[Run Again, Construction Korea] Daewoo E&C as 'Kkanbu' with Vietnam... Hanoi's 'Star Lake City' Project

New Town Development Covering Two-Thirds the Area of Yeouido

Daewoo E&C's 'Star Lake City' project site in Hanoi, Vietnam.

Korea's overseas construction efforts have focused not only on the traditional stronghold of the Middle East but also on creating new markets. Daewoo E&C has paid early attention to the Southeast Asian market as part of its strategy to secure future growth engines. In particular, Vietnam is a key strategic hub for Daewoo E&C.

Daewoo E&C established its Hanoi branch in 1991, just before the establishment of diplomatic relations between Korea and Vietnam, demonstrating its commitment to the local market. Over the past 30 years, it has been executing projects worth approximately 3 billion USD. Currently, it is advancing the 'Starlake City' project, developing a new city in the West Lake area, located northwest of Hanoi's old town, covering 2,104,281㎡?about two-thirds the size of Yeouido.

This project is led by Vietnam's THT corporation, wholly owned by Daewoo E&C, with a total project cost of 2.2 billion USD (approximately 2.6 trillion KRW). The first phase of land development and construction of apartments and villas were completed last year, and the 'B3CC1 Block Complex Development Project,' worth 400 million USD and involving numerous domestic financial institutions, is scheduled to commence this year.

Notably, the B3CC1 Block project marks the first instance of Korean financial institutions making equity investments in a large-scale real estate development project in Vietnam.

Recently, Daewoo E&C signed a joint development agreement and a contract with the local Tan A Dai Tang Group for the first phase of the Phu Quoc residential development project. This project involves developing a luxury residential complex comprising upscale townhouses, villas, hotels, and commercial facilities near the central area, as well as convenience facilities such as medical centers, convention centers, cultural centers, and libraries.

A Daewoo E&C official stated, "Although the contract amount is not large at present, this is significant as the first additional development project in Vietnam beyond the THT project," adding, "It will serve as an opportunity to expand further development projects into surrounding areas after the first phase." He also mentioned, "We plan to nurture the Vietnam region as an overseas base market capable of generating stable profits."

The Starlake City project and the complex development project carried out by Daewoo E&C are reported to be steadily increasing annual profits and generating high returns, playing a vital role as a 'cash cow' for Daewoo E&C's overseas business.

A Daewoo E&C representative said, "Vietnam is an attractive investment country that has successfully overcome COVID-19 and is expected to achieve an average annual economic growth rate of over 6% for the next five years," adding, "Based on existing successful cases, we will continue to discover investment and development projects."

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