The New Land of Billion-Dollar Projects
In the context of limited land funds in Ho Chi Minh City, real estate businesses continue to focus on neighboring provinces. While Binh Duong and Dong Nai have been bustling with the presence of many big names in recent years, it is only recently that Long An has truly become a “battlefield,” with many giants paying attention. The investment by real estate giants in billion-dollar projects in Long An is creating expectations for a new playground in a new real estate cycle.
Recently, big players such as Vingroup, Ecopark, MIK Group, VPBank, BIM Group, Eurowindow… have simultaneously entered the Long An market, attracting attention.
The first shot that made a big splash at the beginning of 2024 must be mentioned as the joint venture between Vinhomes and Vietnam Investment Group (VIG), the only unit registered to implement the Phuoc Vinh Tay New Urban Area project in Can Giuoc district, Long An province. This is the largest-scale project in Long An province up to now. The tentative cost of implementing this project is up to VND 80,079 billion (equivalent to over USD 3.7 billion). The project has more than 7,000 adjacent houses, nearly 8,200 villas, about 13,440 apartment units, and 2,370 low-rise residential relocation houses.
Meanwhile, in 2023, this province continuously “welcomed eagles back to build nests.” Specifically, in May 2023, the People’s Committee of Long An province approved the preliminary evaluation of the capacity and experience of the consortium of D&B Investment and Development Co., Ltd. and Ecopark Corporation to carry out the eco-tourism urban area project in Thanh Phu commune, Ben Luc district, Long An province. The project has a total investment of nearly VND 17,000 billion.
Infrastructure is being invested as a “springboard” for Long An to attract the attention of real estate giants. In terms of potential, this place is expected to be a big playground with the birth of new real estate products, diverse types, and reasonable supply sources for Ho Chi Minh City. Photo: Illustration.
Similarly, BIM Group signed a memorandum of understanding to study investment and development in real estate, renewable energy, and agriculture in Long An.
Phu My Hung Development Co., Ltd. also signed a memorandum of understanding to study investment and development of international standard urban, commercial, and service areas in Long An.
VPBank and MIK Group Joint Stock Company signed a memorandum of understanding to study investment in transportation infrastructure projects in the province. In which, these 2 investors proposed to invest in the Belt Road 4 Ho Chi Minh City that passes through Long An province.
In October 2023, the People’s Committee of Long An province decided to approve Vinhomes Urban Development Joint Stock Company – a subsidiary of Vinhomes, as the investor to implement the Hau Nghia – Duc Hoa New Urban Area project in Hau Nghia town, Duc Lap Thuong commune, and Tan My commune, Duc Hoa district. The project has a total investment of about VND 28,258 billion.
In late August 2023, the People’s Committee of Long An province approved the Consortium of Melinh Plaza Thanh Hoa Commercial Group – Vinh Trading Center Joint Stock Company – Eurowindow Nha Trang Tourism Corporation to be the only investor that meets the requirements regarding capacity and experience that is registered to implement the New Urban Area project in Ward 4 and Ward 6, Tan An City. The urban area covers an area of over 137 ha, with a capital of over VND 7,118 billion.
Previously, a series of businesses such as Nam Long, Becamex, Van Thinh Phat, Him Lam, Cat Tuong, Tran Anh… have also flocked to Long An, developing large-scale projects.
Revealing the Reason Behind the Appearance of the “Wave” Market According to the Giants
The moves of big players have become a catalyst for the Long An real estate market to return after a period of silence.
According to the observations, there are currently some projects in Long An following the market “wave.” For example, West Land General Agent is launching the Saigon West Village sub-area, which is part of the overall eco-urban, commercial, and tourist project covering 220ha by EcoPark Corporation. This is also a rare project that has the necessary legal conditions to transfer ownership immediately to customers in the primary market.
In fact, it is not a coincidence that real estate giants choose Long An as their “destination.” If this place is called a new land, it is not entirely true, but it is entirely correct to call it a potential land of the Ho Chi Minh City satellite area.
