Minh Real Estate Investment Joint Stock Company.
Upon completion, these routes will play a significant role in the development of the new urban area, linking it with Thu Thiem Bridge, Vo Van Kiet Highway and the Saigon River Tunnel.
In addition, the city authorities and the company also signed another BT contract for a 9-hectare central square and a 20-hectare riverside park. Local authorities are also planning to build a second bridge to Thu Thiem connected to Ho Chi Minh City’s centre.
However, Chau warned that due to the scale of this area, only major investors were in the running for the work.
According to the Thu Thiem Management Board, more than 10 projects have kicked off work in the area.
Dai Quang Minh Real Estate Investment Joint Stock Company is building a 37-hectare residential area featuring houses, apartments, school, park and cultural centre. Meanwhile Duc Khai Joint Stock Company has planned to build the Binh Khanh Residential Area over 39 hectares consisting of various apartment blocks varying from 3 to 25 storeys.
After completion, these two projects will serve as examples for other investors to follow.
Vingroup was also chosen to develop an international shopping, finance and housing development in Thu Thiem.
It will also be in charge of developing a shopping and housing area over 79 hectares on Thu Thiem Peninsula, opposite the city’s central business district.
Foreign investors have also started work in Thu Thiem, with South Korea’s Lotte working with a Japanese investor to build a complex of shopping centre, hotel, serviced apartments, offices and apartments. The $2 billion complex will be built over a 10 hectare site and be started soon.