Vietnam Building Boom

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As Vietnam rapidly transitions into a more urban society, entirely new cities are under construction across the country. Korean builders are a big part of this booming sector. They aim to not only build apartment homes in Vietnam but also export the Korean style new city model.

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Construction of a new city is taking place in downtown Hanoi in Vietnam. A 1.5 by 1.2 kilometer site will house homes, commercial buildings and public facilities including a school. This is a Korean style new urban model. Some 2.3 trillion won will be invested into the project by 2023. The Korean builder in charge is not only tasked with the construction but will oversee all stages of planning, financing and sale.

[Soundbite] Jeon Dae-am(Daewoo E&C's THT Development Co. in Vietnam) : "We provide a well organized infrastructure and incorporate a uniquely Korean architectural culture to Hanoi."

The urbanization rate of Vietnam is currently around 35%, which is relatively low. But as the pace escalates due to industrialization, the construction demand for new urban towns is on the rise. This new urban area called Thu Thiem is in Ho Chi Minh City. Also here, a Korean firm has won development rights for a key district. The firm will invest 1.2 trillion won to build a hotel and multipurpose buildings on a site as large as ten soccer fields.

[Soundbite] Baek Won-jae(Lotte Asset Development, Vietnam Branch) : "Based on our experience in high-class housing development, we are working to have the site become a top landmark facility in all of Ho Chi Minh City."

Local industry officials forecast that demand for high end housing in areas with urban infrastructure will increase as wealthier Vietnamese people grow in number.

[Soundbite] Alex Crane(Cushman & Wakefield)

The culture of Korean-style high-end housing is becoming a staple export to new urban towns in Vietnam.