Quang Nam province will report to the Prime Minister and central ministries and branches to consider resolving problems at the South Hoi An Resort project. Check out the real estate news of the day.
Report to the Prime Minister to remove obstacles from South Hoi An project
The People’s Committee of Quang Nam Province has recently issued a directive to the Department of Planning and Investment regarding the resolution of issues pertaining to the South Hoi An Resort project.
According to the directive, the Provincial People’s Committee has tasked the department with promptly leading and collaborating with relevant departments, boards, agencies, localities, and units to assess and address existing challenges and hindrances in the procedural and investment implementation process of the Nam Hoi An Resort project in Duy Xuyen and Thang Binh districts. The objective is to finalize the draft proposal, seeking advice from the Provincial People’s Committee for subsequent reporting to the Prime Minister, as well as relevant ministries and central agencies, for further deliberation and resolution.
Previously, provincial leaders assigned the Department of Construction to lead and coordinate with relevant sectors, units, and localities to advise the Provincial People’s Committee on implementing the directives of the Standing Committee of the Provincial Party Committee and the Party Committee of the Provincial People’s Committee regarding the local adjustment of the Southern Hoi An Resort zoning plan.
In particular, attention was drawn to proposed adjustments in planning No. 2, with a request for South Hoi An Development Company Limited to finalize the detailed planning task outline aimed at reducing the overall construction density to 25%. Updates on the local adjustments to the project subdivision planning have been submitted to the Provincial Party Standing Committee for review.
Regarding this resort, in January 2024, Nam Hoi An Development Company Limited submitted an official dispatch to the People’s Committee of the province regarding the conversion of rice cultivation land in Duy Xuyen and Thang Binh districts for project implementation.
The South Hoi An Resort project has a total investment capital exceeding 81,204 billion VND, approximately 4 billion USD (as per the Investment Registration Certificate issued by the Department of Planning and Investment, certified for the third amendment on September 28, 2020). The investor indicates that the project is divided into 7 phases.
According to the report from the People’s Committee of Quang Nam Province, by the end of the third quarter of 2023, the project’s implemented capital reached 30,863 billion VND, equivalent to over 1.3 billion USD (accounting for more than 33% of the total project investment capital).
Nam Hoi An Development Company Limited has been granted a license by the Ministry of Finance to operate casinos since May 2020, with 1,000 gaming machines and 140 gaming tables.
For the period from January 1, 2023, to June 30, 2023, the business generated a total revenue of VND 824.5 billion from its casino operations. After deducting costs, the business recorded a profit of more than 204 billion VND. However, cumulatively since the commencement of casino operations until June 30, 2023, the business has incurred a loss exceeding 1,015 billion VND.
Notably, for casino business activities in the first 6 months of 2023, this enterprise contributed 264.5 billion VND to the state budget.
Phase 2 is about to launch with a total investment of more than 1 billion USD
In a recent report on the South Hoi An Resort Project, the developer, South Hoi An Development Company Limited, has stated that phases 1 and 2 of the South Hoi An project cover a total area of 336 hectares, encompassing administrative territories of 3 communes: Duy Hai and Duy Nghia (in Duy Xuyen district), and Binh Duong (in Thang Binh district).
Phase 1 of the project is currently under construction and operational. It comprises a resort complex with retail and entertainment facilities, 140 card tables and 1,000 gaming machines, an 18-hole golf course, as well as accommodation, commercial, and service buildings.
Phase 2 of South Hoi An Resort is divided into 3 areas. Area 1 involves constructing low-rise villas and a golf course on 16.9 hectares of land, which has been cleared and essentially leveled, currently lying vacant.
Area 2 is designated for beachfront villa construction, covering 36 hectares of cleared and leveled land, also currently vacant. The remaining area comprises land yet to be compensated and reclaimed, including residential, agricultural, vacant, and cemetery land, as well as land designated for transportation.
In the near future, Nam Hoi An will prepare for the construction of phase 2 on a 209-hectare area. This phase will include the construction of 89 two-storey resort villas, 17 two-storey commercial land lots, and 198 two-storey resort villas, along with commercial and service projects in the coastal area.
It is anticipated that by the end of the first quarter of 2024, phase 2 of the South Hoi An project will complete construction investment preparation procedures. By the fourth quarter of 2025, construction of phase 2 items will be completed and operational.
The total investment in phase 2, as per the 2020 investment certificate, amounts to 1.04 billion USD.
In November 2023, the project investor submitted a document to the People’s Committee of Quang Nam Province seeking guidance on procedures, mechanisms, and policies for investing in the construction of an Outlet Mall and Duty-free Center within the scope of phase 2 of the South Hoi An Resort project (Hoiana Resort & Golf).
The document outlines plans to invest in constructing an Outlet Mall and Duty-free Center on a 3.67-hectare area, combined with a tourist apartment building on a 0.22-hectare land at the southern gateway fronting Vo Chi Cong street.
Regarding the investor, Nam Hoi An Development Company Limited, the enterprise was established at the end of 2010, with Mr. Lam Chi Keung as the current legal representative.
As of October 2016, Nam Hoi An’s charter capital was 15.6 trillion VND (equivalent to 800 million USD), owned by Nam Hoi An Investments Pte. This capital is authorized to 6 individuals, including VinaCapital Chairman Don Di Lam, who holds 16.6%. Most recently, by the end of 2023, the enterprise’s charter capital changed to 6.268 trillion VND.
According to information from Bloomberg, at the end of July 2023, the billionaire Cheng family acquired Hoiana Resort & Golf, a casino resort in South Hoi An, Vietnam, from “Macau Casino King” Alvin Chau (Chau Trac Flower).
The Cheng family, led by Mr. Henry Cheng, is the third richest family in Hong Kong, with assets valued at 28.9 billion USD, as per Forbes’ data finalized on February 22, 2023.