Gamuda plans to develop RM3.35bil complex in Vietnam

Posted on | August 15, 2007

By BLOOMBERG

KUALA LUMPUR: Gamuda Bhd plans to build US$964mil (RM3.35bil) worth of projects in Vietnam’s capital, a Hanoi government official said.

The company would build a US$711mil complex on a 327ha site that would include a hotel, convention hall, villas and apartments, as well as a US$253mil water-treatment factory to supply the development, said Trieu Dinh Phuc, director of planning and investments.

Gamuda has asked for an additional 73ha for the 50-year project, according to Phuc.

Asian developers, including SP Setia Bhd, are expanding into Vietnam to benefit from economic growth.

Vietnam’s gross domestic product may grow as much as 8.3% this year, outpacing 5.6% expansion in South-East Asian economies, the Asian Development Bank said this month.

The project may more than double Gamuda’s sales in Vietnam to RM8bil from RM3.5bil, Danny Goh, a Kuala Lumpur-based analyst at Credit Suisse, said in a report.

“We have turned more bullish on the stock,” Goh said in the report.

He raised his price estimate on Gamuda to RM10.60 from RM9.50 and kept his “outperform” rating.

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