Cavico Moves Forward in Development Near Hanoi

Cavico Corp. has announced that its wholly own subsidiary has received approval from Ha Tay People’s Committee to participate as the principal investor and constructor for Ngo Sai urban city, eleven miles southwest of Hanoi. Ngo Sai city lies on 6-lane Lang-Hoa Lac highway, which is currently under construction. The urban city is expected to take until 2013 for full buildout, at a total investment cost of $94 million. The deal is anticipated to net approximately $25 million. Ha Tay province will become part of Hanoi capital with the entire project ultimately within Hanoi capital’s boundary. Cavico is now part of a formal evaluation of the purchase and development of an additional 100 hectares within this government-approved expansion area.According to Cavico there is an increasing demand for real estate and office space in Vietnam.At the same time as demand for business space is booming, hotels have also seen good growth. As reported recently by CPN, Starwood is growing significantly in the Asia Pacific market, where it plans to increase its portfolio by more than 70 percent. Besides, China and Malaysia, third quarter 2008 will see the brand extend in Vietnam.