Japan’s Sumitomo Corporation and Vietnam’s BRG Group on October 6 broke ground for construction of a smart city project costing US$4.14 billion in the north of Hanoi, one of the biggest foreign-invested projects in the country so far.
Located in the outlying district of Dong Anh, the project is within the Nhat Tan-Noi Bai smart urban area adjacent to Noi Bai International Airport.
Designed by Hong Kong-based P&T Consultants Pte Ltd, the smart urban area is connected with Hanoi’s downtown districts by Nhat Tan Bridge.
Spanning 272 hectares, the township is part of a smart urban planning scheme stretching 11 kilometres from Nhat Tan Bridge to Noi Bai International Airport. It is divided into five phases which are expected to be fully completed by 2028.
BRG Group chairwoman Nguyen Thi Nga revealed at the groundbreaking ceremony that a 108-storey financial tower with a lotus design would become the highlight of the smart city and a financial centre of Vietnam and Southeast Asia as a whole.
On September 11, Dong Anh District authorities held a meeting with local residents to consult with them over adjustments to the project. Accordingly, 271 hectares of land of nearly 1,500 households will be taken back to make room for the project.
It will be executed in five phases between now and 2028.
Speaking at the meeting, Dong Anh District Vice Chairman Nguyen Xuan Linh said the smart city is a major national project approved by the prime minister. Therefore, the site clearance and compensation works have been done in line with prevailing regulations to ensure benefits of affected residents.
At an earlier meeting between the Ministry of Construction, Sumitomo Corporation and BRG Group on July 8, BRG Group Chairwoman Nguyen Thi Nga said Sumitomo, the third largest group in Japan, is BRG’s strategic partner. In late 2015, Hanoi City allowed a consortium of the two firms to do the detailed planning for the smart city project.
The project had been planned to get off ground in late 2018 but was later postponed for a year.
According to Do Viet Chien, general secretary of the Vietnam Real Estate Association, the location of the project is a prime site in the city.
The project will include hi-tech management systems in the energy, healthcare and education sectors and a water supply plant meeting international standard. The city will be an ecofriendly one, creating a peaceful and convenient living environment for residents.
Sumitomo Corporation will team up with BRG Group to develop the first phase on 72 hectares at estimated development cost of $1 billion.
Nga said the 108-storey financial tower would help Hanoi to become a modern capital in Southeast Asia and be on par with the capitals of developed countries in the world.
There will a metro line running from the downtown area via the project to Noi Bai International Airport with a new station planned to be built within the project's area. Sumitomo Corporation will implement the project considering a transit-oriented development centered on the new station.
Up to now, the smart city project developed by BRG and Japanese partners is the largest-scale foreign-invested project of Hanoi and one of the largest FDI real estate projects in the country.
The project area will be composed of hospitals, schools, disaster prevention facilities, security systems and commercial facilities, as well as lush greenery, water passage, and a main street lined with cherry blossom trees, and realize comfortable residential environment and community.
In addition, by introducing 5G, face recognition system and blockchain technologies, the area will feature sophisticated smart city services, contributing to the sustainable development of Hanoi.
So far, the consortium has completed legal documents and becomes ready to invest in the mega project.
The infrastructure would be interconnected with other quarters of Hanoi, enabling commuters to travel by bus and tram.
