HONG KONG (Dow Jones)--A consortium led by Hong Kong-based conglomerate Sun Wah Group received an investment license Sunday from Vietnam authorities for Ho Chi Minh City's largest property development project, with a total investment of US$300 million, according to Sun Wah Group's chairman.

Vietnam Land SSG Ltd., the joint venture between Hong Kong and Vietnam companies with Sun Wah Group as the single largest shareholder, with a stake of 14%, has been licensed to develop a commercial and residential project in Ho Chi Minh City, the country's business center.

"We are optimistic on Vietnam development and believe Vietnam is on the track of China's success in opening up the economy," Sun Wah Group Chairman Jonathan Choi told Dow Jones Newswires in an interview.

The investment license that Vietnam Land SSG Ltd. received allows the company to develop a commercial and residential project along the Saigon River.

"It is one of the very few cases in which foreign partners have been involved in developing a residential project for sale," Choi said.

Vietnam generally doesn't permit foreign investors to own land, so previous projects involving foreign investors were usually for rental purpose, he added.

"We've invested in Vietnam for more than 30 years with an amount of up to US$100 million and have established a good relationship locally, that's why we manage to do this deal," Choi said.

"The initial investment for this property project is about US$156 million but the total investment will be up to about US$300 million," he added.

The project, to named "Saigon Pearl," will offer more than 2,000 apartment units and 250 offices, involves an area over 10 hectares and will require the building of eight twin apartment towers of 37 stories each plus four office buildings.

"The project should have double-digit returns - a level that's comparable to that of property projects in China," Choi said.

There are three stages for the Saigon Pearl project, expected to be completed within five years. The first stage, building two twin apartment towers, is scheduled to be finished in two years.

"The professionals involved, e.g. architects, interior designers, will all be hired from Hong Kong to ensure an international construction standard," Choi said. The complex is expected to be the tallest building in Ho Chi Minh City, he said.

Saigon Pearl is Sun Wah Group's second large-scale property investment in Vietnam. The company jointly developed the Sun Wah Tower, a 22-story office building, in Ho Chi Minh City in 1993.

"China, Hong Kong, Macau and Vietnam are the four locations that we're interested most in terms of our property operation," Choi said.

"In China and Macau, we prefer to buy land to develop," Choi said. "But in Hong Kong, Thailand and Malaysia, we're more interested to buy the existing properties."

Choi, which already controls two listed companies - the Hong Kong SW Kingsway Capital Holdings Ltd. (0188.HK) and the Toronto Kingsway International Holdings Ltd. (KIH.T), said the firm may list the technology or media units in two to three years.

"We may spin off the technology or media units but we have no plans to list the other operations or the group itself," he said.

Founded in 1957, Sun Wah Group is a conglomerate with businesses in seven principal areas - seafood and foodstuff, real estate, financial services, infrastructure, technology, media and environmental protection.

Choi said the net asset value of Sun Wah Group is over HK$10 billion and it has hired more than 4,000 employees in Hong Kong, Macau, mainland China, Southeast Asia, Canada, the U.S. and Australia.

oh lord my chinese fellows are investin in vietnam... that's not cooll

Hahaha it's all good my friend.

u ain't my friend.. little viet.. ok..