Daewon-Cantavil: The Image of Vietnam-South Korea Cooperation

In 2006, South Korea was the largest foreign investor in Vietnam in terms of project number, with 203 projects worth US$2.4 billion. Many South Korean companies like Samsung, Hyundai, Orion and Kupi have chosen Vietnam as an investment destination. Daewon Group is no exception. With over 30 years experience building high-rise apartments, Daewon has constructed more than 30,000 luxury apartments in South Korea. Daewon-Cantavil Group was conferred a medal for building apartments by the South Korean President. Now, Daewon has a presence in Vietnam in various business fields like textiles, hotel, trade, construction and real estate. In real estate, Daewon-Cantavil has joined hands with a Vietnamese partner to set up Daewon-Thu Duc Housing Development Joint Venture Company. This Vietnam - South Korea cooperation affirms Vietnam’s rapid economic development and global integration. On the 15^th anniversary of Vietnam-South Korea diplomatic relations, and Vietnam Business Day in South Korea, Song Nhan interviewed Mr Yunam Howang, Executive Director of Daewon’s Overseas Business Team.

 

Vietnam is the strategic destination of our company. We have prepared meticulously for a long stay in Vietnam. Thus, we completed development steps in the initial period. During five years’ working in Vietnam, I found the Vietnamese people are friendly and quick-minded. Vietnam and South Korea, as well as China and several Southeast Asian nations have similar cultural traditions; hence, we faced no major difficulties establishing our business in Vietnam. However, we still encountered some hardship such as:

 

The weather in Vietnam is hard to work with. Especially, the long rainy season in southern region slowed the construction pace of projects, but luckily it didn’t affect their quality.

 

We are strong in design, especially interior design and construction engineering, and we are very flexible in applying our strengths and experience in the Vietnamese environment.

 

We also faced several hurdles in administrative and property ownership procedures. Competent organs were hesitant in making decisions because they feared repercussions for wrong decisions.

 

Our Cantavil Apartment, a complex of 390 apartments in An Phu new urban zone beside Ha Noi Expressway, was delivered to buyers from early 2007. Nearly 100 per cent of apartments have been sold, with half the customers foreigners. Apartments range from 75 square metres to 150 square metres. Daewon-Cantavil has invested US$40 million in this project. The company also injected US$26 million in a joint venture project with Hancic in Hanoi City, and will start the project by the middle of this year. We also have other apartment projects like the US$27-million Daewon Hoan Cau project, and six-block 21-storey Daewon Danang project. We are also applying for investment license for “Da Phuoc New town project” in Danang city to develop 207 ha with US$300 million investment.

The Vietnamese economy is in a prime period. The infrastructure system is being gradually perfected. In recent years, foreign investors have paid special concern to the Vietnamese property market. More and more leading foreign companies are arriving in Vietnam to invest in this field. The market prospect is very bright as demand for apartments and office buildings is sharply rising in the country. However, I want to stress that patience and experience are vital to survive and develop in this field. The State only needs to introduce clear investment policies and laws, and we can quickly develop and create a great leap forward, like other developed southeast Asian real estate markets such as Malaysia, Singapore, and Thailand. If foreign investors own their accommodations, they will feel that Vietnam is their second home.