VinaCapital finalizing accord on $4b Hoi An IR, says construction to begin soon

VinaCapital, an asset management firm focused on Vietnam, said it’s finalizing talks with a foreign investor partner and expects to start construction soon on a long-delayed $4 billion integrated resort in South Hoi An.
“We expect to start construction on this development in mid-2015. We are determined to develop it because this is a very big tourism project,” Don Lam, co-founder and CEO of VinaCapital told Vietnam Investment Review.
The company is seeking a partner to replace Malaysia’s Genting Bhd, which pulled out in 2012. Earlier this year, the firm said U.S. company Peninsula Pacific would be stepping in to fill the void. However, the report said it now appears likely that Peninsula Pacific has also withdrawn.
Lam wouldn’t reveal the name of the new investor as the agreement has not yet been signed.
“In 18 to 24 months after we commence construction in mid-2015, the resort will be operational,” he was cited as saying.
To make it more attractive to prospective investors, VinaCapital proposed that the local authorities reduce the size of the project from 1,538 hectares to 1,000 hectares. The developer also asked for permission to extend the project’s lifetime to 50 years and for the ability to add 20 more gaming tables for a total of 90.
VIR said it’s likely Hong Kong-based Chow Tai Fook Enterprises will be named as the new partner.
Vietnam is currently finalizing new legislation on the country’s gambling industry and may open up casinos to locals, which may be a game-changer for foreign investor interest in the country.