US$4 billion project in Thu Thiem new urban area may face rejection
The Ho Chi Minh City People’s Committee is keeping the development plan initially designed for Thu Thiem new urban area and does not expect to approve new projects not under the original plan.
The Thu Thiem Urban Area Management Board recently sent a document to the People’s Committee on the Thu Thiem program, repeating its view that it won’t accept investment projects which require an adjustment of the initial development plan.
Regarding the US$4 billion project suggested by a group of US investors, the board said it needed more research on the programming and infrastructure functions.
In late May 2016, Johnathan Hanh Nguyen, president of IPP Group, and three investors from the US suggested an investment project with capital of US$4 billion in Thu Thiem new urban area in district 2.
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The project, if implemented, would comprise a 70-storey tower and lower towers, an office building, shopping mall and entertainment area.
The investors want to set up the project in Zone 1 of the urban area, in the northern part of the core, designed to be a high-density multi-functional trade & service center.
There would be several key construction works, including a convention center, museum, opera theatre and programming information center.
The construction works there are supposed to be no more than 50 stories. The number of permanent residents would be 14,900, while the number of people at work 81,700.
Nguyen The Minh, deputy head of the Thu Thiem Urban Area Board of Management, said Zone 1 comprises 11 land plots, but the investors plan to use only one plot to build towers, and another 10 plots for resorts and restaurants.
According to the management board, the detailed design of the project submitted by the investors show that only the 70-storey building has a financial service function, which fits the design, while other items have functions different from the original plan.
“This will spoil the initial plan which called for the land to be an area for finance & banking,” Minh said.
According to Minh, the investors plan huge investment capital of US$4 billion. However, to date, they have not shown detailed information about the capital arrangement.
Ho Chi Minh City Mayor Nguyen Thanh Phong said city authorities had also received US investors who wanted to build a resort in Thu Thiem, but he turned down the project.
