$4bn tourism project for Quang Nam
Quang Nam People’s Committee announced it would allow the Genting-VinaCapital joint venture to develop the resort and entertainment project in Chu Lai Open Economic Zone (OEZ). Genting Group is a leading firm in developing integrated resorts globally while VinaCapital Group, which manages a $1.8 billion fund in Vietnam, is one of the top real estate investors in the country.
The project, which already got approval from Prime Minister Nguyen Tan Dung, is similar to the under-construction $4.2 billion Ho Tram Strip project in southern Ba Ria-Vung Tau province. Chu Lai OEZ Management Authority vice head Do Xuan Dien said Genting VinaCapital’s plan was substantially larger than other firms’ previous commitments. Once completed, Genting VinaCapital’s project will be the biggest tourism development in Vietnam’s central region that could put competitive pressure to other tourism facilities in Danang City, Quang Nam and Quang Ngai provinces. According to Quang Nam People’s Committee’s announcement, the project consists of five-star hotels, resorts villas, gambling facility for foreigners and 2,500 houses in maximum for sale or rent. Genting VinaCapital also has permission to invite secondary investors to develop segments of the project. The central region is home to several high-end tourism projects being operational or under construction.
Indochina Capital, another leading real estate investor in Vietnam, is developing the Hyatt Regency Danang Resort & Spa project in Danang. The company has also developed The Nam Hai resort in Quang Nam province’s Hoi An, which is the most luxurious resort in Vietnam. Silver Shores Hoang Dat Exceptional International Entertainment Joint Venture Company is developing an integrated entertainment resort in Danang. In 2007, the US-based Providential Holdings signed a memorandum of understanding with Quang Nam People’s Committee to study and establish a master plan for development of a big project in south Hoi An.
Under the blueprint, Providential will provide a master plan for facilities and services with auxiliary tourism, recreation, education, culture, spirituality, shopping, dining and finance projects. The plan will also feature a convention centre and multi-grade housing including villas, condos and apartment complexes.However, this project has not been approved. Many luxury resort projects with hundreds of villas that developers pledged to build on Danang and Quang Nam also remain on paper. The Genting-VinaCapital announcement came after Quang Nam People’s Committee revoked the investment certificate of $4.15 billion Dragon Beach Resort in Dien Ban district, developed by the US-based Dragon Beach Group, due to the developer’s poor financial capacity. Dien said VinaCapital and Genting “are two well-known groups which have financial ability and experience in managing tourism property project and electronic gambling”. “Furthermore, the developers seriously implemented requirements of the province, the Ministry of Planning and Investment and related government agencies during the project study process,” he said.
The group has been developing a Danang Beach Resort and World Trade Center Danang in central Danang City. Dien said Genting VinaCapital would have to pay a $5 million deposit before gaining an investment certificate for the project. The developer also committed to contributing $800 million of legal capital into four phases. Genting Group was recently voted as Malaysia’s leading corporation and one of Asia’s best managed multinationals.
