Vancouver's Asian Coast Development breaks ground on a $4.2-billion mega-resort on the untouched coast of southern Vietnam
Move over Macau. Look out Las Vegas. Upon completion in a few short years, Ho Tram Strip will rival the largest, most spectacular casino resort destinations on the planet.
The 9,000-room, 169-hectare beachfront hotel resort and entertainment complex in southern Vietnam’s Vung Tau Province is being built by Vancouver-based Asian Coast Development at a cost of $4.2-billion.
The culmination of three years of negotiations with the communist government of Vietnam, Ho Tram Strip is the first major project of its kind in Vietnam and one of the largest tourism mega-projects ever undertaken in Asia.
So vast is the project, it has bumped Canada from 21st (2007) to first among 32 nations and territories investing in Vietnam in the first quarter of 2008, according to Vietnam’s Ministry of Planning and Investment’s Foreign Investment Department.
With 3,200 kilometres of largely unspoiled coastline, with major economic reforms transitioning the country from a planned to a market economy, and with its enviable “hub” location at the geographical centre of Southeast Asia, Vietnam is the next big thing for today’s forward-thinking foreign investors and developers.
Asian Coast Development is no exception. The Vancouver company plans – with Las Vegas premier architectural firm Steelman Partners running point on design and former Canadian Prime Minister Jean Chretien spearheading its government relations team – to polish its slice of rough-diamond Vietnam to a brilliance that will capture the eyes and imagination of the world.
Construction has already begun on the US$1.86-billion first phase of the development, which includes two five-star hotels, two casinos, a Greg Norman golf course, a conference centre and even an interactive dolphin exhibit . . . all scheduled to be completed and operational by 2011.
Speaking in September at an international conference of integrated resort professionals in Singapore, commented Asian Coast Development CEO David Subotic: “Currently Macau stands out as the obvious destination for integrated resort visitors, but we believe that Vietnam is ideally positioned to offer tourists possibilities far beyond what Macau is capable of.”
Discussing the Ho Tram project this week, Subotic told the Asian Pacifc Post: “This project will be capable of competing with any tourist development in the world and we are very proud to be one of the standard bearers for resort development firms in Canada.”
As a backdrop to the completion of the Ho Tram Strip deal, Vietnam and Canada, which have shared diplomatic ties for 35 years, have been holding rounds of Foreign Investment Promotion and Protection Agreement negotiations.
The first round of talks was held in Hanoi last year; the second in Ottawa earlier this month.
A bilateral FIPA will provide greater predictability and certainty for Canadian investors considering investment opportunities in Vietnam.
Canada’s objective in entering these negotiations, according to the Department of Foreign Affairs and International Trade, is to secure a comprehensive, high-quality agreement which will protect investors through the establishment of a framework of legally binding rights and obligations.
The two sides – with bilateral trade growing steadily and reaching almost US$1-billion in 2007 – agreed to hold the next round of negotiations on the agreement in Hanoi.
Meanwhile, Asian Coast Development steams ahead with its plan to turn a little strip of unspoiled white-sand beach and lush tropical jungle into a little piece of paradise.
In an exclusive interview with the Asian Pacific Post, Asian Coast Development CEO David Subotic shares his thoughts on the landmark project in Vietnam launched right here in Vancouver.
Q: Why Vietnam and why Vietnam now?
A: When we first saw the site three years ago, we fell in love with it immediately. There are so few unspoiled beaches left in the world. And we have more than two kilometres of beachfront, within 100 kms of a major metropolis with more than eight million people.
During that same time, we also saw a rapidly developing country of more than 84 million people emerging as an increasingly popular tourist destination with an under served tourist market, particularly in the 5-star category.
Vietnam is within easy access for more than 300 million potential clients, a huge regional market that does not even take into account the global travel market. Considering all these factors, and the growing popularity of casino gaming in Asia, it is clear to see that Vietnam is an ideal casino resort location. And we are obviously not the only ones that feel this way, as our project was selected from dozens of applications to become the first tourism development in Vietnam to receive an investment certificate that includes a Las Vegas-style gaming license.
Q: How would you characterize this project on the global stage in terms of scale and allure?
