Friday, August 31, 2007

$500 million investment committed to Danang Vietnam



VietNamNet Bridge – On Tuesday witnessed more than half a billion U.S. dollars committed to property projects in the central coast city of Danang on the sidelines of a regional investment, trade and tourism forum.

South Korea's Kreves Development Co., whose parent is Yujin Kreves Co., signed a contract with the city to invest US$200mil to develop apartment and office building projects.

The company will develop two 28-story and 30-story apartment buildings for 1,600 households, a 42-story complex, an international school, and a department store in Hoa Cuong Bac District.

The projects will supply houses for Korean and foreigners who are doing business in Danang's industrial parks and neighboring ones.

Yujin Kreves Co. entered in Vietnam some 10 years ago with a factory of metal tableware goods and stainless steel plates built.

The city awarded a license to VinaCapital to develop the VinaCapital Square urban development project. The new town east of the Han River Bridge in Son Tra District will be capitalized at US$325mil, one of the biggest real estate projects in the city.

VinaCapital Square will cover nine hectares, comprising two shopping centers, two 4-5-star hotels with 600 rooms, a 25,000 sq.m conference centre and a 42-storey office building. The investor also plans to build more than 1,300 high-grade apartments and villas.

At the forum, officials and business executives highlighted investment trade and tourism potentials in the East-West Economic Corridor (EWEC), but urged reforms should be taken to effectively tap them.

They said many things, especially investment policies and administrative reforms, remained to be done to foster EWEC growth from mere transport connectivity to economic prosperity.

The forum was part of the EWEC Week, which started Monday with the participation of more than 500 investors and government officials from Vietnam, Laos, Thailand and Myanmar and representatives of donors and development partners.

Vietnam, Laos, Thailand and Myanmar have roads connected to EWEC provinces after the opening of Friendship Bridge II, and are building frameworks of cooperation between their provinces to make EWEC a real economic corridor.

EWEC will prove to be attractive to investors as it will help to reduce costs for goods and passenger transport between the four countries, investors said.

Vietnam's Deputy Minister of Planning and Investment Cao Viet Sinh said the completion of the corridor would be an opportunity for the countries to better access natural resources, seafood and energy.

Experts said at the meeting that the central part of Vietnam had many advantages to make the most of EWEC for fueling socio-economic growth.

The 1,450-km corridor stretches from Myanmar to Vietnam's Danang through Thailand and Laos. Danang can be used as a gateway to the Eastern Sea by Mekong sub-region nations.

The central region has many infrastructure projects underway. Domestic and international airports under renovation include Danang International, Phu Bai in Hue, and Chu Lai in Quang Nam.

There are many seaports under construction or upgrade, such as Chan May in Thua Thien-Hue, Tien Sa in Danang, Ky Ha in Quang Nam, Sa Ky in Quang Ngai and Vung Ang in Ha Tinh.

Danang and Hue will become the hubs in the central region with a series of industrial zones like Phu Bai, Lien Chieu and Hoa Khanh, and other economic zones, namely Lao Bao, Vung Ang, Chan May-Lang Co, Chu Lai and Dung Quat.

Ayumi Konishi, country director of the Asian Development Bank (ADB)'s Vietnam Resident Mission, said the bank had supported development of infrastructure and helped reduce poverty along the corridor.

He told the Daily that many Japanese investors were attending the forum to see whether they could invest along the corridor.

Somsavat Lengsavad, deputy prime minister of Laos, said: "We would like to request our meeting to consider together on how we can realize the concept of "Four Countries, One Destination".

At the forum, two international partners who do not belong to EWEC signed agreements on investment projects in Danang during the EWEC Week.

(Source: SGT)