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Last updated: Wednesday, May 24, 2017

 

South Da Lat Urban Area: Ideal and Sustainable Investment Destination

Posted: Friday, May 19, 2017


Situated in a prime location, only 30 km from Da Lat City and 15 km from Lien Khuong Airport, Dai Ninh Trade and Ecotourism Area (South Da Lat Urban Area) is a top-class urban area in Vietnam and Southeast Asia, with hundreds of key constructions. As soon as South Da Lat Urban Area comes into operation, it not only brings a new tourism look to the southern part of Da Lat City but also helps stimulate and enhance investment attraction in Lam Dong province, hence creating motivation to boost socio-economic development as well as industrialisation and modernisation of the province. The following conversation with Ms Phan Thi Hoa, President of the Board of Directors of Saigon Dai Ninh Tourism Investment Joint Stock Company, the investor of South Da Lat Urban Area, will provide more information about this project. Hoang Lam reports.

In 2010, the real estate market was “frozen” by global economic crisis, but Saigon Dai Ninh Tourism Investment Joint Stock Company still decided to invest in South Da Lat Urban Area. Did the company have a strong motivation for this extremely risky decision?
In 2009, I assumed the Chairmanship of the Board of Directors and became General Director of Southern Housing Business Construction Company Limited. I was also a member of the Executive Committee of Ho Chi Minh City Business Association. After the association's charity trip with Comrade Ha (Chairman of the Vietnam Fatherland Front of Ho Chi Minh City) in Central Highlands provinces, our company donated some funds to restore Da Lat Market and a clock at its main gate. On that basis, our company established a good relationship with Lam Dong province and received an invitation to invest in the province from the Provincial Party Committee and the Provincial People’s Committee. After a survey, we found that the investment environment in Lam Dong was very open and provincial leaders always offered attractive investment incentives to businesses. That was the first motivation for us to consider South Da Lat Urban Area project.

In early 2010, the company decided to apply investment certification for South Da Lat Urban Area to Lam Dong province and received an approval of the Provincial People’s Committee. The 2010-2016 period was a downtime of the Vietnamese real estate market but we still received the sincere support and sharing of provincial and local authorities. As a result, the project progress was placed under no pressure.

When the real estate market was frozen, our difficulties lay not only in shrinking sales, but also in investment capital sources. Despite fund shortage, in response to the governmental policy on inflation curbing, Saigon Dai Ninh Tourism Investment Joint Stock Company decided not to borrow bank loans for the project, but use our own funds for phased project investment. This also caused the project to be carried out behind schedule. To capture opportunities from the recovery of the real estate market, from the second quarter of 2017, the company will synchronously deploy all items in South Da Lat Urban Area to quicken the project launch.

Once operational, South Da Lat Urban Area will effectively meet recreational, entertaining, leisure and shopping needs of local people and tourists when they come to Lam Dong, while easing pressures on increased population density in the downtown, developing tourism and improving living quality of local people. Fully aware that South Da Lat Urban Area carries an enormous mission, Saigon Dai Ninh Tourism Investment Joint Stock Company will focus on investing in sustainable and effective development to contribute to local socio-economic development.

In the past few years, despite mountains of difficulties, the active support and preference of provincial leaders has inspired Saigon Dai Ninh Tourism Investment Joint Stock Company to persist in carrying out the project. Not only with Saigon Dai Ninh, I believe that the provincial leadership’s spirit of seeking a higher vision and the readiness of accompanying investors to deal with emerging hardships will give more confidence to domestic and foreign secondary investors preparing to invest in all items in South Da Lat Urban Area. After the project was approved of 1-500-scale plan, the Lam Dong Provincial People’s Committee assisted us to reform and reduce administrative procedures, including the provision that buildings with five storeys or fewer do not need to apply for construction permit (According to the document of the Department of Construction 445/SXD-QHKT dated May 12, 2015).

In addition to the friendly and supportive leadership of Lam Dong province, feasibility, practical economic efficiency, long-term employment generation and tax payment to the local budget that South Da Lat Urban Area brings in are also a driving force for us to invest in the project. I think that visionary businesses will not ignore to take South Da Lat Urban Area as their best investment options because of low investment value, only 50 per cent of market price, high profitability and increased margin ratio; a prime location, only 10 km from Lien Khuong Airport; designed performed by architects from Meinhardt Group. South Da Lat Urban Area is a top-class urban area in Vietnam and Southeast Asia with hundreds of key constructions.

