The Mekong Delta province of Tien Giang is capturing strong attention from investors, local and foreign alike, with trillions of Vietnam dong pledged by investors at a conference there on Friday.The provincial government awarded licenses to nine projects worth VND3.2 trillion, or nearly US$180 million, and signed 15 other memorandums of understanding with investors, who pledged to pour VND10.8 trillion more. The results were announced at the first-ever investment promotion conference in Tien Giang, some 50km southwest of HCMC, which drew the participation of senior leaders and nearly 1,000 entrepreneurs.

Among the new investors are HCMC-based Khang Thong Construction, Trading, Service Joint Stock Company, which will spend VND1.1 trillion developing Binh Dong Industrial Park in the province, and Dai Ngan Co., Ltd., which will build a new urban center worth more than VND740 billion.

Hong Kong-based Golden Resources Development International Ltd. obtained an investment certificate for a tap water distribution project worth VND368 billion for the eastern part of Tien Giang Province. This company has invested in several projects in the country and Tien Giang Province over the past 20 years.

Tran The Ngoc, chairman of the province, noted that the development of industrial park infrastructure, new urban centers, tourism, ports, services and manufacturing are areas of great potential in the province.

At the conference, graced by State President Nguyen Minh Triet and Deputy Prime Minister Hoang Trung Hai, investors also showed their keen interest in these sectors, as manifested in memorandums signed at the event.

The would-be investor Hoang Quan Mekong, for example, has plans to develop infrastructure of Tan Phuoc II industrial park worth VND1.2 trillion, while Tien Giang Industrial Park Infrastructure Development Joint Stock Co. has plans to pour VND1.5 trillion to develop infrastructure of some other IPs in eastern Tien Giang Province.

There were also four memorandums in the housing development sector, with Tien Giang Construction and Investment Joint Stock Co. alone pledging to develop Tan Phuoc villa project worth 1.05 trillion.

President Nguyen Minh Triet in addressing the event called on the province to provide an open business climate, and urged investors to tap advantages of the promising land.

Meanwhile, Deputy PM Hoang Trung Hai recommended the southern province to offer more incentives for investors in terms of land allocation, services and qualified labor force.

Tien Giang is becoming a hotspot for investors given the many infrastructure projects being developed that will highly benefit the province and thus investors.

The agriculture-based locality has the HCMC – Trung Luong highway project under construction. Once opened to traffic this Wednesday, the highway will shorten the distance between HCMC and the Mekong Delta province, thus reducing transport costs while boosting trade between the two localities.

It boasts a geographical and landscape diversity, with mountains, forests, hills, rice fields, salt fields, ponds, lakes, rivers, sea, islands and peninsulas.

The city has a coastline of 42 km and a rich marine biodiversity.

Its economic sectors are industries, trade, trade, seaport services, aquaculture, and tourism.

The city targets to become a centrally-administered city by 2020 and an industrial, trade and service center which plays an important role in the central key economic region.

Six Senses Resorts and Spas has entered into an agreement with Ninh Van Bay Travel Real Estate Joint Stock Company for the management of two new luxury resorts in Vietnam.

Six Senses Latitude Saigon River, which is located in Dong Nai Province, is scheduled to commence operations by the second quarter of 2011 while Six Senses Latitude Phu Quoc, located in Kien Gang Province, is envisaged to open in 2012.

Currently, Six Senses manages the Six Senses Hideaway Ninh Van Bay in Nha Trang, which is owned by Ninh Van Bay. (hvs.com)

Russian investors can join in setting up oil refinery and metallurgy businesses, executing power projects, building hotels and business centres, providing machinery and equipment as well as manufacturing cars in Vietnam , Mr Petrov said.

Vietnamese Ambassador Bui Dinh Dinh applauded the organisation of the seminar, saying that similar activities will help promote traditional friendship and strategic partnership between the two countries.

Last year, two-way trade recorded a year-on-year rise of 4 percent, fetching more than US$1.7 billion in 2009, said Ambassador Dinh.

Deputy Minister of Planning and Investment Cao Viet Sinh briefed the participants on the country’s political stability and social security, a high economic growth and huge investment demand which made Vietnam a destination for foreign investors. He called for closer cooperation between Russian and Vietnamese businesses for mutual benefits.

Russian businesses discussed issues related to investment in manufacturing construction cranes, energy projects, realty market and housing, training officials, a free economic area in Vietnam and the framework of ASEAN.

The central coast city of Danang has been seen as a favorite destination for tourism property developers as the second home segment enjoyed positive feedback last year. Villas and condominiums worth from several hundreds of thousands to millions of dollars attracted many investors and buyers. However, several tourism property projects are gearing up to share this narrow segment, offering more choices for investors.Marc Townsend, managing director of CB Richard Ellis Vietnam (CBRE), predicted an increase in second home market stock this year and said Danang might see diminished demand due to strong supply and the rise of other locations around the country.