A: In both scope and allure, this project will be able to compete with the best that Asia has to offer and will also be similar in size to some of the largest resort properties in the world.
We feel that the one of the biggest attractions we are able to offer is the very rare combination of beach, entertainment, and adventure vacation experiences all in one location.
Of course, we have the beautiful white sand beach, designed by nature that we can’t hope to improve on, but we will add to it with experiences like the Greg Norman golf course, a huge underwater aquarium, state of the art conference facilities, a wide selection of top end restaurants and night clubs, expansive spa and shopping facilities, as well as activities unique to South East Asia, such as an opportunity to swim with dolphins.
Q: Is ACD planning to market Ho Tram Strip beyond Asia?
A: Considering the global allure of the project, we plan to market it on a worldwide scale both to the East Asian Diaspora and to native populations from North America, Europe and Russia. That said, we expect the majority of our clientele will originate from China, Korea, Japan and other South East Asian nations due to their proximity to the project and the ease of travel.
Q: One of your new senior executives - Chief Legal Officer John Legge - is from Vancouver . . . do we have the talent base in Vancouver to take these types of projects to the finish line?
A: Vancouver unquestionably has a lot of executive talent and we are mining that resource as much as possible. However, due to the lack of integrated resorts in British Columbia we are also sourcing executives from throughout the world with experience in that field. To that end we have recently added Jef Forrer, who worked on Atlantis in the Bahamas and Sun City in South Africa to our development team and have also appointed Hubert Wang, formerly of the Las Vegas Sands as our CFO.
Q: Will the current global market troubles have any impact on the ground as the project moves forward?
A: We do not anticipate any difficulties keeping our construction schedule. While there has been a short term reduction in the number of visitors to resorts and casinos generally we believe that when we open in 2011 there will be significant demand for our product. In the short term the slowdown the drop in commodity prices should reduce our construction costs.
Q: Singapore and Macau have already overtaken Las Vegas in terms of gambling/resort revenues . . . what is Asia doing right that Las Vegas is not? Or is this simply a function of shifting consumer/economic markets?
A: There are a number of reasons for this success, among which you could include shifting economic power and cultural differences with respect to gambling. Perhaps most importantly though, Asia currently has only a fraction of the total number of casinos found in North America and a much larger population base on which to draw. This sets the table for success for individual projects and by all indications this trend will continue for quite some time until critical mass is reached.
Q: How have your dealings been with the Vietnamese government?
A: Honestly, it has been a pleasure to deal with them. Rather than rush into gaming, they have examined what has worked with other jurisdictions and what hasn’t and have made their plans based on that knowledge. They have been very clear and very easy to deal with. The Vietnamese Government didn’t just want a casino, they wanted a development that can compete on a world scale and we put together a team capable of delivering that
Q: What are some of the environmental factors taken into account for the development?
A: The Vietnamese government has been very strict about a number of development issues before they granted an investment certificate to this project. The proposed design has had to adhere to a number of stringent environmental preservation and conservation guidelines. This was not an issue for us, as it was always our intention to blend this resort into the beautiful natural surroundings while disturbing as little of the environment as possible.
This can be seen in a number of aspects of our development, from technical issues such as our plans for waste management and removal right through to major parts of the development, such as the championship golf course being designed by Greg Norman. Greg has always made it his approach to disturb as little of the surroundings as possible, while seamlessly fitting the course into the natural environment. This made him a natural fit for our project and we are very pleased to have him on board. I like to think he is equally excited, as he has said that Ho Tram is one of the most beautiful pieces of land he has had the opportunity to work with.
Q: Anything else you feel our readers should know about this project?
A: It is our hope that Vietnam’s casino expansion in general, and the Ho Tram Strip in particular, will act as a catalyst not only for gaming but for the entire travel industry within Vietnam and the region in general.
What we are building here is on scale with some of the largest resorts in the world with a unique product in a unique location. We are confident it will be received as having a positive domino effect on the travel and hospitality industries throughout the region, thereby increasing income and improving living conditions for a large number of citizens in some of the world’s most quickly emerging economies.
By Mata Press Service
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