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A special economic zone will arise in the future
The island, where a special economic zone (SEZ) will arise in the future, is quiet compared to one year ago, when investors from Hanoi and HCM City flocked there to ‘hunt’ for land.
The construction sites along the pristine beaches of the island are no longer full of workers and machines.
The ‘land fever’ which lasted many years has changed the face of Phu Quoc. A series of construction works, roads and seaports have been set up, attracting millions of visitors each year. The presence of investors pushed the land price up by tens of times. In some areas, the land price has increased by 100 times in the last 10 years.
However, the local real estate market has cooled down. According to DKRA Vietnam, no resort projects were put up for sale in the third quarter, while the market demand was relatively low.
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By May 2018, Phu Quoc had 278 valid investment projects with total investment capital of VND361 trillion ($16 billion). However, only 34 projects had become operational and 73 others had been following procedures. This means a high number of unimplemented projects. |
A real estate broker in Phu Quoc confirmed that the ‘land fever’ lasted from May 2017 to April 2018 and cooled last May when the Kien Giang provincial authorities asked the Phu Quoc district authorities to prohibit all land transactions.
The decision prevented land price escalation and the destruction of natural forests and agricultural land.
By May 2018, Phu Quoc had 278 valid investment projects with total investment capital of VND361 trillion ($16 billion). However, only 34 projects had become operational and 73 others had been following procedures. This means a high number of unimplemented projects.
A policy for sustainable development
According to Duong Thuy Dung from CBRE Vietnam, coastal tourism properties in Vietnam have great development potential with 13 million foreign travelers to Vietnam last year.
However, the strong investment wave in Phu Quoc has brought big challenges, including increased pollution, which would threaten Phu Quoc’s development plan to become the leading resort tourism point in Asia.
Phu Quoc needs a new development strategy which aims at sustainable long-term development rather than short-term goals.
The Kien Giang Tourism Department reported that 1.6 million travelers came to Phu Quoc in the first half of the year. In November 2018, Air Asia will open the route connecting Kuala Lumpur and Phu Quoc. In December, Vietjet Air will open the Phu Quoc-Seoul route.
Meanwhile, the $2 billion Corona Resort & Casino, the first casino in Vietnam open to Vietnamese, is expected to become operational in the northern part of the island this year-end or early 2019.
US$1=VND22,000
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