HK developers beat a path to fast-growing Indochina country
A number of small- to mid-sized Hong Kong property developers have started investing in Vietnam. Hong Kong-listed LeRoi Holdings has diversified out of its core business of designing and distributing ladies' fashion apparel into property development in Vietnam.
The group set up a joint venture in September with Vietnamese investment holding company Nguyen Hung to develop a golf course, high-end villas and a middle-income residential complex on a 586 hectare site in Duc Hoa district, which is 30km from Ho Chi Minh City. Total investment in the development is estimated at HK$1.56 billion.
In June, Hong Kong-based developer Chuang's Consortium International said it would join forces with Vietnamese company Hong Phat to develop a residential and commercial project, also in Duc Hoa district.
Hong Kong-listed Luks Group (Vietnam Holdings), formerly Luks Industrial (Group), announced in August it would set up a joint venture with Vietnamese partner Indochine to develop residential and commercial projects in the country with site areas of 159,737 square metres. Swire Properties, Henderson Land, Sun Hung Kai Properties and Hongkong Land were all seeking investments in the country, sources said.
Rapid urbanisation is expected to double the population of Ho Chi Minh City from seven million in 2005 to 14 million by 2020. The government aims to improve living environments by increasing the average living space per capita from a current 10 sq metres to 15 to 20 sq metres by 2010, implying 50,000 to 60,000 new housing units will be needed.
Ho Chi Minh City and Hanoi will need 5,000 new flats each every year.