VietNamNet Bridge – VinaCapital, the Vietnam-focused asset management firm, has found a joint partner to develop a $4 billion integrated resort and casino in Quang Nam Province, bringing hope for resuscitation of this long-delayed project after the withdrawal of Malaysia casino operator Genting.

VinaCapital claims to have found a major foreign partner for its South Hoi An gambling and resort project.

A Chu Lai Economic Zone Management Authority’s senior official, who declined to be named, told VIR that VinaCapital had recently introduced a foreign company to the authority.

“This is not an appropriate time for me to unveil the name. But it is a famous global player in casino industry. It has good financial capacity and strong management experience which makes it perfectly suited to run an integrated resort complex,” said the official.

He added that a delegation from the provincial authorities had visited a casino and resort complex owned by the unnamed foreign partner abroad to appraise its existing business operations.

VinaCapital’s South Hoi An is the largest tourism property project in Quang Nam, a province already home to several luxury coastal resorts.

The project consists of five-star hotels, villas, and electronic gaming facilities.

Initially, VinaCapital held 80 per cent stake while Genting Malaysia Berhad held 20 per cent. Genting suddenly announced to withdrawal from the project in September last year, forcing VinaCapital to find other partner. To make the project more attractive to other investors, VinaCapital in June 2013 proposed the local authorities cut a third of land allocated to the project down to 1,000 hectares. In addition, the developer also asked permission from the provincial people’s committee to delay the completion of the project until 2035.

The official said VinaCapital’s new partner could acquire an 80 per cent stake in the project while VinaCapital would retain the remainder.

“This will be an important change ensuring the successful development of the project,” the anonymous official added.

“After the province gets nod from the government, we will amend the investment certificate for this project,” he said, adding that this step could be implemented in the first half of 2014.

South Hoi An is one of seven casino projects licensed in Vietnam. The government is planning one more casino on Van Don Island in Quang Ninh Province, a move that has attracted international casino operators such as Las Vegas Sand, Genting, Phoenix Macau Tailoi and the ISC Corporation. In November, Vienna-headquartered Casinos Austria, one of the largest casino operators in the world, also expressed an interest.

Source: VIR