Investors eye $2 billion finance-trade-casino complex in Da Nang

Monday, Jun 15, 2020 16:40

Coastal property projects are developed on the Son Tra Peninsula. The city has offered land-use right auctions for the US$2 billion financial-trade and casino centre in Son Tra. — VNS Photo Cong Thanh

Five key investors – the Import-Export Pan Pacific Group (IPPG), T&T Group, New Techco company from Viet Nam, and Sakae Holding and Ficsion Holding companies from Singapore – have registered for a land-use rights auction for a US$2 billion finance-trade-casino complex in the central city.

The Department of Natural Resources and Environment said the five companies had already sent their files to an auction of land-use of four plots covering 2.7ha on Vo Van Kiet and Vo Nguyen Giap streets on the Son Tra Peninsula.

It said the city was reviewing its detailed plan for the complex, and an official auction for the trade and casino complex would start in the third quarter of this year.

The land plots were designed as a key financial centre in connection with the city’s downtown Hai Chau District and coastal entertainment-trade-casino zone in Son Tra District.

Two years ago, IPPG planned to develop the first international standard downtown duty-free zone and factory outlet centre, but it had failed to negotiate with Trung Nam Group to make the Golden Hills area the first duty-free centre in central Viet Nam.

Da Nang has listed 68 Public-Private-Partnership (PPP) projects, 22 of them in the hi-tech sector, calling for investment from domestic and foreign businesses.

The projects are in the fields of education and training, healthcare, tourism and services, trade, infrastructure, hi-tech farms, entertainment and environment.

The total investment needed for these projects is estimated at US$1.4 billion.

The Da Nang administration has classified the projects under the Build-Operate-Transfer (BOT), Build-Lease-Transfer (BLT), Build-Own-Operate (BOO) and Build-Own-Operate- Transfer (BOOT) models.

Some of the key projects are a solar power plant ($400 million); Lien Chieu Port ($324 million); mass transport system ($2.7 billion); railway station removal and urban resettlement ($678 million); software park No 2 ($150 million) and a horse racing centre ($200 million).

These PPP projects are expected to help Da Nang become a ‘green city’ by 2030.

Da Nang has been a frontrunner in Viet Nam in deploying PPP projects, co-operating with the Japan International Co-operation Agency (JICA) on key projects since 2012.

The Da Nang Hi-Tech Park has lured 18 investment projects, of which nine are foreign direct investments (FDI), with total capital of $564 million. Six projects, including four FDI and two domestic, have already been put into operation.

The Da Nang Hi-Tech Park and six other Industrial Zones (IZs) have drawn 505 projects worth $2.6 billion. These projects earned revenue of VND35.6 trillion ($1.5 billion) in 2019, contributing $213 million to the local budget.

The Universal Alloy Corporation (UAC) from the US launched its first stage investment of $30 million of the Da Nang-based Sunshine Aerospace components manufacturing plant on 10.9ha in March 2020.

The plant would pour in a further $74 million from March to April 2021 to boost production.

It’s also the first aerospace parts project of the UAC in Viet Nam and Asia, with total investment of $170 million.

UAC plans to manufacture over 4,000 different aerospace parts at the Da Nang-based plant to supply Boeing, Airbus, Embraer and Bombardier, and it will export these parts to North America, Europe and Asia.

Da Nang has called for investment from Silicon Valley and the US in healthcare, hi-tech industries, Artificial Intelligence, education, real estate and automation at Da Nang Hi-tech Park and IZs.

Tourist real estate remains a popular investment magnet in this central city, attracting 25 foreign direct investment (FDI) projects worth $1.8 billion. — VNS

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