PETALING JAYA: Gamuda Land is acquiring a 13.8-acre land parcel for US$53.88 million (RM228.5 million) in Vietnam’s Binh Duong New City, a 2,600-acre integrated township set to be the administrative centre of the nation’s affluent Binh Duong province.
The transaction between Gamuda Land HCMC JSC and Binh Duong Trade and Development JSC (TDC), a subsidiary of Becamex IDC, will see Gamuda Land complementing its track record in Vietnam with a landed development tailored for the burgeoning Binh Duong New City market.
“Backed by Gamuda Land’s track record in Vietnam with Celadon City in Ho Chi Minh and Gamuda City in Hanoi, we are confident that this acquisition will see Gamuda Land continuing to showcase Malaysian expertise on the international stage,” said Gamuda Land CEO Ngan Chee Meng (pix).
“We remain committed to deepening our presence in the Vietnamese market, which presents an attractive proposition to international developers thanks to strong fundamentals. These include consistent gross domestic product (GDP) growth of 6-7% in recent years, a population of more than 104 million by 2030, high yields for property investments and relatively affordable land prices, as well as the introduction of conducive foreign ownership regulations in 2015.”
Sited on Le Hoan Street in the heart of Binh Duong New City, with proximity to its upcoming World Trade Center, the 13.8-acre parcel’s development will be market-driven, catering for the township’s growing residential and commercial demographics with a mix of townhouses and shophouses giving homeowners the flexibility to conduct business on-premise.
The project leverages on the presence of numerous educational institutes nearby, including The Vietnamese-German University and Singapore International School, as pull factors for family households and a high-quality workforce. Binh Duong New City’s 185-acre Central Park also serves to drive footfall in the vicinity, while accessibility to major routes such as Ring Road 4, the My Phuoc–Tan Van Highway, upcoming MRT and BRT networks and planned NorthSouth Railway facilitates travel to destinations across Southeast and Southwest Vietnam, including Ho Chi Minh City 32km away.
“With a gross development value of US$117 million (RM495 million), the Le Hoan parcel is set to contribute to group earnings, as we continue to focus on high-value opportunities in overseas markets namely Australia and Vietnam. Our investment in Binh Duong New City is emblematic of Gamuda Land’s approach to its international projects to diversify earnings. In addition, the acquisition presents a low risk profile with minimal impact on group net gearing, reinforcing the sustainability of our presence in Vietnam while opening up possibilities for future collaborations.”
The acquisition is in line with Gamuda Land’s emphasis on international projects in its portfolio, which accounted for two-thirds of its property sales in FY2021. This strategy has seen the company through the challenging economic outlook of recent quarters, providing stable lines of revenue amid weaker sentiment and currency fluctuations in the domestic market.
The land parcel will be acquired by Gamuda Land HCMC JSC via project transfer from Binh Duong Trade and Development JSC (TDC). The Le Hoan Street project is set for launch in Q3 2022, concurrent with other high-profile developments such as the World Trade Center Gateway and Aeon Mall, kickstarting the commercial pulse of the area as an integrated hub for international trade, industry and more.
Established in 2010, Binh Duong New City is envisioned as a prime catalyst for the rapid economic, commercial and industrial development of Binh Duong, which surpassed Ho Chi Minh City and Hanoi in 2020 to be the most affluent province in Vietnam with a GDP per capita of US$6,524 (RM27,349).
Chosen as the seat for the province’s Integrated Political Administration Center, Binh Duong New City will house a projected population of 125,000 once complete in 2035. Along with the generation of 400,000 jobs to bolster economic expansion, the integrated development’s flourishing prospects and investment potential underpin the resilience of Gamuda Land’s growing presence in Vietnam.