Reported in The Star (30/1/07), Gamuda Land Sdn Bhd, a unit of Gamuda Bhd, has made its maiden foray into Vietnam with a proposed 800-acre fully integrated commercial development project. This development is complemented with a 250-acre botanic park, and positioned beside a 325-acre lake system.
Here, Gamuda is going into the project as a joint-venture partner with funds and expertise but it does not own the land “ as in Vietnam, foreigners are not allowed to own land.” As consideration, Gamuda is required to start first in improving and upgrade both the lake and botanic park before actual development can start.
Other details:

• Construction of the project, valued at US$1bil, is due to start by the end of the year.
• It should not take longer than eight years to complete.
• The project would comprise, among others, a convention centre, office towers, international five-star hotels and luxury properties. 
• The project is known as Yenso Park situated in Hanoi city
• The project is not merely a residential township, the intention is to turn it into a commercial urban centre.
• Gamuda had an 80% stake in the venture. The balance is held by state-owned Mechanical Engineering Services LLC, which owns the land. 

Further comments by Gamuda Land general manager (business development) John Yong:

• the payback for hotels is very fast, if done successfully and tied up with international hotel operators.
• for residential properties, payments are very front-loaded, hence the risk to the developer is minimal. The demand in Vietnam is so great that there is always a shortage of quality development there.
• the amount of foreign direct investment there is unprecedented.

The company are in discussions on a few more projects in Vietnam, including one of a similar scale as above project. 

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