Vietnam - Genting withdraws from key $4bn project

Genting Malaysia Berhad, a subsidiary of Genting Group,  withdrew from a $4 billion resort  project in Vietnam, which it had jointly developed with VinaCapital since 2010.

The firm on September 14 sent a document to Bursa Malaysia, the stock exchange floor of Malaysia, announcing the cessation of collaboration activities in Vietnam.

In its statement to Bursa Malaysia, Genting said: “On December 21, 2010, Genting Malaysia Berhad (GENM) announced that it had been collaborating with a partner to explore opportunities in the leisure, hospitality and entertainment industry in Vietnam.

GENM wishes to announce that these collaboration activities have been mutually ended. GENM is presently not pursuing any other interests in Vietnam.”

Officers of both VinaCapital and Genting (GENM) offered no details about the decision.

Do Xuan Dien, deputy director of Chu Lai Economic Zone Management Authority, confirmed with VIR that the Malaysian developer had pulled out of multi-billion project in central Quang Nam province.

“We received the announcement from VinaCapital informing the withdrawal of GENM two weeks ago,” said Dien. He said the provincial authorities would meet VinaCapital to discuss the destiny of the project following GENM’s departure.

“As I understand, Genting withdrew from Vietnam because Vietnamese government does not allow Vietnamese to enter gaming facilities,” he added.

GENM and VinaCapital Group in December 2010 gained an investment certificate for developing a $4 billion integrated resort, covering 1,555 hectares of land in Chu Lai Economic Zone.

VinaCapital held 80 per cent of stakes at the joint venture, when GENM held the remaining 20 per cent.

VIR last week contacted Katherine Chew, GENM’s vice president of public relations and communications, to ask whether the partner mentioned in the announcement was VinaCapital and the project it involved was the planned $4-billion South Hoi An integrated resort in Chu Lai Economic Zone. Chew declined to make further comment.

Huong Nguyen, director of public relations at VinaCapital, also did not respond to questions from VIR.

According to Quang Nam Provincial People’s Committee, this project is similar to $4.2 billion Ho Tram Strip project in southern Ba Ria-Vung Tau province with high-grade resorts and gaming facilities.

Until now, around 100 hectares of land at South Hoi An integrated resort has been cleared and the developer has not yet started the construction, Dien said.

Genting is a leading Asia leisure and hospitality company. Early this year, Genting also expressed interest in building a gaming and resort complex in northern Quang Ninh province, home to the world heritage Ha Long Bay.

Ngoc Linh | vir.com.vn

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