Quang Nam resort still slowed by negotiations

The development of VinaCapital’s $4 billion integrated resort in central Quang Nam province remains delayed as negotiations continue with a prospective partner to replace Genting Malaysia Berhad.

A management authority source of the province’s Chu Lai Economic Zone, where the project is located, said VinaCapital had introduced the local authorities a new partner for developing this project. But the negotiations on merger and acquisition issues as well as the project development have not been completed.

The source declined to identify the new partner because of the confidential negotiation process. “We expect they will be completed within the first quarter of this year,” said the source.

“The withdrawal of Genting last September has affected the project development progress,” he added. “Absolutely, VinaCapital could not implement the project as initial schedule.”

VinaCapital and Genting Malaysia Berhad received an investment certificate for developing the integrated resort in 2010. The project covers an area of 1,555 hectares and comprises hotels, luxury villas, residential apartment buildings and electronic gaming facilities for foreigners.

According to the investment certificate, VinaCapital held an 80 per cent stake of the project and Genting taking the rest. But last September, Genting Malaysia Berhad, one of Asia’s largest resort developers, announced the cessation of its collaboration in Vietnam without any official explanation.
VinaCapital should push the project development ahead soon, the source said, especially since the local authorities had completed site clearance on 100ha.

Previously, Quang NamProvincial People’s Committee revoked the investment certificate of a $4.15 billion integrated resort registered by the US’ Dragon Beach Group because of its long delay.
VinaCapital’s $4 billion integrated resort is the largest licenced tourism property project in Quang Nam and it is among four largest ones in Vietnam, along with Ho Tram Strip and Saigon Atlantis in southern Ba Ria-Vung Tau province, and another high-grade tourism complex in central Phu Yen province.

Among of them, the $4.2 billion Ho Tram Strip project developed by Canada’s Asian Coast Development Limited, is expected to be opened this month with the first resort MGM Grand Ho Tram Beach. The resort features two hotels, a 5,800 square metre gambling entertainment area with 90 live table games and 500 electronic gambling machines.

Bao Tram (vir.com.vn)