S. Korean builder GS allowed to resume delayed development project in Vietnam

By Lim Chang-won Posted : May 14, 2018, 11:37 Updated : May 14, 2018, 11:37

[GS Engineering & Construction]


SEOUL -- Shares of GS Engineering and Construction were on the rise on Monday on news that the South Korean builder has been allowed to resume the development of its $189 million new township project in Ho Chi Minh City, Vietnam, after eight years of delays.

As of 11:00 am (0200 GMT), GS E&C, an LG Group unit, was up 6.42 percent to trade at 46,400 won (43.3 US dollars). The Metrocity development project dates back to 2004 when the builder purchased land in Ho Chi Minh City for the completion of its GS Metrocity by 2032.

GS Metrocity will consist of a financial center, shopping malls, and high-end office and apartment blocks. Since receiving its investment certificate in 2007, the project has been delayed due to difficulties in land clearance and compensation as well as a disagreement with local authorities on tax obligations.

On May 3, Vietnam Investment Review (VIR), a newspaper in the Southeast Asian country, reported that GS E&C got the green light from the Ho Chi Minh City People's Committee to resume its project in the Nha Be district.

As the People's Committee of Nha Be was asked to push for land clearance and compensation by May 2018, all necessary procurements must be finished, and the cleared land must be transferred to the developer by the end of May, VIR said, adding city authorities hope to start the project in the third quarter of this year.

The GS group has been involved in other projects in Vietnam. Its retail arm, GS Retail, is building a $30 million trade complex in the southern province of Binh Duong.
기사 이미지 확대 보기
닫기