VietNamNet Bridge - Developing amusement parks for children is a lucrative business field with expected profitability of 30 percent. However, investors must have huge capital and continually update products.

The ASEAN Stats’ 2015 Report showed that Vietnamese children under 15 years old accounted for 23.5 percent of the population. In HCM City alone, there are 1.7 million children aged below 16, which account for one fourth of the city’s population. 

Meanwhile, the existing parks for children can only satisfy a small part of the demand.

The high value of the amusement parks for children, estimated at $3.1 billion, and the expected high profitability of 30 percent are the reasons investors’ rushed to inject money into the market in 2014.

Him Lam Company runs Vietopia center and Vingroup develops Vin Kids Center, while Thieu Nhi Moi develops tiNiWorld.

Developing amusement parks for children is a lucrative business field with expected profitability of 30 percent.

However, analysts commented that the capital flow to the market seems to have stopped. No new investor has turned up, while existing investors do not intend to expand their operation.

Only tiNiWorld has had announcements about the opening of new playgrounds. In late July, the chain opened a new center in Saigon Centre in district 1, HCM City, raising its total number of playgrounds to 25. The developer said it plans to double the number of playgrounds.

An analyst commented that the investors follow two ways in developing the business model. The first group of developers operate amusement parks in advantageous positions with real estate products owned by holding companies. They include Vietopia of Him Lam, or Vin Kids Center of Vingroup, the largest Vietnamese real estate conglomerate. 

However, the model can be applied only in large cities and provinces, where people can afford high ticket prices and seek professional services. 

The investors would have problems expanding because it is difficult to find land plots in advantageous positions.

In general, it takes investors a long time to recover the investment capital. Him Lam, for example, expects to recover VND500 billion worth of investment capital after eight years. To date, the enterprise has recovered half. 

Meanwhile, to build an amusement complex covering an area of 20,000 square meters in district 4, KizCiti had to pour VND40 billion in initial capital.

The second group of investors tends to develop amusement centers for children at shopping mall complexes. This model allows savings in initial investment capital, and therefore, the ticket prices are more competitive. 

The admission ticket to tiNiWorld is VND40,000-120,000, lower than the VND180,000-190,000 ticket at KizCiti and Vietopia.

However, the investors also face high risks. The company had to close some amusement parks at shopping malls with few visitors. Meanwhile, children’s tastes change regularly.


Kim Chi