Paradise is up for grabs
Paradise is up for grabs
The 220-hectare prime real estate will be available for new investors next year once the liquidation of Vung Tau Paradise in the southern Vietnamese province of Ba Ria-Vung Tau is completed.
According to the Ba Ria-Vung Tau Department of Planning and Investment (DPI), Vung Tau Paradise resort’s investment licence will expire at the end of April. As such, under the Law on Investment, Vung Tau Paradise Company must complete its liquidation process within the next 12 months.
Vung Tau Paradise Company, a joint venture between Vietnam’s Vung Tau Intourco Resort JSC and Taiwanese firm Paradise Development and Investment, was granted its investment licence in 1991 to develop the resort. Of the estimated total investment capital of $97.2 million, the Vung Tau Paradise project has so far disbursed over $40 million.
The joint venture said it had also asked for the local authorities’ approval for extending its licence but the local authorities seemed to prefer seeking other potential investors to develop the resort. Potential investors are eagerly awaiting the new criteria set by the provincial people’s committee to compete in the liquidation process so they can acquire this much-sought-after plot.
Since coming into operation, the resort has barely generated any profit. The firm failed to make good on its commitments to construct several of the development’s components, including a 500-room hotel, a theatre, and an entertainment playground. Although it did manage to follow through on its 27-hole golf course, the local authorities would like to transfer the project to more competent investors.
Le Hoang Hai, DPI’s deputy director, said that Ba Ria-Vung Tau was one of the most attractive tourism and investment destinations in Vietnam, with many international resorts projects, such as the $4.2-billion Ho Tram Strip resort complex by Asian Coast Development, and the $4.1-billion Saigon Atlantis Hotel project by Winvest LLC. However, while the Ho Tram Strip complex has so far disbursed $1 billion, Saigon Atlantis Hotel remains at the land clearance and compensation stage after ten years.
“The cleared 220ha area, which is the only remaining land in the province, will be attractive for investors looking to develop resort properties in Ba Ria-Vung Tau. The local authorities are establishing criteria for investors based on the tourism development strategy for the 2016-2020 period. We expect new investors to have experience in developing large and high-quality resorts according to international standards, so they can help the province promote its tourism sector,” he added.
