Vinhomes Golden River apartment complex in District 1,
Ho Chi Minh City. Photo by Shutterstock/Evan_Unit01.
 

Real estate giant Vinhomes plans to set up a joint venture with its parent company, Vingroup, to develop a $10 billion urban area in northern Vietnam. 

The investment decision, along with some key personnel changes, was recently approved by the company's shareholders, and the joint venture will invest in the 4,110-hectare Ha Long Xanh Complex Urban Area project in Quang Ninh Province's Ha Long and Quang Yen towns.

With 3,186 hectares in Quang Yen and the rest in Ha Long, the project will be a multi-purpose coastal urban area with eco-resorts, golf courses and other services.

It will cost VND232.37 trillion ($10 billion), of which the developer will bring in around $1.5 billion and raise the remaining 85 percent through other means. Vinhomes will contribute 70 percent of the $1.5 billion.

Shareholders also approved the dismissal of Nguyen Viet Quang from the company's board of directors and the appointment of four others to the board.

The new board members include Ashish Jaiprakash Shastry, partner and co-head of private equity for American investment firm KKR Asia Pacific, Richard Hoang Quan, chairman of Finsafe Investment and Technology JSC., Pham Thieu Hoa, CEO of Vinhomes, and Tran Kien Cuong, Vinhomes' project development manager.

KKR and Singapore investment firm Temasek last month paid $650 million to acquire a 6 percent in Vinhomes.

This year Vinhomes targets revenues of VND97 trillion ($4.18 billion), an 88 percent increase year-on-year from 2019, and net profit of VND31 trillion ($1.34 billion), a 27 percent increase.

In the first quarter of this year Vinhomes was the most profitable listed company with a pre-tax profit of over VND10 trillion ($431.03 million).