THE NEED OF INVESTMENT
Name of project: Investment for the construction of Sport, entertainment and culture park cum service commercial centre & apartment houses
Location: North of Ta Quang Buu street, Ward 4, District 8, Hochiminh City
III OVERVIEW OF THE INVESTMENT ENVIRONMENT:
1. Vietnam Socio-Economic in Brief:
Viet Nam is a nation on the eastern part of the Indochinese peninsula, looking out to the Pacific Ocean. Vietnam has a 4,550 km long land borderline, with China to the north, Laos and Cambodia to the west, the East Sea to the east. On the map, Vietnam is a curving strip of land looking like an elongated letter “S”, stretching from 23º 23′ N to 8º 02′ N, covering a total length of 1,650km (from north to south). Vietnam has 600km at the widest part, and is only 50km at its narrowest part. With a population of more than 83 million of inhabitants. With an annual growth rate of 1.18% Viet Nam is the 13th most populous country in the world. To date, Vietnam has 25% of its population living in the cities and the rest 75% living in the rural areas . Ha Noi, the country’s capital, and Hochiminh city are among the most populated cities of the country..
Through the robust economic reforms in the recent two decades of doi moi (‘change for the new’), Vietnam’s economy enjoyed continuing development, with economic growth (GDP) being stably kept at a high level; Vietnam’s economic structure has been moving in the industrial and services orientation, towards a multi-component, market-oriented economy under the state regulation, and in which the private sector enjoys uninhibited development in regard of scale and emplacement, and in all trades and fields of activities that are not prohibited by law.
High growth, with the economy’s structure being shifted towards the progressive trend is seen as the most striking achievement of today’s Vietnam, especially in the recent years.
In 2008, the global recession and financial crisis had its impact on Vietnam, slowed down its pace of growth. Yet, unlike many other countries, Vietnam’s economy DID not fall into a deep downswing. Its GDP grew slower than previous years but still achieved 5.32 per cent, a level quite high in comparison with many other countries across the world with positive growth.
2. Socio-economic Overview of Hochinminh City:
Hochiminh City is one of the most prominent economic centre in the region and the world over. For the country Hochiminh City is the centre of major economic region in the South, it also plays the role of “a pole of development” of Vietnam’s economy, and rallies the whole region to prosper. It’s been also a door to open Vietnam out into the world.
III. URBAN REFORM PROGRAMME, AND RELOCATION OF SLUM HOMES OVER CANALS/ WATERWAYS IN DISTRICT 8:
According to official statistics by some functional organs, Hochiminh City has approx. 1,800 km of rivers, canals and other waterways, which are under various administrative levels. After many years long of weak and poor management, dozens of thousands household have arbitrarily encroach the rivers, canals, and ditches to build up their homes.
In the plan to carry out the action programme implementing the housing project (stage 2006-2010) dated 21/07/2006 by its People’s Committee, Hochiminh City has specified the programme “to remove and relocate 15,000 household living over and along canals /waterways across various districs within the city”, in which the Tan Hoa Lo Gom basin and their tributaries: 4,047 household, Canals Tham Luong, Ben cat, Vam Thuat, and arroyo Nuoc Len (stage 1), the tributaries Nhieu Loc – Thi Nghe: 4,800 households; Canal Kenh Doi, Canal Kenh Te: 4,676 households.
District 8 is recorded to have 77,600 houses, with 45 canals and other waterways, large and small which runs all across the District terrain. District 8 also has the highest number of homes encroaching over and along various canals and waterways, with about 10,600 homes seated right on waterways’ protective corridors and 16,000 slum houses gathered in various clusters. The District 8’s Urban Reform Programme for the years 2008 –2020, has been set to relocate all slum houses on canals and rivers. This means in the next decade the District has to relocate about 26.500. The entire plan will be deployed in a number of stages.
GDP size, in actual price, reaches 88.228 billions USD. Per capita income attains 1024 USD, higher than the respective figures 71.104 billions USD and 835.9 USD per capita in the year 2007
GDP per capita income in USD exchange rate (USD per capita)
In 2009, The country’s GDP growth rate achieved 5.32%, in which the growth rate in fishery-forestry sector is 1.83%, industry and construction_ 5.52%, services_6.63%. In the economic report announcement of the year 2009, the Asian Development Bank (ADB) forcasted Vietnam, GDP growth rate would reach approx. 6.5% in the year 2010 and 6.8% by 2011
The First period from 2008 to 2010 saw 2,600 houses over the arroyo Ụ Cây and the west bank of Xom Cui arroyo being cleared. The next period, from 2020 to 2012 will have the clearance of remaining 2,500 houses along the canals Doi, Ong Lon, Ong Nho, and Tau hu.
The next period from 2012 to 2015 will clear the 5,500 houses on the southern bank of Canal Doi, and the west bank of Arroyo Xom Cui. In this period District 8 is expected to have the resolute clearance of the 16,000 houses in 26 slum clusters (not right along the canals but) scattered all across the district’s area.
In the orientation course of the District 8 People’s Committee, latest by 2020, all the houses in slump and over and along the canals should be converted to high-rise condominium clusters combined with commercial centres in civilized modern standards, aiming at improving the living quality of the population.
IV. THE NEED FOR INVESTMENT
The population over and along the arroyo Ong Nho at the north of Ta Quang Buu street, C has 745 households. This is a self-developed population cluster with many slum and makeshift houses made from short-lived materials scattered along and over the arroyo Ong Nho, over 100 of which have less than 20 sq. meters of area. The City and District 8 authorities have included this area into their Urban Reform Programme to clear up slum houses over and along numerous waterways in District 8 area, and with a resolution to complete before 2015.
In District 8’ s course of orientation, the Dong Dieu area will be the District’s Sport, Entertainment and Culture Park. The City and District 8 authorities call on investment owners to participate in this Urban Reform Programme to build the park to serve the interest of local population and the relocation of the people living along the arroyo Ong Nho, as part of the said project.
In response to the City’s and District 8’s orientation plan, Minh hang Enterprise, a tourist business in Dong Dieu, has been entrusted with the role of the investment owner for the Sport, Entertainment and Culture Park’s project, at the north of Ta Quang Buu, Ward 4, District 8. So far, Minh hang Enterprise has accomplished the clearance and compensations of 8 hectares over the total area of 15,484 hectares. The enterprise will proceed with the remaining slum area (6 ha) along the canals as soon as a green light is given from the City’s investment direction.