South Korean President Lee Jae Myung (R) shakes hands with General Secretary of the Communist Party of Vietnam To Lam during a press conference at the presidential office in Seoul in August. File Photo by Song Kyung-Seok/EPA/Pool
SEOUL, Jan. 5 (UPI) — Korea Land and Housing Corp. said the state-run company selected several private-sector enterprises as preferred bidders for a large-scale city development project in Vietnam.
Among them were the country’s leading contractors, Hyundai E&C and POSCO E&C, along with JR Asset Management. Public-sector involvement is also expected through the Korea Overseas Infrastructure and Urban Development Corp.
The Vietnamese government is seeking to attract investment to move forward with a multibillion-dollar project to construct a new city in the fast-growing Southeast Asian country.
The initiative is designed to transform a 2,000-acre site in Bac Ninh Province, about 12 miles northeast of Hanoi, into a self-sufficient urban center capable of accommodating more than 100,000 residents.
Midway through 2024, LH signed a memorandum of understanding with Bac Ninh Province to pursue the development. Last August, it asked the provincial government to issue an investment policy approval.
Once the approval is secured and related administrative procedures are completed, LH plans to establish a special purpose company with Vietnamese partners to implement the 50-year phased initiative, which is scheduled to conclude in 2076.
Early last year, LH estimated the project’s value at $4.1 billion, but the company noted that the figure would be subject to change depending on project scope and other factors.
The Seoul administration has expressed high hopes for the initiative. For example, President Lee Jae Myung cited it during a meeting with To Lam, general secretary of Vietnam’s Communist Party, in Seoul last August.
“We will provide full support to advance cooperation on the Bac Ninh new town development,” Lee said at the time.