Furama to open doors to new investors

Furama deputy general director Huynh Tan Vinh told Vietnam Investment Review that the company was waiting for approval to become a public entity and begin construction of the second phase in July.
The second phase will be built on 28 hectares next to the current site and feature town townhouses, villas, hotels, shops, an international school that costs some $200 million to develop.
Beyond the option of buying Furama’s shares, investors will be able to purchase townhouses and villas in the resort complex for lease to expatriates living in Danang and tourists.
“This business model is getting more popular in Vietnam and will allow investors to buy villas in a resort where they can have free holidays for a few weeks and cooperate with the hotel management company to lease the properties to tourists to earn revenue,” said Vinh.

Son Tra Resort & Spa is among the first resort in Danang adopting this business strategy and has sold 22 out of 24 villas in the first phase. Buyers have registered other villas in the resort, which is still under construction.

Vinh said investors in the Furama could expect a high return on investment as tourism in Danang was on the rise.

“There are three factors that are crucial to Danang’s tourism development. These include golf courses, more flights and shopping areas and all these things are being done now,” said Vinh.
Lafien Company from South Korea has received a licence for an 18-hole golf course near Ba Na Mountain, Daewon is working on a township with a golf course in Da Phuoc area and VinaCapital will build a 36-hole course in Non Nuoc Beach.
Ngo Quang Vinh, director of Danang Tourism Department, said the city had zoned a shopping street in the downtown area and within the next year, the completion of Vinh Trung Plaza and Indochina Riverside Towers would provide more shopping options.
The expansion of Danang airport with a new terminal able to receive four million passengers a year is due to begin construction in 2008. That will attract more flights from Hanoi, Ho Chi Minh City and overseas.
“More golf courses and shops will encourage tourists to book longer stays in Danang,” said Vinh from Furama.
As tourism logistics improve, developers are being encouraged to build hotels and resorts along Danang’s coast. Next to Furama, Hoang Tra hotel is speeding up construction that will be managed by Life Resorts. The Olalani Resort is completing the sample villas and there are signs that the construction of the 500-room and villa Crowne Plaza hotel will begin soon.
Vinh said as more hotels open competition will get stiffer but this is good for Danang because the city would become more popular internationally with the presence of well-known hotel brands such as Crowne Plaza, Raffles and Sofitel.