Billionaire Philip Falcone shared with TheLEADER his opinions on the investment environment in Vietnam and his business plan for the future.
Why did you decide to invest and build The Grand Ho Tram Strip in Vietnam?
Philip Falcone: As a long-time investor, I’ve learned to trust the numbers. When I first started looking at Vietnam, back in the mid-2000s, I was impressed with the country’s potential and the opportunities available for investment. The combination of a growing economy, stable political system, and a young and entrepreneurial population made for a very appealing environment.
Although I had some initial hesitation, my initial arrival in Ho Chi Minh City made a really lasting and positive impact. Driving out towards Ba Ria-Vung Tau – the eventual home of The Grand Ho Tram Strip – I was moved by the simple beauty of the countryside, and once I arrived, I was immediately taken by the pristine beachfront. At that point, I felt like I had truly found a unique opportunity, and together with ongoing support from the Province of Ba Ria-Vung Tau and the Government of Vietnam, we believed we could create something special here in HoTram.
The Grand Ho Tram Strip in Ba Ria – Vung Tau province
What trends have you noticed in Vietnam’s tourism sector since you made your investment?
Philip Falcone: Since I first began investing in Vietnam, nearly a decade ago, I’ve seen the country grow and evolve considerably. I was impressed with how Vietnam weathered the economic slowdown during the Global Economic Crisis, and even more so with how it has thrived in recent years. When I first began investing, there was relatively little in the way of major luxury developments – and certainly nothing on the scale of what I had conceived of for The Grand. Now, I think the country’s tourism market is evolving and expanding to support the directives laid out by Prime Minister Phuc and the Government of Vietnam.
It was surprising to me at the time when I first arrived, how little was being written about Vietnam as a top tourism destination. It’s really one of the most beautiful, diverse, and unique places I’ve ever visited, and I think there is genuinely something for everyone here. Since then, Vietnam has really developed a reputation as one leading global destinations, and it’s still growing in popularity. Part of this growth parallels the overall development of the country, but I also think that Prime Minister Phuc’s focus on expanding Vietnam’s tourism industry has played a major role in the recent increase in visitors. He has really proactively driven attention to the sector as a key growth area for the country, and I think his continued leadership will pay real dividends over time.
How do you think the liberalization of Vietnam’s casino gaming rules will benefit the country?
Philip Falcone: Vietnam’s liberalization of its gaming space has huge potential to generate tax and other income sources for the Government of Vietnam, which will help it achieve its expansionary vision for the country. At the same time, incentivizing further foreign investment in major integrated resorts throughout the country is important to ensure a strong and stable casino industry in Vietnam for decades to come.
I think the Government has made a very forward-looking decision in choosing to carefully and selectively allow participation by eligible Vietnamese nationals in specially-vetted gaming facilities. At The Grand Ho Tram Strip, we have been working for years to ensure that every aspect of our operations meets or exceeds the highest international standards. As an example, The Grand Ho Tram Strip is the only casino in Vietnam to launch its own responsible gaming program for its patrons. This is one of many examples which illustrate our ongoing commitment to the highest standards and our position in leading the way in how casinos can operate in Vietnam.
You have been a leading proponent for U.S investment in Vietnam – what do you believe is the outlook for U.S.-based FDI into Vietnam in the coming years?
Philip Falcone: The last several years have been a time of remarkable growth in U.S.-Vietnam relations, and I think that really has encouraged U.S. investors to consider moving into the market. In May, I hosted the Vietnam Investment Forum in New York in honor of Prime Minister Phuc’s visit, and there was substantial interest from the greater business community. In the room, you had leading U.S. investors and representatives from some of the largest companies in the United States, talking face-to-face with the Prime Minister and a number of his key cabinet members about real steps that both sides can take to increase U.S. investment in Vietnam.
As the Government continues to implement difficult but necessary reforms and takes further steps to ensure a level playing field for foreign companies, I have no doubt that U.S. investment will continue to grow.
What are your future plans for investment in Vietnam?
Philip Falcone: Looking ahead, we have an expansive slate of investments lined up at The Grand Ho Tram Strip. We are accelerating the construction of our next hotel tower “The Beach Club”, which is now more than twenty-storey tall and will include 560 five-star hotel rooms and host several new restaurants and amenities. We’ve also recently broken ground on our 2,000 seat amphitheater complex which will open in 2018 and host live entertainment events in Ho Tram, while also launching the first phase of our next resort offering in Ho Tram. We’ve also signed agreements of understanding, including work on a large-scale waterpark and partnerships with global hotel partners and sports teams to further expand the future offerings in Ho Tram.
As much as we are looking to expand accommodation and entertainment options for our guests, we’re also keenly aware of the need for improved transportation infrastructure to the region and the resort. We’re currently working with the Government on the expedited approval of an international FBO airport just 15 minutes away from the resort that would accept chartered flights and be capable of handling larger passenger jets, like the Airbus A320 and Boeing 737.
This will support transportation links into the region and help to grow international tourist footfall into the area and support Vietnam’s tourism goals. Further, we’re now working with PetroVietnam to install a clean, natural gas-fueled power plant to provide electricity to the project well into the future, relieving pressure on the provincial power grid and providing the first of its kind green energy solution to a development of our size in Vietnam. These developments show our ongoing and long-term commitments to The Grand Ho Tram Strip investment and the country of Vietnam.
