Trading house Sumitomo to develop $4.2 bil. smart city in Hanoi with local BRG Group
HANOI,NNA - Japanese trading house Sumitomo Corp. and Vietnamese conglomerate BRG Group Joint Stock Co. will develop a smart city in the northern area of Hanoi with construction work planned to start next year.
A ceremony was held in the Vietnamese capital on Sunday to mark an agreement between the two companies to form an equally owned joint venture for the project to build the smart city on a 272-hectare site in the Dong Anh district at a total cost of $4.2 billion. In the first phase of the project – which is aimed at creating an environmentally conscious community by utilizing Japanese technologies and equipment – houses and apartments will be delivered to occupants in 2022.
Dong Anh is located 10 kilometers from Hanoi’s city center and close to the Thang Long Industrial Park developed in Hanoi by Sumitomo in the 1990s. It is halfway between the city center and Noi Bai International Airport with a station on Metro line II of the Hanoi Urban Railway system due to be built there.
The ceremony was attended by Sumitomo President Masayuki Hyodo, BRG Chairwoman Nguyen Thi Nga, Vietnamese Prime Minister Nguyen Xuan Phuc and Japanese Ambassador to Vietnam Kunio Umeda.
“This will be an important project for the management of Sumitomo Corporation,” Hyodo said. In its real estate business overseas, Sumitomo moved into Asia in the 1970s and launched operations in the United States in the 1980s. But this is the company’s first overseas project to develop a smart city. Sumitomo is set to promote “social infrastructure” development under its medium-term business plan, and Vietnam may be the first model case abroad under this initiative.
The smart city development will proceed in five phases. The city of Hanoi is currently procuring 73 hectares of land for the first phase and, after the acquisition of land, Sumitomo and BRG will set up a joint venture to move ahead with the development project.
The first phase will focus on construction of high-rise apartments, town houses (low-rise condominiums), shop houses (combinations of houses and stores) and other buildings including schools and hospitals. The second phase will also feature dwelling houses to develop local infrastructure for residents. Office buildings and large-scale commercial facilities will be built in the third phase.
There is no specific model for city planning in the new project. Hyodo said, “We will aim to create a new city that meets the needs of Vietnam.” Sumitomo plans to cooperate with other Japanese firms in providing 5G (fifth generation cellular network technology), disaster management facilities, security systems and other equipment.
“We want to provide new services based on digital technologies,” Hyodo said. Face recognition and blockchain technologies are expected to be utilized. The new city will be built as a sphere of living connected by trains, buses and other public transport.