Vinacapital pens deal on Da Nang tourist complex project
Vinacapital, a British Virgin Island-based fund management company, has pledged to invest $150mil in a project on golf course and tourist complex in Da Nang City.
On June 1, Deputy Chairman of Da Nang City Peoples’ Committee Tran Van Minh and Vinacapital Director Don Lam, signed a memorandum of understanding (MOU) on the Hoa Hai golf course and sea tourism complex project.
The project will cover an area of 260ha in Ngu Hanh Son district, which will consist of two sub-projects. The first one, 50ha of beachfront, will be a tourism complex and private villas for sale. The second project, is reserved for a 36-hole golf course, and more private villas for sale.
As agreed in the MOU, the total investment capital of the project is $150mil, and in all cases, the lowest capital sum to be pumped must not be lower $100mil.
Though this is just an MOU, the two sides have made strong commitment to the project. The investor paid a deposit of $3mil on the project immediately after the MOU was signed (the investor has to pay $29mil for land leasing for 50 years). A further $12mil will be paid after the contract on land lease is signed and the investment license is granted. The remaining sum of $14mil will be paid over a 20 year period from the day the city authority officially allocates the cleared land.
The investor is obliged to complete necessary procedures for investment license application within six months of the MOU signing. Six months after the investor obtains the land, it must have begun the construction. The MOU also stipulates that the investor must put the project into operation within 24-36 months. If Vinacapital does not fulfil these points on schedule, it will lose its $3mil deposit.
The Da Nang authorities pledged to complete site clearance and allocate land to the investor within nine months of the investor making the second payment. If allocation is delayed, the authority will have to pay a fine. The city has also committed to providing standardised infrastructure, and offers the highest levels of investment incentives allowed by law.
Observers believe that this is for the first time a foreign invested project has shown such strong commitment, and believe this will ensure the success of the project. Several licensed tourist projects have been pending as investors have held off on project initiation.
Vinacapital also donated VND210mil to support victims of Typhoon Chanchu.
The two sides have also begun negotiations on a 7-ha trade centre, hotel and office building project, planned for Bach Dang Dong Street, along the Han River.