For example, the tourism property project Saint Simeon was launched late last week with luxury villas built along the 600-meter beach in Phuoc Tinh Commune in Long Dien District in the southern province of Ba Ria-Vung Tau.

Nguyen Thu Huong, executive director of Rung Duong Company, the project owner, said at the launching held at La Cantine Restaurant in HCMC on Saturday that the company would invest US$50 million to develop the 7.5-hectare complex.

Huong said the first phase of the project would start building 36 ocean-view villas from 774 to 1,450 square meters each. These villas are designed with a private swimming pool and the complex will include a restaurant, bar and spa.

The project owner says it will start the second phase this quarter to build a five-star hotel with 100 rooms. Both phases are expected to be up and running by Q3 of 2011. The third phase of the project will build 60 apartments from 120 to 250 square meters each.

Huong said the complex would be managed by the Singaporean management firm Careers Hospitality and that infrastructure was under construction and a model villa would be launched in mid-February.

According to CBRE, villas in the Saint Simeon project are from US$830,000 to US$1.85 million each, or from US$1,800 to US$2,200 per square meter, depending on location.

In another tourism property project in Ba Ria-Vung Tau Province, Kim To Service and Trading Company broke ground Saturday to build a villa section at the famous Binh Chau natural hot spring some two kilometers from Ho Coc Beach in Xuyen Moc District.

The developer says it will invest VND470 billion to build 160 villas and service and entertainment facilities within 36 months.

Thanks to being located near the hot spring, the developer is wooing potential buyers with a pipeline system to carry hot spring water to each villa.

Townsend of CBRE projected that the central coast resort town of Nha Trang would enter the second home market with condominium projects to be launched this year. Mui Ne in Phan Thiet City will become a superstar this year with tourism property projects offering multiple opportunities for home ownership, golf and beach vacations.

The Sunshine Hill Villas project in Phu Hai Ward, Phan Thiet City has launched to the market 139 villas from 384 to 523 square meters each with prices starting from US$250,000.

Townsend said foreign buyers were no longer the main consumers of these homes and target buyers would be locals from HCMC and the capital city of Hanoi.

For many years, the central coast city of Nha Trang has been known as a favorite destination for vacations thanks to its natural picturesque landscapes, beautiful beaches and warm weather. Most properties in the resort city are built as hotels to cater to the accommodation demand of international and local travelers. However, the city has witnessed more residential property projects making it more than just a venue just for short holidays but a place for residence and even property investment.According to the property market research company Savills Vietnam, there were 12 apartment projects with more than 1,500 units in Nha Trang as of November. The number of land plot projects remains at six with 1,000 plots and there are four villa/townhouse projects with a total of 250 villas and townhouses. Most of the apartment units are located in the city center while the villa/townhouse and land plot sectors are mainly concentrated in Vinh Nguyen and Vinh Hoa wards.

Savills says the land plot sector is enjoying the highest primary price in Nha Trang’s residential market at an average of US$710 per square meter while the primary price of apartments and villas/townhouses is recorded at US$595 and US$620 per square meter respectively. It may be explained that all land plot projects in the primary market are well located with a great view to the sea.

The seaside project An Vien Town was introduced at the property exhibition and conference called Propex Vietnam 2009 held at the Saigon Exhibition and Convention Center in HCMC’s District 7 ten days ago. The property project stretches two kilometers along the coast at the end of Tran Phu Street, some five minutes drive from the city center. It covers a 71-hectare site, in which 18 hectares are in the sea. It is designed with 568 land plots for villas and a wharf to serve private yachts of potential property owners. Infrastructure has been completed to make it ready for transaction and all land plots are licensed with permanent ownership certificates, according to the project owner.

The market research company says there is real demand for ready-built houses in Nha Trang, where residents seem to have a preference to live near the sea. Due to the limited land area close to the sea, many apartment buildings have been developed in the city in the last few years to meet demand. Some individual investors may buy land plots in a good location and build their own villas and then lease them to expatriates. With tourism strength, Nha Trang is a popular destination for foreign visitors. Many foreigners live in Nha Trang and consider this area as their second home.

Savills reports that 31 residential projects may come online in the next few years, and due to the limitation of land in the city center, the potential projects are now moving north, south and west. Large projects are expected to be developed in Vinh Thai and Phuoc Hai wards to the west of the city, which are expected to account for more than 60% of Nha Trang’s future development area.

The feasibility of building hotels in Nha Trang resort city in central coastal Khanh Hoa Province is better than other cities because of its success as a tourism destination, according to real estate service and consultancy provider Savills Viet Nam.

The total number of tourists coming to Nha Trang has been stable despite the economic slowdown, which indicates a promising future for the hotel market there, Savills said.

In the next few years, Savills reckons that 14 hotel projects with about 2,300 rooms could be completed in Nha Trang.

Currently, there are 373 hotels in Nha Trang, providing 9,712 hotel rooms.

