Showpiece casino lacking investors

Hoi An is the centrepiece of Quang Nam’s tourism, photo: Le Toan

A source at the Management Authority of the Chu Lai Economic Zone, Quang Nam province, said VinaCapital had not yet introduced a partner for the development of the Nam Hoi An resort.

Three months ago, VinaCapital, an investment management and real estate development firm focusing on Vietnam, set itself a deadline to find a prestigious partner to replace Malaysian operator Genting within the third quarter of this year.

“It seems to be difficult for VinaCapital to find a partner for this project. We understand they (VinaCapital) are talking with some foreign firms, but nothing has been finalized yet,” said the source.

Nam Hoi An is the largest tourism property project in Quang Nam, which is already home to many luxury coastal resorts. This latest project is expected to play a vital role in Quang Nam’s tourism development.

The source added that due to the large scale of this project, the management authority and provincial People’s Committee remain committed to supporting VinaCapital’s hunt for a new partner in order to complete the project which is scheduled to open in the fourth quarter of 2015.

VinaCapital was founded in 2003 and is now managing $1.5 billion in assets in Vietnam. The firm and Genting Malaysia Berhad, a subsidiary of Genting Group, received an investment certificate to develop the $4 billion South Hoi An project in December 2010.

The project consists of five-star hotels, resort villas and an electronic gaming facility for foreigners. VinaCapital holds an 80 per cent stake while Genting Malaysia Berhad holds the remaining 20 per cent. However, in September 2012, Genting suddenly announced their withdrawal from the project, forcing VinaCapital to find other partners.

To make the project more attractive to investors, in June VinaCapital asked the local authorities to reduce projects land allocation by a third, to from 1,500 hectares to 1,000 hectares. In addition, the developer also asked permission from the provincial People’s Committee to delay completion of the project until 2035.

So far, seven casinos have been licensed in Vietnam, of which Ho Tram Strip in Ba Ria-Vung Tau province is under construction. Canada’s Asia Coast Development Limited in July opened the first phase of Ho Tram Strip and is presently in the second phase of construction.

The government is also planning to call for investors for two more casinos in northern Quang Ninh and southern Kien Giang provinces.