Ambitious plan for a $3.5 billion Vietnamese International University
Township or VIUT in the southern hub of
Ho Chi Minh City has shown new signs of progress.
The giant project has been left
on papers since it was licenced in 2008 largely due to site clearance
obstacles.
Nguyen Van Thanh, chairman of the
North-West Metropolitan Area Management Authority said it would timely issue
necessary legal documents in relate to land rental and relocation compensation
for local residents at the site so as to enable Berjaya Land Berhad, the
Malaysian developer of the project to move ahead.
Thanh made the decision after a
recent meeting between the authority and Berjaya Land Berhad.
But, he also said that the
authority could not give a precise deadline for the issuance of such legal
documents as calculating the rentals and compensation costs were complicated
due to overlapping current land regulations.
In this context, ground-breaking
could still be more several years ahead because of the completion of these
calculations and the need for the local authorities and the developer to
complete other necessary procedures to secure the site.
Delays in a discouraging economy
might be shrugged off by some developers, but Berjaya Vietnam seems frustrated
by the process.
Phuong Anh Phat, senior business
development manager of Berjaya Vietnam, said the firm did not face financial
difficulties and that the firm could construct the project immediately after
the authority gave it the land.
According to the initial design,
around 100ha land in the 925ha VIUT project would be used for higher education,
expected to be most modern universities in South East Asia. After completion,
the project would also comprise 20 kindergartens, primary and secondary
schools, apartments and townhouses; clubhouses and sport areas, and a 15ha
medical care facility.
Phat said that around 300
hectares in the project was expected to construct new public universities
replacing old ones in the centre of the city. This will change the main
characteristic of the VIUT – a township for international schools, which make
it harder for the firm to call for investments from international universities
all over the world.
Previously, Berjaya Vietnam
announced that the 55ha first phase, which provide around 2,000 apartments and
255 semi-detached houses, would be completed within three years.
“Our project is expected to
provide a large number of apartments and semi-detached houses. In the current
circumstance, it however would be difficult to sell all of those as the Ho Chi
Minh City residential market is forecasted to be in danger of oversupply,” said
Phat.
Thanh Thuy | vir.com.vn
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