They include three 5-star hotels and resorts, five 4-star hotels, twelve 3-star hotels and approximately 51 two-star ones.

Most hotels, resorts and guesthouses are concentrated on and around Tran Phu, Nha Trang’s beachfront boulevard. Others are located on the streets of Tran Hung Dao, Hung Vuong and Yersin, among several others.

Since October, many hotels of all grades have offered discounted room rates.

The majority of tourists travelling to Nha Trang during this period were foreigners. Hence, occupancy of 4-star and 5-star hotels was higher than in 3-star hotels due to foreigners’ preferences for high quality rooms.

There was a big difference in room rates among hotel grades. Five-star hotel room rates, at around US$170 per night, were more than double of 4-star hotel rate and nearly six times of 3-star hotel rate.

Demand trends

Nha Trang has long been renowned as a popular tourist destination, but the MICE (Meeting-incentive-conference-event) segment and demand from other business travellers remains limited.

The number of tourists in Khanh Hoa Province increased constantly in the period 2000-08.

In 2008, despite the global economic downturn, Khanh Hoa welcomed about 1.6 million visitors, an increase of nearly 17 per cent compared with 2007, in which domestic and foreign visitors accounted for 80 per cent and 20 per cent, respectively.

According to Savills, in November 2009, the total number of apartment projects in Nha Trang stood at 12 with more than 1,500 units.

The number of land plot projects remained at six, with 1,000 land plots. There are four villa/townhouse projects with a total of 250 villas and townhouses.

Most of the apartments are located in the city centre while the villa/ townhouse and land plot sectors are concentrated in Vinh Nguyen and Vinh Hoa wards with sea views.

The land sector is enjoying the highest primary price in Nha Trang residential market, at an average of $710 per square metre, while the primary price of apartments and villas/ townhouses is $595 and $620 per square metre, respectively.

All land plot projects in the primary market have a very good location, with excellent views to the sea.

There is a real demand for ready-built houses in Nha Trang. Due to the limited land area close to the seaside, many apartment buildings have been developed in the city centre in the last few years in order to meet this demand.

With Nha Trang increasingly considered as a destination for the holiday-home market, many foreigners living in Nha Trang consider this area as their second home.

Individual investors can buy land lots in a good location, build their own villas and the lease them to expatriates.

Savills said that a total of 31 residential projects may come on line in the next few years.

Large project areas are expected to be developed in Vinh Thai and Phuoc Hai wards to the west of Nha Trang, accounting for more than 60 per cent of Nha Trang’s total future development area.

European hotel group Accor announced Wednesday the rebranding of its Novotel Dalat Hotel in Central Highlands

Dalat City to Mercure Dalat Hotel to highlight the historical value of the 77-year-old property.

The hotel, formally known as the Hotel Du Parc, is among 11 Vietnam-based hotels under the management of Accor, the largest international hotel operator in Vietnam.

“The hotel being re-branded as a Mercure is a strategic move that will allow the hotel to reflect its true personality with the city’s inimitable identity and heritage,” Patrick Basset, Accor’s deputy president for Vietnam, the Philippines, South Korea and Japan, told The Saigon Times Daily.

Mercure is known for its facilities which blend classic and contemporary styles that reflect the hotel’s local personality. It is the second largest hotel network in the world, outside of North America, in terms of the number of rooms.

Built in 1932 at the heart of Dalat City, the 144-room hotel is equipped with premium in-room amenities, en suite bath or shower, satellite TV and complimentary WiFi internet access.

The property will maintain its French colonial style and traditions while embracing some of Mercure’s worldwide brand traits.

Mercure Dalat marks its presence by offering packages starting from US$59++ per person for a standard room per night, $74++ per person for a superior room per night, and $109++ per person for a suite per night.

Known as honeymoon mecca in Vietnam, Dalat is popular among local and foreign tourists for its serene landscape, cool climate and a high concentration of charming old French-styled houses and villas.

Accor is one of the world’s leading hotel managers with a network of more than 4,000 hotels in 90 countries.

The group, which is managing 11 hotels across Vietnam under the Sofitel, Novotel and Grand Mercure brands, is planning to operate 20 hotels in the country by 2011.

Life

Resorts, a group that specialises in operating resort

complexes, has announced the two new resort projects

.

In details, Life Resort Da Nang will be opened in early March 2010 and Life Heritage Resort Ha Long Bay in Quang Ninh province of July 2010.

However, the project of Life Wellness Resort Ninh Binh has been cancelled because of the economic crisis. Chris Duffy, Life Resorts Group’s general director announced about kicking off the two new projects mentioned above in the coming year at Vasta Restaurant, Dist 1, and HCM City last Thursday.

At present, Life Resorts Group has built and managed three resorts of Life Heritage Resort Hoi An, Life Wellness Resort Quy Nhon and Blue Ocean Resort Phan Thiet.