Binh Thuan province returns to spotlight

By Hua Phuong - Apr 06, 2021 | 09:34 AM GMT+7

TheLEADEROwing to many transport projects such as Dau Giay-Phan Thiet expressway , Phan Thiet airport and especially Long Thanh airport, Binh Thuan province will regain its position as the "resort capital" in the next few years.

Binh Thuan province returns to spotlight
Nguyen Van Binh, general director of Hung Loc Phat Group

In recent years, Binh Thuan province has risen strongly after a long sleep to get ahead of a new wave of investment in tourism real estate. The Covid-19 pandemic has had a significant impact on the tourism industry which is considered a spearhead of Binh Thuan. However, when the world has successfully developed Covid-19 vaccine and "vaccine passport" is being considered, Binh Thuan has regained attention of investors. talks with Nguyen Van Binh, general director of Hung Loc Phat Group on how Binh Thuan's tourism real estate market will fare.

In your opinion, why is the economy negatively affected by the Covid-19 epidemic, but real estate prices, including real estate tourism, are still rising?

Nguyen Van Binh: Although Covid-19 has made the economy difficult, housing prices still increase, but depending on the segment and region, there are different increases.

For example, with the apartment segment in the Ho Chi Minh city in the past 2 years, due to difficulties in legal procedures, businesses have been slow in implementing projects, leading to no new supply, but mainly old supply. The scarcity of supply is the reason why housing prices in the Ho Chi Minh City increased.

In Ho Chi Minh City, having difficulties in legal procedures, businesses tend to go to neighboring provinces to invest in improving their infrastructure, which also increases housing prices.

As for the tourism real estate, there is also a bullish trend as many investors expect on the covid 19 vaccine to control the pandemic in the near future. Currently, savings interest rates in many banks tend to decrease deeply, gold prices fluctuate, potentially many risks, so investors tend to choose to buy real estate.

In addition, investors believe that they will have high profits when the pandemic is completely controlled, the international tourism market is restored when countries are gradually implementing "vaccine passports". Moreover, domestic and foreign investors are very optimistic about Vietnam's economic growth in the near future.

It is said that, after a period of booming development, nowadays, some localities have a real phenomenon of over-supply of tourism real estate. How would you comment on this opinion?

Nguyen Van Binh: In fact, some businesses have land bank before, buy at cheap prices and develop into urban areas, tourism and resort complexes. However, this development is rampant, not based on real needs and mainly invests and subleases, depending on tourists.

For example, in Phu Quoc in recent years, the construction is very crowed, but the number of tourists is not too much, the demand for accommodation of local people is not available. That is the reason why now feels like Phuc Quoc has been oversupported in terms of supply, leading to waste.

Retail investors live mainly on the investor's committed interest rate, but this also leads to the risk that when to a certain extent the investor no longer has enough potential, leading to breaking the commitment.

But there are also potential areas with synchronous investment, such as Binh Thuan. Currently, Binh Thuan is changing very quickly in terms of connection infrastructure as well as service infrastructure.

If the completed Phan Thiet airport merely serves domestic passengers, the impact force is greater than Long Thanh international airport and Dau Giay - Phan Thiet expressway.

Because people in Ho Chi Minh City and the Southeastern provinces often choose a short-term sea tourism destination: Ba Ria - Vung Tau. Therefore, when the Dau Giay - Phan Thiet expressway is completed, only half of those tourists choose the Binh Thuan tour, plus the number of international visitors when Long Thanh airport goes into operation, Binh Thuan will explode in tourists.

One more feature, currently international visitors from Ho Chi Minh City to Binh Thuan mostly stayed for a day or two, but later on going directly from Long Thanh to Binh Thuan, they would have a longer stay.

In addition, another factor that plays a decisive role in attracting tourists and keeping them longer is that the infrastructure and services in Binh Thuan are increasingly improved, diversified, with many entertainment services. entertainment from popular to high-end.

You just mentioned Binh Thuan, what do you think is the strength of the local tourism that was once considered the "resort capital" of Vietnam?

Nguyen Van Binh: Regarding sea tourism in the proximity of Ho Chi Minh City, only Ba Ria - Vung Tau and Binh Thuan are highlights. With Ba Ria - Vung Tau has a long history of development and is too familiar, moreover nowadays, the means of transport have developed, so recently Ba Ria - Vung Tau is considered as a place to check in.

As for Binh Thuan in a few years, the transportation system is better, the time to travel from Ho Chi Minh City, instead of 4 hours, it is reduced to only 2 hours, tourists will tend to choose Binh Thuan.

Moreover, Binh Thuan has large complexes of tourism and resort projects, invested by real estate industry leaders. These projects, when completed, also play a leading role in attracting tourists. If there is half of the current visitors to Ba Ria - Vung Tau now choose Binh Thuan, it will reach 8 to 9 million passengers / year.

Along with the new investment wave, projects that play a role in the region's traffic connection such as Dau Giay - Phan Thiet expressway, Phan Thiet airport, especially Long Thanh airport ... in just a few years, Binh Thuan will regained its position as "resort capital".

Binh Thuan province returns to spotlight
Rows of shophouses under construction in Mui Ne Summerland

It is known that Hung Loc Phat is developing the Summerland project in Phan Thiet (Binh Thuan), so how is the current progress?

Nguyen Van Binh: For this project, Hung Loc Phat is currently constructing and completing phase 1 low-rise zone.

The customer of the Summerland project is mainly from Ho Chi Minh City, Hanoi and local visitors only account for about 10%. Summerland has the advantage of not only serving tourists but also serving local people who need housing because the Summerland is located in Phu Hai ward, very close to the center of Phan Thiet City.

Another advantage is that the Summerland is housing, apartments to stay, long-term ownership, not tourist apartments. In addition, the utilities of the project are also well invested and diversified by Hung Loc Phat Group.

In the tourism real estate segment, besides Summerland, are there any other development plans in Hung Loc Phat? How is the land fund of Hung Loc Phat now?

Nguyen Van Binh: Currently we are concentrating resources to develop Summerland and other apartment projects in Ho Chi Minh City.

The total land fund currently Hung Loc Phat has more than 100ha, the company is promoting the development of more land fund in neighboring provinces and has a convenient location connecting transport infrastructure to HCM City.

In the coming time, Hung Loc Phat will invest in Can Giuoc (Long An), Dong Nai and Binh Duong.

Hung Loc Phat is developing with a strong stance. In addition to real estate, There are also energy and construction materials. So what is the core segment of Hung Loc Phat in the coming time?

Nguyen Van Binh: Currently and in the near future, real estate is still identified by Hung Loc Phat as the core segment because it accounts for over 70% of the company's total revenue.

In addition to Summerland, Hung Loc Phat is investing in many other projects such as Hung Phat Green Star (District 7), Hung Phat Silver Star (Nha Be district), The Golden Star (District 7).

And the energy segment is currently in the investment phase.

The third segment of Hung Loc Phat's business is exploiting and trading construction materials.