In mid-April 2007, the fund management company VinaCapital announced its Hoi An Royal Bay luxury resort project in Quang Nam. This project is seen an important part of its long-term investment plan in Vietnam. According to economic experts, VinaCapital's investment into the real estate market signalled a new development cycle of the Vietnamese economy.
This project is being carried out by two companies with very strong financial capacity, namely Onshine Investment Limited (OIL) under VinaCapital Group, and Sai Thanh International Investment and Tourism Joint Stock Company (STI). The US$16-million resort will have 100 small villas, swimming pools, restaurants and clubs, and offer an array of services for tourists. Once completed, the project will bear the five-star Sofitel brand of Accor Group - a world leading hotel management group.
Mr Le Minh Phuc, CEO of the project, said, the Hoi An Royal Bay resort will become a top luxury resort, not only in Quang Nam and central Vietnam, but also in Vietnam and the Southeast Asian region.
Real estate is an important field in VinaCapital's portfolio. According to Mr Horst F. Geicke, CEO of VinaCapital, his company is strongly developing operations in real estate in major cities like Hanoi and Ho Chi Minh City, as well as central localities like Danang City, Quang Nam and Khanh Hoa provinces. Tourism in central Vietnam, according to Mr Horst F. Geicke, will strongly develop in the coming years, thanks to favourable geographic, climate, culture and transport conditions, as well as attractive investment incentive policies.
“The Vietnamese real estate market seems to have passed the frozen period and is entering a new development cycle. This is also a large channel drawing investment capital from domestic and foreign companies. Furthermore, Vietnam's land fund is still large; hence, many big investors want to join and this will enhance the development of the entire real estate market. Based on our research division's analyses, we are developing operations in real estate, including investing in resorts and four or five-star hotels,” said Horst F. Geicke.
In addition to property, VinaCapital is also preparing to launch an infrastructure fund to serve economic investment and development activities. According to Horst F. Geicke, he and his associates have made many trips around the world to introduce this initiative and persuade investors to join. Many investors actively support and participate in the fund. VinaCapital plans to launch this fund by the end of May with initial investment capital of US$200-300 million. The Vietnam Infrastructure Fund will be engaged in infrastructure investment operations like seaports, airports, roads, bridges and electric cable systems. The company is studying the best project to invest in.
VinaCapital Group is now managing more than US$1.4 billion through its two London Stock Exchange-listed funds (Vietnam Opportunity Fund with US$800 million, and VinaLand with US$600 million). Its DFJ VinaCapital L.P. joint venture fund with initial investment capital of US$50 million is investing in the information technology and telecom sectors.
Kim Phuong
Vietnamese
