Despite ongoing stagnation of the domestic property market, many foreign investors are moving ahead with major investment projects.

Thai Nguyen City has never really made the grade as an attractive destination for foreign investors, yet the city was recently lucky enough to catch the attention of a Japanese investor.

The city authority now places high hopes on the $100mil real estate development project drawing major Japanese investor, Intra Group. Once operational, the project is expected to create gravity for other potential investors.

Dang Viet Thuan, Director of Thai Nguyen’s Planning and Investment Department said that the project will help create new impetus for services, tourism, and entertainment activities. It will also play a very important role in the development of the local economy.

“Many investors have expressed willingness to set up in our province. However, their demands for accommodation and entertainment cannot currently be met in Thai Nguyen,” Mr Thuan said.

Mr Thuan said that this investment project has been receiving the greatest ever level of support from local authorities.

The Intra project will be divided into two phases. In the first phase the investor and Thai Nguyen Peoples’ Committee will implement a BT (build - transfer) contract, relating to [unspecified] development at Xuong Rong Lake and other infrastructure items. After the first phase finishes, the local authority will allocate land to the investor to build apartments and trade facilities for sale and lease.

Several days before the Intra project was submitted to the Ministry of Planning and Investment (MPI) for approval in May 2006, US firm Rockingham Asset Management LLC reportedly applied to the ministry for permission to establish a resort and entertainment complex in Phu Quoc Island, Kien Giang Province in the south. The Rockingham Vietnam Property Development Company project will have chartered capital of $200mil, and will raise another $1bil to develop subsequent real estate projects.

Officials said that many other real estate proposals have been lodged with local authorities, including the $76mil project for housing and trade centre development in HCM City.

MPI has licensed a large number of real estate projects over the last six months, including the $86mil Silver Shores Hoang Dat project in Da Nang province, and a BCC project for lease purpose offices and apartments in HCM City.

Source: Dau tu