The investment agreement between Vietnam’s multi-industry corporation IPPG and Kien Giang Province People’s Committee has been inked in late July, within the context of the Kien Giang Investment Promotion Conference 2019. The former, accordingly, has pledged to invest over VND6.83 trillion ($296.95 million) to establish the tax-free zone in the Pearl Island of Vietnam.
The tax-free zone will consists of 12 main categories, including the enclosed tax-free area and the commercial area located just outside the tax-free area, featuring factory outlets, duty-free supermarkets, food and beverage stores, entertainment complexes, and other facilities. The entire zone is to be built on an area of up to 101 hectares on the island.
The tax-free zone is anticipated to help promote Phu Quoc as an international tourist destination of the country.
IPPG has also exploited other areas like Van Don, Bac Van Phong and Danang to set up the tax-free zone over the past two years. The group, however, has not cemented any particular deal with the government yet.
Apart from IPPG with its tax-free zone, some 20 other businesses have also been approved in principal by the authority of Kien Giang for investment in Phu Quoc, worth over VND43 trillion ($1.87 billion). In addition, various agreements have also been seals between the province and 25 firms to invest in 36 projects there, on an estimated capital of VND150 trillion ($6.52 billion).
IPPG took part in the development of Cam Ranh International Airport in Khanh Hoa province in 2016 and is currently operating its duty-free chain in major airports in Vietnam. Each year, the group claims that it pays on average VND1.95 trillion ($84.78 million) in tax to the government.
According to Kien Giang Province Tourism Department, Phu Quoc has attracted so far 256 tourism projects, with a registered capital of VND327 trillion ($14.22 billion). Of the 178 projects that received the investment license, 38 are currently under construction while 40 have been put into operation.
The number of visitors arriving at the island has increased robustly, with 2.26 million reported in the first half of the year, an up of 35.9 per cent on-year. International tourists have also grown stoutly, recording a rise of 35.5 per cent on-year with 392,000 visitors.
Although Phu Quoc has had a safari park, casinos and a modern cable system, the island still lacks of large-scale entertainment and shopping facilities for tourists.
The completion of the Grand World Phu Quoc project, with around 1,000 shophouses to be launched in the coming time, is promised to turn the northern area into a shopping and entertainment hub.
Another project is presently developed by Sun Group in the south of the island, with 168 shophouses to be brought to the market upon its completion.