HCMC – La Veranda Joint Venture Co., the owner of La Veranda Resort and Spa on Phu Quoc Island, on Wednesday clinched a deal with South Korea’s B.B. Dai Minh Corporation to jointly develop a hotel in HCMC.

“We will be investing together with B.B. Dai Minh for a new Ibis hotel in District 7,” said Jean-Pierre Gerbet, general director of La Veranda Joint Venture Co.

He told the Daily after the signing of the deal that the French company had invested in Viethan Hotel Joint Stock Co., which was set up by B.B. Dai Minh Corp. to develop the 3-star Ibis Saigon South Hotel project.

Lee Young Hoon, chief executive officer of B.B. Dai Minh Corp., said Viethan had planned around US$11 million for the hotel project and that this investment would be contributed by B.B. Dai Minh and La Veranda depending on their stakes in Viethan.

The Ibis Saigon South Hotel on Hoang Van Thai Street in the new urban town of Phu My Hung is scheduled for groundbreaking in March next year and opening in February 2012.

Lee said the company should have begun work on the hotel in 2008 but had had to delay it because the tourism industry had felt the pinch of the economic downturn.

B.B. Dai Minh was waiting for more major infrastructure and commercial projects inside and outside District 7 to go online to ensure that business of the Ibis hotel will fare well when it is up and running.

Gerbet also attributed the delay to the re-designing of the hotel project as this work took at least six months.

“I think 2010 will be a good time for us to begin construction on the Ibis hotel project,” Lee said. The hotel will have some 170 rooms as well as meeting rooms, a café, gym and bar, among others.

B.B. Dai Minh has hired Accor Group to manage the hotel with Ibis, which is one of the hotel brands of the international hotel operator. Accor now manages 11 hotels across Vietnam with such higher-grade brands as Sofitel, Novotel, MGallery and Mercure.

The Ibis Saigon South Hotel is expected to be the first operational property in Vietnam to bear Accor’s Ibis brand.
La Veranda is also teaming up with B.B. Dai Minh Corp. for other property projects in Vietnam, including a high-end resort on Phu Quoc Island off mainland Kien Giang Province and a 250-hectare LA Golf and Villas project in Long An Province in the Mekong Delta

A urban area with modern life styles and convenient services will be set up in the land to the west of Le Hong Phong Street, Nha Trang. The new urban area, which comprise two projects of Le Hong Phong 1 and Le Hong Phong 2, is named Happy Land.

Le Hong Phong 1 Project, which covers an area of 598 hectares to the west Le Hong Phong Street, located in Phuoc Hai Ward, Phuoc Long Ward and Vinh Thai Commune, Nha Trang, will be invested nearly VND372.6 by Ha Quang Real Estate Petroleum Finance Joint Stock Company. Le Hong Phong 2 Project, which covers an area of 598 hectares in Phuoc Hai Ward and Vinh Hiep Commune, Nha Trang, is estimated to be poured VND598.9 billion by Ha Quang Real Estate and Travel Joint Stock Company.

Calling the two projects Happy Land, the investors plans to build a modern and environmentally-friendly urban area with an original and impressive design. They hired Peddle Thorp & Walker Company from Australia to make 1/500 planning for the two projects and have submitted it to the People’s Committed of Khanh Hoa Province.

According to the planning, Happy Land is designed as a complex with many public works such as schools, hospital, parks, habour, commercial and financial centers, leisure centers, parks, houses, villas and apartment buildings. It is expected to supply accommodation for about 33,000 people. Especially, it will have international schools at three levels of primary, secondary and high school. Students of these schools will be taught by progressive methods, modern science and technology and experienced Vietnamese and foreign teachers. Additionally, an international hospital with high-class 300-350 beds and good doctors will be set up in the urban area.

From 25 to 27, November, Ha Quang Real Estate Petroleum Finance Joint Stock Company did compensation to clear the ground for Le Hong Phong 1 Project . VND29 billion has been paid to 95 households with 11.2 ha in land which is agricultural, being averagely compensated VND250,000/ sq. m. Besides, the households were given compensation for their houses and farm produces and supported to change their occupations.

Vinaconex 15 Joint Stock Co officially started the project of Vung Huong Resort Complex in Do Son Tourism Area, Hai Phong City with the total investment capital of 500 billion dong.

The resort would be built on a site of 21,427 square metres including 90 villas; each villa has an area of 180-298 square metres, and 100-square-metre semi-detached resorts. The project is expected to be finished in 2011.

Vinaconex 15 started receiving application forms for purchasing the villas and semi-detached houses from November 23.

Vietnam has attracted $12.54 billion in foreign direct investment (FDI) this year, a year-on-year decrease of 78.6%, with two thirds of the money pouring into the tourism and real estate sectors.

