Polo told to turn words into action

The Ministry of Construction (MoC) last month sent a document to Ninh Thuan People’s Committee asking it to hand over only 700 hectares out of total 1,500ha proposed by the Hong Kong-based Polo Beach International Limited to make an investment study. The project has not yet been licenced.

“The expansion of the project will be considered after state authorities appraise the effectiveness of the first phase,” said the document.

The requirement is aimed at limiting land waste in case the developer slowly develops the project like  what have been seen in several other billion-dollar tourism developments.

Polo Beach International Limited recently proposed to develop the $4.5 billion Mui Dinh tourism complex in Thuan Nam district, comprising resorts, an entertainment site, high-rise villas and a golf course.

Two years ago, the developer also proposed a similar project in Binh Thuan province, which was rejected.

The  Ninh Thuan investment will be implemented through a subsidiary with $900 million charter capital, equal to 20 per cent of total investment capital requested by legal regulations. Polo Beach International Limited also submitted an agreement with Johnson Capital, an American real estate capital advisory firm, for developing the project.

However, it is not enough to persuade the MoC as it requested province authorities to force Polo Beach International Limited to give a strong commitment for the project’s construction timeline.

In recent years, several foreign investors have registered to develop multi-billion dollar tourism projects in Vietnam.

They includle the $4.2 billion Ho Tram Strip developed by Canada’s  Asian Coast Development Limited and the $4.1 billion Saigon Atlantis developed by US-based Winvest LLC in southern Ba Ria-Vung Tau province.

Two other projects by New Zealand’s New City Properties Development Company’s tourism complex in Phu Yen province and the US-based Dragon Beach Group’s tourism complex in Quang Nam province were also licenced.

However, none of these projects have started constructing  due to site clearance slowness and developers’ financial weaknesses.

In June, Quang Nam People’s Committee announced it had revoked the investment certificate of Dragon Beach Group after it failed to deposit $4 million for its $4.1 billion project.