VinaCapital and Genting Group have permission to reclaim a large area in Quang Nam province to implement a multi-billion dollar recreation resort project.
Quang Nam People’s Committee has allowed a VinaCapital and Genting Group joint venture to reclaim 1,555 hectares in Thang Binh district, within the Chu Lai Open Economic Zone, about 70 kilometres south of Hoi An.
The announcement paves the way for the developer to start implementing its $4 billion South Hoi An tourism project, which was granted an investment certificate last December.
VinaCapital and Genting will have 12 months to reclaim the area, otherwise they will lose the project site, according to Nguyen Van Lua, deputy director of Chu Lai Economic Zone Management Authority.
South Hoi An is the largest tourism project in Quang Nam province and also Danang, home to many luxurious resorts. VinaCapital and Genting will pump $4 billion into the project.
The project consists of five-star hotels, resorts villas, gambling facilities for foreigners and 2,500 houses in maximum for sale or rent, according to Quang Nam People’s Committee. The developer can transfer parts of the project to other investors.
Lua said local authorities did not doubt over the developer’s financial ability but said VinaCapital and Genting “should start work soon”.
“Because the project occupies a large area, a slow implementation will raise questions among locals,” he said.
So far the developer has transfered $15 million to the provincial authorities for site clearance and resettlement work.
The developer has received commitments local authorities to support its resettlement plans.
Last year, the local authority revoked an investment certificate of the $4.15 billion Dragon Beach Resort in Dien Ban district, developed by United States-based Dragon Beach Group, as the developer delayed its deposit and site clearance work.
VinaCapital Group, which manages a $1.8 billion fund in Vietnam, is one of leading real estate developers in the country.
Meanwhile, Genting Group is a world leading developer of integrated resorts globally and has been voted Malaysia’s leading corporation and one of Asia’s best managed multinationals. Its pioneer integrated resort is Resorts World Genting which attracted 19.5 million of visitors in 2009. South Hoi An will be Genting’s first involvement in Vietnam.