With 70km adjacent to Ho Chi Minh City, Long An is considered a “buffer” connecting Ho Chi Minh City with the Mekong Delta region. This is where many potentials converge to develop, including the real estate sector. However, for many years, its potential has still been “neglected” in the narrow garment called infrastructure. Until now, Long An has only truly attracted attention thanks to a series of moves from big businesses and the investment in transportation infrastructure projects.
After a period of a lack of diversity in real estate projects, Long An – a place with a large land fund – is being chosen by real estate giants as a “destination” with large-scale projects. Photo: Illustration.
In addition, Long An has strengths in seaports and industrial parks. With the goal of becoming the industrial development province of the Southern key economic region, Long An has planned industrial development with an area of 15,000 ha, including 37 industrial parks and 59 industrial clusters approved . In which, 16 industrial parks have been put into operation with an occupancy rate of over 68% and 14 industrial clusters with an occupancy rate of about nearly 90%. This is one reason why big players pay attention to this area.
If it is compared between the satellite provinces of Ho Chi Minh City, Long An’s potential can be seen. Binh Duong or Dong Nai are long-standing developed areas, with a system of well-planned infrastructure, so it is not easy to find land funds, and prices are no longer cheap. Meanwhile, although Long An is not far from Ho Chi Minh City, land prices are still soft, and there is a large land fund; it is convenient to connect transportation through existing routes such as Ho Chi Minh City – Trung Luong expressway, Ben Luc – Long Thanh expressway, National Highway 1, National Highway 50, National Highway 62, National Highway N1, National Highway N2. In fact, real estate giants have seen this potential when deciding to invest in projects here.
Sharing recently, Mr. Truong Van Liep, Director of the Department of Planning and Investment of Long An Province, said that in recent times, Long An province has achieved remarkable results in socio-economic development. Specifically, the economic scale ranks first among the Mekong Delta region, accounting for over 13% of the region’s total scale; the economic structure changes rapidly and breakthroughly in the industrial areas. To create a foundation for implementing the objectives, the province is focusing on completing a series of key transportation projects and synchronously investing in inter-regional connectivity transportation projects with the provinces and cities in the Mekong Delta region, Ho Chi Minh City, and the provinces and cities in the Southeast region. At the same time, connect smoothly between localities in the province to facilitate businesses to invest in Long An, connect and facilitate trade, import and export, shorten time, costs, and increase competitiveness.
Having once assessed the potential of Long An, Mr. Tran Khanh Quang, a person with many years of experience in the real estate sector, said that among the satellite areas of Ho Chi Minh City, Long An has close connectivity with Ho Chi Minh City. In which, Duc Hoa and Ben Luc are areas with very good real estate development. When big players appear, it is ensured that this area will create urban areas, attracting buyers to come. “When choosing real estate in a certain area, buyers need to consider what the “shield” in that area is. The appearance of big players is an opportunity for businesses, individual investors to look in the long term,” Mr. Quang emphasized.
According to experts, Long An is currently pulling big players due to support from infrastructure and strong development of industrial real estate leading to the development of residential real estate. The recent signals about transactions and projects are creating a colorful picture for the real estate market here.
The latest report from Batdongsan.com.vn shows that the demand for searching Long An real estate is showing positive developments with many types of properties having good growth in interest. Specifically, the number of searches for buying apartments and land has increased by 13% and 10% respectively; the demand for buying villas and townhouses has increased by 3%; the demand for buying private houses has increased by 6%, and the demand for selling warehouses has increased nearly 9% compared to the previous month.
According to this report, Duc Hoa and Ben Luc are the two markets that real estate investors in Long An are most interested in, with growth rates of 12% and 15%, respectively, in real estate searches.
However, the supply of real estate in the Long An market is still quite limited. The projects/areas that “giants” are eyeing are still in the preparation, investment promotion stages. Therefore, according to experts, investing money in Long An real estate needs to have a vision of 3-5 years, which will be excellent.
