Phu Quoc eyes future

Fun in the sun: Phu Quoc is aiming to become a major regional tourism destination

Kien Giang province will launch a charm offensive in Ho Chi Minh City on May 9 to court investors with incentives endorsed recently by the central government. More promotion campaigns are due to be held later in Japan, Europe and the US.
Thai Dac Liet, director of Kien Giang Planning and Investment Department, said the conference in the second city would call for investors to build planned hotels and resorts, infrastructure projects such as transport facilities, electricity supplies, waste treatment and a hospital not funded by the state budget.
Liet said the province had approved 45 projects in Phu Quoc, covering 1,525 hectares of land. Of these, 12 projects with registered capital of $60 million are under construction in line with the island’s general master plan.
He said another 100 foreign and Vietnamese investors have sought permission for tourism and infrastructure projects in the island. Ten investors expressed interest in infrastructure projects such as the airport, roads and electricity supplies.
“The province will make final decision on these projects when their development plans are approved,” said Liet.
In addition to the current airport, the government has approved a new international airport in Phu Quoc. The airport will be built on 800ha in Duong To commune at the cost of around $180m and with annual capacity of more than 2.5 million passengers.
The government said it would set aside over 3,800ha of land on the island to build 13 large tourist complexes, a host of smaller resorts, four golf courses and a racetrack.
A number of incentives for investors in Phu Quoc were approved during the last year, including a corporate income tax of 10 per cent, 50 per cent high-income tax reductions, and permitting foreigners and overseas Vietnamese to buy houses.
Visa requirements will be waived for foreign tourists and investors in Phu Quoc.
These incentives aim to lure investors to build the unexploited island into a high-class tourist destination that can attract up to three million tourists by 2020.
Kien Giang provincial party chief Truong Quoc Tuan said the Phu Quoc Investment and Development Management Board would be set up soon, which would monitor investments on the island.
Tuan said the province was working out specific compensation plans and building resettlement areas to speed up site clearance.
“Our viewpoint is to allocate land for construction right after projects are approved,” he said.
Of the potential projects on the island, Ho Chi Minh City-based TTC Company is seeking foreign investors for the Vem Bay project in Ganh Dau commune.
The 104ha development will develop the Vem Village featuring 55 villas of 1,300sqm each, a five-star Vem resort with 115 villas, and a Vem Villa Complex comprising 44 villas, where owners can contribute to the resort’s rental pool.
The company estimated the project will cost over $200m to build.
Other foreign groups such as Victoria Hotels & Resorts, Life Resorts, and La Perla Living are scouting for investment opportunities on the island.
Covering around 700 square kilometres, Phu Quoc is just one-to-two hours flight from tourist hubs in Southeast Asia such as Singapore, Bangkok, Siem Riep and Kuala Lumpur.
There are five to six flights a day from Ho Chi Minh City to Phu Quoc at present.



No. 758/April 24-30, 2006