Berjaya Vietnam’s multi-billion dollar property projects are facing dark times.
The company, a subsidiary of Malaysia’s Berjaya Land Berhad, is getting cold feet about constructing its $930 million Vietnam Financial Centre (VFC) in Ho Chi Minh City which should have got off the ground in May, 2012.
Phuong Anh Phat, Berjaya Vietnam senior business development manager, said the company would continue to invest this project and delay was caused by the company waiting for the city’s permission to use part of the project’s basement for retail space.
“In our design, VFC is as a multi-function complex comprising five high-rise buildings ranging from 44 to 48 stories linked together by a six-storey podium. Its basements will not be used as a parking lot, but also a retail area. The design is very popular in multi-function complexes in developed countries. In Vietnam, Vincom Centre also applied the design. But Ho Chi Minh City request us to use all of floor areas in basements for parking,” said Phat. “We petitioned the city to accept our design and hope that the city would soon issue its permission,” added Phat.
Licenced in February 2008, the 8.1 hectare VFC, bounded by Cao Thang, February 3 and Le Hong Phong streets in the city’s District 10, has faced losing its licence a number of times. Berjaya Vietnam’s another long-delay large-scale property projects in Vietnam is the $3.5 billion Vietnam International University Township (VIUT) in Ho Chi Minh City’s Hooc Mon district.
With total area of 925ha, VIUT is the largest urban area project licenced in Vietnam in 2008. The developer ever said that it would kick-off in 2009, but currently still has empty land. Berjaya Vietnam is also planning to adjust the construction progress of the $2 billion residential area in southern Dong Nai province as Nhon Trach district’s poor infrastructure was presenting environmental challenges.
With the current gloomy picture covering the nation’s property market, the firm’s $500 million Hanoi City Garden in Hanoi is also facing difficulties.
Berjaya Vietnam is developer of nine large-scale realty projects across Vietnam, including Berjaya Long Beach Resort on Phu Quoc island./.