The Ministry of Planning and Investment’s Foreign Investment Agency said $7.67 billion had gone to 583 newly-licensed projects in Jan-Sep, down 85.7 percent year-on-year, and the remaining $4.86 billion to 168 operational projects, up 7% year-on-year. Hotel and restaurant services have set a record with almost $4.57 billion followed by real estate with $3.65 billion and processing and manufacturing with $2.53 billion.

In hotel and restaurant services, $758 million has been invested into 22 newly licensed projects and the rest into seven existing projects, according to the department. Foreign investors believe that Vietnam’s real estate market will warm up gradually by the end of this year or early next year. However, they think it is time for investors to learn about consumers’ tastes and make investments.

The processing and manufacturing sector has provided $2.53 billion in capital, including existing projects that have been allowed to raise their investment by $608 million.

According to the agency, with 24 newly-licensed projects and 11 projects with increased capital, the US tops the list of 38 countries and territories investing in Vietnam this year followed by South Korea, Hong Kong, the UK and Singapore.

Ba Ria-Vung Tau province is leading the country in FDI attraction with $6.66 billion in 15 projects, followed by Binh Duong province with $2,45 billion in 103 projects, HCM City with $1.l4 billion in 267 projects and Hanoi with $383 million in 200 projects.

This year’s FDI disbursement is estimated at $7.2 billion, 88.9 percent of the amount disbursed in Jan-Sep of last year. This puts Vietnam on track to achieve $10 billion in actual FDI inflow this year.

Vietnam targeted new pledges of $20 billion this year, 70 percent less than last year’s $66,4 billion. Foreign investment inflows, along with overseas remittances, are a key source of foreign exchange helping Vietnam offset its trade deficit.

New pledges this year have plunged 85.7 percent from last year to $7.67billion, but Phan Huu Thang, head of the agency, was quoted as saying this was still a positive figure, given the global economic crisis.

BANGKOK – The Mekong Tourism Coordinating Office included an interesting story, sourced from the Vietnam News, in its latest newsletter.

The item revealed that ?Phu Quoc Island will become an economic and “eco-tourism hub” by 2030, subject to agreement by locals.

Regional planners say they plan to develop key areas of Phu Quoc including urban, forest protection, tourism and transportation and expect a significant population increase from the current 100,000 people to 530,000.

Phu Quoc is the largest island in Vietnam covering an area of 59,300ha with two towns, Duong Dong and An Thoi, and eight communes. It is known for its pristine beaches and forests.

According to the report, authorities say 40,000ha will be reserved for urban areas.

The main tourism areas will be located in the so-called “golden land”, and include the island’s best beaches.

Other projects would include ports, industrial parks, golf courses and a casino.

All neatly wrapped up, it seems, under the guise of an eco tourism project. (travelmole)

DANANG – The management unit of Dien Nam-Dien Ngoc new urban area and Chi Thanh Co. Ltd. inaugurated the first phase of the Bong Lai high-class villa area in Quang Nam Province last weekend.Chi Thanh Co. began building the project last year with an investment of nearly VND330 billion. Covering 26 hectares, the project includes 15 villas priced from US$0.8 to US$3 million each, restaurants and tennis courts.

In the 2010-2011 period, the investor plans to build 40 lake-side villas on 30 hectares. The third phase, during the 2011-2013 period, will include 35 villas and a 400-room hotel. (Saigon Times)

MALAYSIAN developers with property projects overseas, especially in Vietnam, are getting ready to proceed with their project launches after an almost year-long delay brought on by the global financial crisis.

Vietnam has attracted one of the largest Malaysian participation. Local developers with projects there include SP Setia Bhd, Gamuda Land Sdn Bhd and Berjaya Land Bhd.

According to SP Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin, the market is seeing a rebound in terms of property demand as sentiments improve and the Vietnamese begin switching out of more conservative asset classes like gold.

“The macroeconomic environment also seems to be more supportive of this, with inflation falling to a seven-year low of 2% and with positive impact on financing rates, although most property buyers in Vietnam do not require bank financing. Limited launches by property developers during the crisis has also helped in terms of limiting supply – resulting in a more favourable supply-demand scenario,” Liew tells StarBizWeek.

Despite the global crisis, he says the fundamentals of the supply-demand dynamics for Vietnam’s property market remain intact.

“Supply of well-planned dwellings are on the low side. On the other hand, the well-known and much spoken about demographics reality of a 86 million strong population with a high youthful proportion will ensure a healthy demand side.

“This is against a backdrop of rising incomes of a generally hardworking and homogenous populace.

Post-crisis, going by our own project and other launches, demand is encouraging. It is interesting to note that even second-home vacation dwellings launched in the last quarter were very well taken-up. This shows the kind of appetite that still prevails in Vietnam,” he adds.

Houses priced below US$100,000 are still in high demand as 70% of the population are below 35 years old and have yet to own a home.