These distinctive advantages appeal individual investors and secondary investors to South Da Lat Urban Area to seek for safe, convenient, profitable investment. From these favourable factors, Saigon Dai Ninh Tourism Investment Joint Stock Company decided to invest in South Da Lat Urban Area. We also cooperated with foreign corporations and foreign experts to study and analyse financial investment and climate change risk. This is also the “necessary” and “sufficient” conditions to ensure that South Da Lat Urban Area will be always sustainable and profitable to provide an ideal accommodation for residents without fear of climate change.

Reportedly, before applying for investment in South Da Lat Urban Area, Saigon Dai Ninh Tourism Investment Joint Stock Company had to pay a lot of expenses for designing consultants. Where did this funding come from?
That's right! Saigon Dai Ninh Tourism Investment Joint Stock Company had to pay fees for macro management consulting, design ideas and design planning to apply for investment certificate and for design planning on 1-5,000, scale 1-2,000 scale and 1-500 scale.

The above-mentioned expenses are covered by the company’s own capital informally and informally contributed by shareholders to invest in the project (about 5 per cent of the total project investment value of VND25,243 billion according to the Investment Certificate 42121000716 issued by the Lam Dong Provincial People’s Committee and approved of the 1-500 scale planning). Up to now, we have not borrowed from any bank or credit institution.

In the future, will Saigon Dai Ninh consider cooperation with another bank to power its financial capacity? How does the company organise its management apparatus to improve the effect of calling secondary investors to develop the project?
In the future, we will cooperate with lenders Agribank and BIDV (signed four-party or three-party contract), HANDICO Financial Company and many domestic and foreign credit institutions to invest in building synchronised items in South Da Lat urban and tourism project.

In October 2015, Saigon Dai Ninh Tourism Investment Joint Stock Company guided a delegation comprised of the General Director, officials of the Board of Directors of Agribank and its branch directors nationwide to visit the project. In March 2016, we hosted a meeting with nearly 300 investors, foreign consultants as well as members and businesses of Vietnam Real Estate Association, real estate associations in Southeast Asia and real estate associations around the world in South Da Lat Urban Area to call for domestic and foreign secondary investors to cooperate with the company to invest in the project. With the efforts of the company's leaders, we have achieved satisfactory results in investment attraction cooperation.

Regarding management organisation, after completing mandatory legal procedures for project investment, in the past three years, despite frozen real estate market, Saigon Dai Ninh Tourism Investment Joint Stock Company conducted marketing at nine branches in the region and in the world in Switzerland, China, Taiwan, France, Italy, Dubai, South Korea, Australia, the United States and Japan (each branch has nine economic specialists covering all fields) to call for secondary investors to invest in the project. In addition, in recent years, we have welcomed hundreds of foreign and domestic investor delegations to study the project investment.

Currently, we are preparing legal matters for cooperation with nearly 30 secondary investors to invest in the project. With that importance, we need more support from Lam Dong leaders to assure secondary investors of investing their property and intelligence in the project, thus contributing to local socio-economic value.

In 2017, we will invest in infrastructure in Davos Hills Urban Centre, Spiritual Monastery, and cable car system. Lavender Resort has 37 buildings with a total of 3,500 apartments, each with two bedrooms (equivalent to 7,000 rooms) and each bedroom for at least two dwellers.

Lavender Resort can receive 14,000 people a day in South Da Lat Urban Area, particularly during weekends and holidays. The resort alone can serve 3,000 customers with permanent tickets and 4,000 customers visiting the spiritual monastery. This is the latest plan we launch at South Da Lat Urban Area.

With the relentless efforts of Saigon Dai Ninh Tourism Investment Joint Stock Company and the enthusiastic support of Lam Dong authorities, South Da Lat Urban Area will be surely an ideal place for domestic and foreign tourists to come for a rest, and an ideal sustainable investment destination that brings happy residence and continuous development and brings profits for secondary investors as well as visiting customers, and the investor in the long term.








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