Thien Minh Travel basks in the sunshine as it enjoys capital boost

DEG, a subsidiary of German KfW Group, will provide $17 million to Thien Minh as a part of its plan to promote sustainable tourism in Vietnam.

“Our commitment will help  the  Vietnamese  tourism  and  hospitality  company  continue  to  grow  and  promote  sustainable tourism  throughout  Vietnam  and  Asia.    Since  its  founding  in  1994,  Thien  Minh  has demonstrated its ability to implement new concepts within the tourism sector, one of which is in the area  of  volunteer  tourism,”  said  Philipp  Kreutz,  a member  of  DEG’s  management  board.

Tran Trong Kien, Thien Minh chief executive officer, said: “The loan is earmarked for Thien Minh’s investment and expansion plans, targeting the three- and four-star hospitality segment in compliance with the latest social, environmental and safety standards. We are very pleased to have DEG as one of our financing partners and look forward to a long-term successful cooperation.”

Founded in 1994, Thien Minh was originally set up as a tour operator under the brand name “Buffalo Tours.” Over  the  past  18  years  it  has  grown  to  become  one  of  the  leading  travel  and  hospitality companies with a focus on sustainable tourism in Vietnam and the surrounding region.
Last year, Thien Minh Group entirely acquired the Victoria Hotels & Resorts chain for $45 million from Hong Kong-based EEM Victoria Limited.

Kien said the three and four-star hospitality segment in Vietnam was falling behind demand, while the five-star segment was oversupplied.

“I cannot tell details of our development plan, but the loan could be used for building new hotels and upgrading our existing ones,” said Kien.

In an announcement jointly released by both sides, Thien Minh and DEG estimate the loan will contribute to safeguarding 2,000 jobs within Thien Minh, as well as to creating over 500 new jobs.

“Moreover, it is expected to generate net foreign-exchange income of  $10 million a year,” Thien Minh and DEG said. Tourism  is  one  of  the most  important  sectors  in  Vietnam,  directly  contributing  to  4.3 per cent  of  the country’s gross domestic product. About 4.3 million  people  in  Vietnam  are  employed  directly  or  indirectly  in  the tourism  sector,  according  to  the World  Travel &  Tourism  Council.
 
Besides investing in hotels projects, Kien said, Thien Minh planned to invest in a hospitality training school, combined with a training hotel in order to ensure that the company meets the human resource needs, in An Giang province.