Khang Dien (KDH) Sets Up VND 2.5T Subsidiary for HCMC BT Project

Overview

Khang Dien House (KDH) has established a wholly-owned subsidiary, Khang Phuc An, with charter capital of VND 2,500 billion to execute a BT (Build-Transfer) contract for the urban renovation project in Ma Lang and Cho Ga-Gao areas in Ho Chi Minh City. The project has a total investment of approximately VND 16,370 billion and will include a 35-story residential tower. This move marks KDH’s entry into a large-scale downtown redevelopment initiative.

Key Facts

• KDH’s board approved the establishment of Khang Phuc An with charter capital of VND 2,500 billion, 100% owned by KDH.
• The project covers two areas: Ma Lang (nearly 3.8 ha) and Cho Ga-Gao (0.43 ha) in wards Cau Ong Lanh and Ben Thanh, HCMC.
• Total investment is about VND 16,370 billion, including nearly VND 11,000 billion for compensation and resettlement support, and nearly VND 2,900 billion for construction costs.
• A 35-story, 135-meter mixed-use tower will be built at the intersection of Yersin and Vo Van Kiet streets, with 760 apartments.
• The Ma Lang area will include about 1,400 apartments, 93 low-rise houses, and a K-12 school.
• KDH will self-fund the project with 15% equity and 85% debt; payment will be via land funds and city budget after completion.
• The project is scheduled from 2026, with completion expected between September 2028 and March 2029.

What Happened

Khang Dien House (KDH) announced on August 20, 2026, that its board of directors approved the establishment of a new subsidiary, Khang Phuc An, with charter capital of VND 2,500 billion. This subsidiary will sign and execute a BT contract for the urban renovation project in the Ma Lang and Cho Ga-Gao areas, located in wards Cau Ong Lanh and Ben Thanh, HCMC. The decision follows the approval of the detailed planning (1/500 scale) for the Cho Ga-Gao area by the Ben Thanh ward People’s Committee.

The project involves a total investment of approximately VND 16,370 billion, with a significant portion allocated to compensation and resettlement support (nearly VND 11,000 billion) and construction costs (nearly VND 2,900 billion). The centerpiece will be a 35-story, 135-meter mixed-use tower at the intersection of Yersin and Vo Van Kiet streets. The project will be implemented from 2026, with completion expected between September 2028 and March 2029.

Market Context

KDH shares closed at VND 17,400 on August 19, 2026, on the HOSE. The company is a prominent residential developer in HCMC, known for projects in the eastern part of the city. This new BT project represents a strategic expansion into the central urban area, which is rare for KDH. The Vietnamese real estate sector has been recovering, with increased government focus on urban renewal and infrastructure development. This project aligns with HCMC’s efforts to upgrade aging urban areas, potentially enhancing KDH’s land bank and revenue pipeline.

Strategic Significance

This BT contract allows KDH to participate in a large-scale urban renovation project without upfront land costs, as payment will be made through land funds and city budget after completion. This model reduces financial risk and provides a steady revenue stream over the project’s lifecycle. The project’s prime location in District 1, HCMC, enhances KDH’s portfolio with high-value residential and commercial space. For long-term investors, this demonstrates KDH’s ability to secure complex government contracts, which could lead to further opportunities in urban development. However, the heavy reliance on debt (85%) and the lengthy timeline require careful monitoring of execution and cash flow.

What to Watch

• Progress on land clearance and resettlement, as compensation costs account for over 67% of total investment.
• Securing of debt financing and any changes in interest rates that could affect project costs.
• Milestones in construction, particularly the 35-story tower, and adherence to the 2028-2029 completion schedule.
• Any adjustments to the BT payment mechanism, including land fund valuations and city budget allocations.
• KDH’s quarterly financial reports to assess the impact of this project on leverage and cash flow.