Ho Chi Minh City authorities have decided to auction a long-delayed mixed-use property development in the city’s Nha Be District, which will also include a golf course. The HCMC authorities are expected to proceed with the auction after being petitioned to do so by the management of the Southern City New Urban Area.
The area in discussion is located in the Phuoc Kien Ward area of Nha Be District in what is considered to be a prime location. Development plans include a residential project that will also contain entertainment and sports areas and will include a 36-hole golf course.
Officials from the Southern City New Urban Area management said in their petition that at least three companies have expressed interest in obtain licenses for the areas development and that in order to move forward in an expeditious and transparent manner that an auction be undertaken.
The three companies that have expressed an interest in the area include: Taiwanese-invested Phu My Hung Corporation; the Tan Thuan Industrial Promotion Company Limited and a consortium of Hoa Phong Company Limited and Sun Flower. Officials consider it reasonable to expect that other companies or groups would bid for the rights to license and develop the land if an auction is organized since many real estate developers are interested in developing areas around HCMC.
The project was envisioned in 2000 and has been delayed for more than 15-years:
2000: HCMC authorities decided to create a master plan for the 250-hectare project, which would include residential areas, healthcare and sports facilities along with offices and shops. In order to make the area “unique”, a 36-hole golf course was also added into the development plan. A Taiwanese company, CT&D was asked to develop the master plan.
2003: Authorities from the HCMC government and the Southern City New Urban Area management evaluate, adjust and finally approve the plan issued by CT&D. At this point, the government was ready to move forward, but CT&D delayed and ultimately failed to fulfill its investment obligations. 2007 CT&D “officially” withdraws from the Nha Be project CT&D recommended that the city should allow its joint-venture partner, the Phu My Hung Corporation, to be the project licensee and take over the project.
2009: The Vietnamese Prime Minister, in a decision (#1946) on the construction of golf courses in Vietnam, for the 2010 ~ 2020 period, did not include the Nha Be projects golf course. As a result of this, the project was again put on hold, since its “unique” attribute was no longer included.
2015: HCMC authorities asked the Prime Minister to amend and update the 2009 decision and to include a scaled-down, a 9-hole,15-hectare golf course into the governments approved golf course development plans.
2018: Officials from the Southern City New Urban Area management are asking the HCMC government for authority to proceed with an auction for the Nha Be development project. According to media repots, the development plans will once again include a 36-hole golf course.
Although officials from the HCMC government seem to be ready to move forward, the HCMC Real Estate Association noted that since the project is a large plot which includes agriculture lands, private lands and public lands, that official agencies will first have to deal with a variety of issues related to land acquisition and compensation.
The HCMC Real Estate Association commented that the city can’t create an auction for the project license until it know how much it will need to pay in land and relocation fees and that even under a “best case” scenario, it will take a minimum of 3-years to deal with land acquisition issues.