Tan Sri Liew Kee Sin … ‘The fundamentals of the supplydemand dynamics for Vietnam’s property market remain intact.’

Liew says Vietnam continues to have a shortage of well-planned retail space and strategically located projects of decent size.

“Where applicable, we will have such retail-space offerings in our projects. Both EcoLakes and EcoXanh will offer such retail components,” he notes.

Liew says although the global financial crisis has somewhat delayed the company’s regional expansion plans in Vietnam, “the response to EcoLakes’ first launch has been very encouraging in current market conditions and we hope to ride on the back of the strong sales momentum to resume our projects there.”

Phase 1, called the Garden of Splendor, comprised 257 terraced houses while phase two will have 58 semi-detached houses and villas.

Its first two phases, comprising 257 terraced houses in phase one and 58 semi-detached houses and villas in phase two, have received encouraging response, with 95% and 60% interest respectively. Construction of Phase 1 has already begun and is expected to be completed by the end of next year.

Meanwhile, Berjaya Land Bhd says it has received investment licences for four of its six projects in Vietnam.

Senior general manager for properties and marketing, Mah Siew Wan, says the company is targeting to launch its Bien Hoa project in Ho Chi Minh later next month and Thach Banh New City project in Hanoi by the year end.

Gamuda Land Sdn Bhd managing director Chow Chee Wah says the launch of the residential component of the company’s Yen So Park project on 500 hectares in Hanoi is targeted for the first quarter next year.

The project involves the development of a sewage treatment plant, transformation of an existing park into an international thematic park, and integrated commercial and residential developments. It has an estimated gross development value of RM8bil over a 10-year period.

“Our design, technical and construction works are on schedule. The development of the sewage treatment plant and upgrading works of the park is smoothly moving on. We will be launching our township parcels (links and apartments) in early 2010. By then, we will be in the right time as the economy improves,” Chow says.

He sees a great potential in Vietnam because of its largely untapped property market.

“Vietnam has a population of over 186 million people (this is three times of Malaysia’s population), and it is the 13th most populated country in the world. Of this, more than 30% of the nation’s population is concentrated in Hanoi and Ho Chi Minh.

“The Vietnamese are rapidly upgrading their lifestyle and standards of living. The demand for nice housing surpasses the present supply. Hence, there is a ready market for us to draw on and it is an excellent chance for us to introduce resort lifestyle living which Gamuda Land is renowned for,” he says.

Da Nang is fast becoming Asia’s equivalent of the southern hemisphere’s second-home mecca, Australia’s Gold Coast.

After years of lying dormant due to developers’ financial constraints and the world’s economic recession, resorts in the central coastal city has revitalised construction and more are selling second homes.

VinaCapital Real Estate is the latest developer jumping onto the bandwagon, offering 115 villas for sale. The Ocean Villas is part of the 260 hectare Da Nang Beach Resort, an integrated resort community featuring a JW Marriott resort, two l8?hole Greg Norman-designed golf courses, a cultural centre and up to 400 villas.

The Ocean Villas range from two to five bedrooms in size on plots of 500-1,400 square metres and are designed as modern living spaces with views of the golf course. beach and small canals meandering through the site. Three model villas were launched a week ago.

The Ocean Villas will be developed in two phases, with the first one building SO villas on 12 hectares and handover is expected in the third quarter of next year.

Prices range from $375,000?$S71.000 per unit, according to Matthew Koziora, sales and marketing director of VinaCapital Real Estate.

Koziora said Vietnamese could buy villas on a free-hold basis, while foreigners could take out long-term leases of up to 50 years. To date, SO percent of the first phase has been sold with most clients coming from Hanoi and a small number from HCM City. There have been some responses from Hong Kong and Singapore.

“We are concentrating on Vietnamese customers,” he said. “The Vietnamese market is a lot healthier.”

Raymond Moore, head of Savills agency sales in HCM City, said: “Since introducing the Ocean Villas in Hanoi and HCM City in July. We have received numerous enquiries. It shows the strong demand.”

A few minutes drive from the Ocean Villas, Savills has also been selling Hyatt Regency Da Nang Residences, which is offering 174 condominiums and 27 villas for sales. Other developments such as Furama Villas and Olalani are also selling villas and condominiums.

Moore said Da Nang had established itself as a preferred second-home destination in Vietnam with more resorts selling villas and condominiums to Vietnamese.

Robert Elliott, project director of Da Nang Golf Club, added that more golf courses to come on line in Da Nang would create a golfing destination that would rival Thailand’s Phuket or China’s Hainan Island.

The IS-hole Montgomerie Links is the only golf course in the central region at present and Da Nang Beach Resort plans to complete the IS-hole Dunes, late this year, that will cater to buyers and guests of villas and condominiums around the areas.