Real estate developer Vinhome JSC, a member of the Vingroup conglomerate, will invest VND23.2 trillion (US$981.2 million) in a housing project in the Northern city of Haiphong.

Vinhomes Smart City in Hanoi, a housing development by Vinhomes JSC. Photo courtesy of Vinhomes

The new urban area will cover an area of 241 hectares in Hoa Nghia Ward, Duong Kinh District, and Dong Phuong and Dai Dong communes, Kien Thuy District. The project was designed in 2022.

Authorities expect to allocate nearly 70 hectares to build a total of 1,300 units of affordable houses, villas, and private houses. The city also plans to build a 29-hectare shopping and commercial center and provide public services.

Construction costs are estimated at VND21.6 trillion (US$914 million), while land clearing and compensation costs are projected at VND1.6 trillion ($68 million).

Vinhomes will contribute about VND3.5 trillion ($148 million) to the project and seek other financings worth VND19.7 trillion ($833 million).

About 48,000 people are expected to live in the new urban area.

Tran Van Phuong, Director of the Haiphong Department of Natural Resources and Environment, said on July 14 that the city would first complete land clearance and compensation and then discuss land prices with Vinhomes.