LH Pioneers 'Smart Hallyu' in Vietnam, a Key Country in the New Southern Policy

Signing of MOU for Cooperation with Hue City, Vietnam for Smart City Development in Hue Seong Area

LH President Kim Hyun-jun (left in the photo) and Governor Nguyen Van Phuong are signing an agreement and taking a commemorative photo through a non-face-to-face online video system on the 10th. / Photo by LH.

Korea Land and Housing Corporation (LH) announced on the 13th that it has signed an MOU for smart city cooperation with Thua Thien Hue Province in Vietnam to facilitate the smooth progress of the smart city and economic zone projects being promoted in the central region of Hue Province, Vietnam.

The agreement was signed on the 10th at the 5th World Smart City Expo held at KINTEX in Ilsan through a non-face-to-face online video system. According to the agreement, both organizations agreed to establish a comprehensive cooperation system for the development and application of smart city strategies, policies, master plans, and related technologies for urban development and economic free zones within Thua Thien Hue Province.

LH and Thua Thien Hue designated the Chan Mai Rang Co Economic Zone and the Smart Media City development project included in this smart city agreement as pilot project districts. LH has abundant know-how in new town development, and Thua Thien Hue can support permits and investment attraction, so the cooperation between the two organizations is expected to create great synergy in revitalizing smart city projects within Thua Thien Hue.

Thua Thien Hue is a city with a population of 1.13 million located in the central region of Vietnam and is strategically positioned as the eastern gateway of the East West Economic Corridor (EWEC), one of the Indochina Peninsula economic corridors. Compared to the northern and southern regions, the central region offers affordable labor and land costs and has competitiveness in terms of future development potential. Considering the strategic importance of Thua Thien Hue, the Vietnamese government plans to elevate Thua Thien Hue to a centrally governed city (similar to a metropolitan city in Korea) by 2025.

Hue Smart Media City covers an area of 396,000㎡ and is located within the An Ban Jeong new town in the center of Hue City. LH plans to develop this area into a smart city specialized in media, medical, and education sectors. Centered around the Huong River, it is adjacent to the Citadel, a cultural heritage of the Nguyen Dynasty in northern Hue, and to the south, it is located in the new city area based on the street network from the French colonial period, offering excellent location conditions. Additionally, it is about 12 km from Phu Bai International Airport and 45 km from the Chan Mai Rang Co Economic Zone located at Chan Mai Port, so synergy effects are expected through the linkage of the two project districts in the future.

The Chan Mai Rang Co Economic Zone in Thua Thien Hue is divided into three areas including a general industrial complex, covering an area of 18,150,000㎡. LH plans to prioritize the first phase of the general industrial complex covering 1,150,000㎡. Near the Chan Mai Rang Co Economic Zone is Chan Mai Port, and about 35 km away are Phu Bai International Airport and Da Nang International Airport, making it an area with excellent utilization of metropolitan transportation and logistics infrastructure. Also, Vietnam’s economic zones enjoy a preferential tax rate of 10% for 15 years from the start of the project, a 4-year corporate tax exemption, and a 50% corporate tax reduction for the following 9 years. LH plans to offer new options to Korean companies beyond the industrial complex markets divided between northern Hanoi and southern Ho Chi Minh City through the tax benefits and low land lease fees of the economic zone.

Following the signing of the smart city cooperation MOU with Thua Thien Hue, LH plans to actively proceed with subsequent schedules. Hue Smart Media City is expected to acquire the exclusive business development rights from the Thua Thien Hue government within this year, and currently, preliminary feasibility studies and the establishment of a basic smart city strategy are underway. For the Chan Mai Rang Co Economic Zone, LH plans to secure business rights from the Thua Thien Hue government within this year, simultaneously conduct a 1:500 detailed plan and feasibility study, and proceed with a consortium call for joint investor formation.

LH plans to leverage its experience and technologies accumulated through new town development to promote various projects in Vietnam. It is reviewing the 2nd and 3rd phases of the Korea-Vietnam Economic Cooperation Industrial Complex, public housing in Hanoi and Da Nang, and smart cities in Dong Nai Province and Can Tho City, which is expected to provide more opportunities for Korean companies to enter the Vietnamese market.

Kim Hyun-jun, President of LH, said, "We plan to strengthen cooperation with Thua Thien Hue, Vietnam, based on joint entry with the private sector in the future," adding, "We hope to expand cooperative projects between the two countries such as smart cities, industrial complexes, and Vietnamese public housing, and to enhance exchanges and cooperative relationships with LH in various fields."

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