The original plan involved schools of all levels, entertainment areas, an IT park, and more

The lack of progress of the $2.56 billion venture, located in the northwestern urban area of Ho Chi Minh City, was laid bare in a February document sent by Nguyen Hanh Phuc, deputy general director of Berjaya Vietnam International University Town LLC, to the city’s Department of Planning and Investment.

Various problems were raised in the process of implementing the next steps of the project. Firstly, the developer must carry out the deposit procedure to secure the implementation of the project according to the provisions of Article 43 of the Law on Investment.

However, the adjusted investment certificate of the project issued in May 2022 raised the capital by $130 million to $2.56 billion compared to the one granted in 2008, and there is no specific information regarding project progress.

A source close to the project told VIR that the investment certificate only states: “The progress of the project will be updated after the competent state agency fully considers the investor’s proposal in adjusting this content.”

With no progress of project implementation, the developer cannot make a security deposit as prescribed. In addition, the deposit is also a condition for developers to carry out the procedures for land allocation according to the provisions of the Law on Land.

On April 4, a decision to establish a management unit for the northwest urban development area, signed by the chairman of Ho Chi Minh City People’s Committee, brings hope to speed up the progress of a series of projects located in this area, which includes the Berjaya township.

In the appraisal report of the project carried out by the Ministry of Planning and Investment in 2021, the progress of completing the compensation, site clearance, and resettlement of the township was required 36 months from the date of issuance of the adjusted investment certificate.

At the same time, the entire project investment and construction work must be finished within 120 months from the completion of compensation and site clearance work.

According to the Department of Planning and Investment, the city’s agencies do not have a basis to determine the project investment schedule, making it difficult for inspection and monitoring of the project taken Berjaya Vietnam also has no basis to take the next steps.

Once expected to be the most modern university training centre in Southeast Asia, the township venture is still a wasteland 15 years after getting licensed.

The initial investor was Malaysia Berjaya Leisure, which was granted the first investment certificate in July 2008 to cover 880 hectares with the total investment capital of $3.5 billion. The project was immediately stuck for 10 years due to weak finance.

Work resumed in 2018 when Berjaya Group decided to transfer 97.9 per cent of stakes of Berjaya Vietnam International University Town LLC to Vinhomes at a total value of $510 million. Despite the switch, Berjaya continues to run the joint venture involved in the township. The entire project was set to include schools from primary to university levels, residential areas, a commercial zone, entertainment, medical and sports areas, and an IT park.

In 2016, Ho Chi Minh City People’s Committee assigned local authorities to clarify its feasibility to be continued or revoke the investment certificate. The investor provided documents proving its financial capacity to implement the project, and at the same time submitted the application for adjustment of the project schedule.

At the end of 2021, the funding was further adjusted. At the time, the government agreed on the total capital of $2.56 billion with a project lifespan of 50 years from the date of issuance of the adjusted investment certificate.

In Malaysia, Berjaya is a large group, however, its business in Vietnam is not comparable. In 2018, Berjaya also transferred one-third of its stakes in another large-scale project, the Vietnam Financial Centre, to Vinhomes, which was valued at $39 million.

Berjaya has been developing other projects. The company owns 75 per cent of D2D Industrial Urban Development, which is developing Bien Hoa City Square. With a sum of $230 million, it consists of a 5-star hotel, Bien Hoa Mall, and the Topaz Twins and Amber Court residential towers.

Berjaya has also been involved in the hospitality sector with projects like Berjaya Long Beach hotel on Phu Quoc. In the residential sector, Berjaya acquired 80 per cent of the Handico 12 joint venture to develop Garden City in Hanoi’s Long Bien district, with capital touching $500 million. And in finance, Berjaya holds 49 per cent of SaigonBank Berjaya Securities JSC and it is an investment partner of Vietlott.