The proportion of real estate projects in Korea's total construction work in Vietnam is much higher than the global average, with the figure being 23.6% in the 1993-2002 period, then increasing to an average of 24.1% from 2003 to 2012, peaking at 95% in 2006.
Until 2016, South Korea was the biggest foreign investor in Vietnam, in which a significant investment has been used to develop real estate projects.
South Koreans’ first super real estate project worth billions of dollar in Vietnam
South Koreans’ first super real estate project in Vietnam is Daewoo’s Northern Hanoi project. Before the establishment of the diplomatic relations between two countries, Daewoo had established an affiliated company in Vietnam. The 7,500ha project which is expected to accommodate 1 billion residents in 2040 was planned and proposed by Daewoo after its successes of Sai Dong industrial zone and a hotel beside Thu Le Park.
Daewoo had requested reputed international consultants such as Bechtel, in collaboration with Nikken Sekkei, SOM, and OMA to draft a plan for this super project. The project was designed to divide into an 840ha part to the south and a 7,990ha area to the north.
However, Vietnam’s GDP at that time, when the Asian financial crisis occurred, and Daewoo itself had to face obstacles, was just US$500; therefore, despite being approved, this US$30-40 billion project has not been implemented. The northern Hanoi would be very developed if it were exploited more efficiently.
Daewoo declared bankruptcy in mid-1998 after the Asian financial crisis. This group had to face a series of obstacles, making its role as the primary developer of the project be transferred to the Government of Vietnam.
Despite series of difficulties, a part of North Hanoi project is still developed by Daewoo Engineering & Construction Co., Ltd. (Daewoo E&C). Daewoo is also the investor of Daeha Business Center in Kim Ma and general contractor of Daewoo – Cleve project in Van Phu, Ha Dong, with Starlake City project which was officially started in 2014.
The government has oriented the development of the North Red River region to become the centre of international commercial transactions, high-tech industry and modern urban development associated with preserving the value of Co Loa Citadel relic site and the natural and landscape values of Van Tri lagoon – Thiep river.