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HCMC seeking Japanese companies for urban area development

Released at: 14:02, 07/03/2018

HCMC seeking Japanese companies for urban area development

Photo: Khanh Chi (VET)

Developers from Japan have many opportunities to invest in the city's infrastructure, seminar hears.

by Hong Nhung

Japanese enterprises are committed to bringing advanced technologies to develop urban infrastructure in Ho Chi Minh City, Mr. Keiji Kimura, Chairman of the Japanese Conference for Overseas Development of Eco-Cities (J-CODE) told a seminar co-hosted  recently by the Ho Chi Minh City Real Estate Association (HoREA) and J-CODE attended by 40 Japanese business leaders and many Vietnamese developers.

Mr. Kimura said that Vietnam is in the process of rapid urbanization; an experience Japan went through 50 years ago. Japan is therefore keen to cooperate with the city to provide experience in addressing challenges such as traffic congestion, population pressure, and environmental pollution, towards building the city into a modern and eco-friendly metropolis with sustainable growth.

Deputy Director-General, City Bureau, at Japan’s Ministry of Land, Infrastructure, Transport and Tourism, Mr. Shinichi Sakaki, said the Japanese Government now has policies to support real estate developers to promote investment abroad. This provides favorable conditions for Ho Chi Minh City to work with Japanese real estate developers in urban infrastructure improvements.

Mr. Le Hoang Chau, Chairman of HoREA, said there remains nearly 1,200 real estate projects in the city that are calling for cooperation and joint ventures with partners, especially partners from Japan. At the same time, many Japanese companies have been involved in major urban infrastructure projects funded by ODA from the Japanese Government.

In the last five years there have been a number of enterprises and funds investing in the local real estate market through various forms of cooperation: joint ventures, merger and acquisitions (M&As), or lending to develop projects in accordance with Japanese property standards.

Moreover, according to Mr. Chau, the potential for business cooperation between Japanese and Vietnamese developers will be huge in the future. 2018 is the first year of implementing the National Assembly’s Resolution No. 54 on specific mechanisms and policies for Ho Chi Minh City’s development.

Deputy Director of the city’s Department of Construction Le Tran Kien said that after 20 years of relocating citizens living on and along dykes and canals, the city has provided compensation and relocated 36,000 houses and targets relocating 20,000 between 2016 and 2020.

Urban landscaping projects are divided into three categories: those using the State budget, those for commercial housing construction in combination with urban development, and those in the form of public-private partnership (PPP).

By 2020, the city plans to repair, upgrade, or build half of 474 apartment buildings built before 1975, he said.

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