Van Don – True Story behind the Real Estate Frenzy

Diep Nguyen

15:38 09/04/2019

BizLIVE -

In total, there were less than 150 successful transactions in Van Don in the first three months of 2019 – the very small number compared to the rumors spreaded by many media channels.

Van Don – True Story behind the Real Estate Frenzy

Photo: Lao Dong Newspaper

Over the past one year, one of the top spots of Vietnam’s real estate market is Van Don, Quang Ninh province. Land price speculation really gets the attention of real estate investors and companies in the surrounding ares and even far away provinces like Bac Ninh or Hung Yen. It is rumored that the land prices in Van Don have been boasted mainly by the companies operaing there, not because of the real demand.
It is fair to say that Van Don has full potential to develop. Van Don has the new airport with the direct flights operated by Bamboo Airways. Van Don enjoys the strategic location of staying near to China and is considered to be the gateway for Chinese investors into Vietnam. 
According to Vietnam News Agency in one recent article, the northern province of Quang Ninh was set on beginning construction of the Van Don-Mong Cai highway in the first quarter of this year. 
About 97 percent of the land clearance work had been completed, with the remaining 3 percent mostly in Mong Cai city, where local households are refusing to hand over their land. 
According to Vu Van Kinh, Chairman of the People’s Committee of Mong Cai city, the locality is taking steps to complete the clearance work. 
The Van Don-Mong Cai highway will be constructed under the build-operate-transfer (BOT) and public-private partnership (PPP) contract at total cost of more than 11 trillion VND (474.4 million USD).
Quang Ninh People’s Committee signed the contract with the joint venture of Long Van Infrastructure Investment and Development Co.,Ltd, Van Don Sun JSC and Cong Thanh Transportation and Construction Corporation.
But despite all the glamors, Van Don real estate transaction is not really as impressive as misreported by some media channels. According to Nguyen Van Dinh, Vice President of Real Estate National Association of Realtors, the number of truly successful estate transactions in Van Don in the final quarter of 2018 and first quarter of 2019 was really minimal. In total, there were less than 150 successful transactions in Van Don in the first three months of 2019. 
Nguyen also revealed that the transactions mainly took place among small groups of investors, not in the massive level as rumored. He highly cautioned investors to be aware of the risks, not to bury money in Van Don like the bad stories that used to happen in other places.

DIEP NGUYEN

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