Daewoo E&C Promotes Investment and Development Project in Vietnam's Star Lake City

[Asia Economy Reporter Yoo In-ho]

Daewoo E&C is advancing the Starlake City new town complex development project in Hanoi, Vietnam.

Daewoo E&C announced on the 3rd that on the 20th of last month, it signed an investment and development agreement with domestic financial institutions including KDB Industrial Bank, KB Securities, BNK Busan Bank, Shinhan Capital, Hanwha Investment & Securities, and JR Investment Management to promote the complex development project within Starlake City in Hanoi, Vietnam.

The total development project cost is $388 million (460 billion KRW). Daewoo E&C will construct a complex building including a hotel, serviced residences, offices, and retail on one block (B3CC1 block) within the site. The complex building will consist of two towers, each with 2 basement floors and 35 above-ground floors, with construction starting this year and scheduled for completion in 2024. The hotel to be housed in the complex building has already been decided as Hotel Shilla. Nearby blocks are expected to be occupied by Korean companies such as Samsung Electronics, E-mart, and CJ.

Daewoo E&C will jointly invest with domestic financial companies to form a fund for implementing the complex development project and establish a Special Purpose Company (SPC) in Vietnam to promote the project. This is the first case of domestic financial institutions making equity investments in a large-scale real estate development project in Vietnam.

A Daewoo E&C official said, “Through the Hanoi Starlake City project in Vietnam, we will establish our capabilities as a developer overseeing and promoting overseas new town development projects and actively discover future investment and development projects. It is meaningful that we have built a new order pipeline by jointly promoting local development projects with domestic financial companies.”

Meanwhile, the Hanoi Starlake City project is the first Korean-style new town export project that began in 1996 when Daewoo E&C proposed the creation of a new town to the Vietnamese government. The project involves developing a new town in the Tay Ho area, located northwest of Hanoi’s old city, with an area of 2,104,281㎡ (636,545 pyeong), which is two-thirds the size of Yeouido. The total project cost is $2.2 billion (2.6 trillion KRW).

This content was produced with the assistance of AI translation services.