Sun Group, Vingroup and the Hanoi Export-Import Company (Geleximco) will provide the finance for Hanoi to prepare a master plan for the Red River renovation project.

To accelerate planning the Hanoi People’s Committee has agreed to terms with the three investors over finance and will also engage international consultants. “There is no specific plan as yet because it is only a policy of city authorities,” a representative from Sun Group told VET. “The plan will be prepared after all procedures are completed.”

The Hanoi People’s Committee recently issued Notice No. 491 on a review of implementation of the master plan for the Red River. The Hanoi Department of Planning and Architecture (DPA) has been assigned to establish a planning steering committee.

Prime Minister Nguyen Xuan Phuc issued an official note in May regarding the draft blueprint for a transportation and hydroelectric project on the Red River, affirming that the government has not begun the approval process as yet as there is no adequate legal foundation regarding such approval.

The government also asked the Ministry of Natural Resources and Environment to coordinate with relevant ministries and sectors to prepare a master plan for the Red River to ensure sustainable development.

Planning preparation must be conducted carefully and involve localities, scientists, research organizations and agencies, the Vietnam Fatherland Front, and other social and political organizations representing the people living in the Red River area.

Hanoi unveiled a plan in 2007 to develop an urban area along the Red River’s banks, with investment of $7 billion. The plan outlined residential zones spread over 750 ha for some 97,000 households. Another 750 ha on the river’s banks was earmarked to develop public facilities and commercial and service centers.

It was co-drafted by a team of experts from the South Korean capital of Seoul and the DPA because of similarities in the geographical and natural conditions in the two cities. The resulting plan remains only on the drawing board.

In May, the Xuan Thien Company, a subsidiary of Vietnam’s Thai Group, asked the government for permission to open a water route and set up six hydropower plants on the Red River.

The company was seeking government approval to invest VND24.5 trillion ($1.1 billion) in the project. The Ministry of Planning and Investment has submitted the proposal to the Prime Minister for consideration.

The Hanoi-based Geleximco was established in 1993 and specializes in trade business development and services, banking and finance, and information technology. It is also one of the leading developers in the real estate sector in the north of Vietnam and has charter capital of VND6 trillion ($264 million) and a growth rate of over 10 per cent per year.

It has been a major shareholder in the An Binh Investment Group, a real estate and financial investor, for eight years, and is a strategic partner of the Vietnam National Seaproducts Corporation, after acquiring 35 per cent at its initial public offering in 2014.

VN Economic Times