Seaside tourism real estate sector: promising but challenging

By Vu Nga - Aug 04, 2018 | 09:02 AM GMT+7

TheLEADERSeaside tourism real estate is becoming one of the most promising sectors and drawing huge attention from prominent investors and developers, according to Dr. Han Manh Tien, chairman of Vietnam Association of Corporate Directors.

Seaside tourism real estate sector: promising but challenging
Dr. Han Manh Tien, Chairman of Vietnam Association of Corporate Directors

Delivering opening remarks at "Vietnam Seaside Tourism Real Estate Forum 2018" held by the TheLEADER magazine, Dr. Tien said that with great potentialities of geographical location, natural conditions, culture and people, Vietnam has been becoming a very attractive destination for domestic and international visitors.

According to the General Statistics Office, the tourism sector in Vietnam has recently experienced impressive growth. In the first seven months of 2018, Vietnam has welcomed nine million international visitors, up 25.4 per cent year on year.

It is forecasted that by 2020, the total number of domestic and international visitors to Vietnam will reach 100 million, of which international visitors account for 20 per cent, reaching the value of tourism exports over $20 billion.

These achievements are gained largely thanks to macro-policies and strategies which have created important legal corridors to promote this sector as well as facilitate the development of the relevant economic sectors including seaside tourism real estate which is an important infrastructure for visitors’ demands of tourism, recreation, entertainment, etc.

According to Research report on tourism and seaside tourism real estate market in Vietnam, the seaside tourism real estate market mostly including condotel and resort started in Vietnam from 2007 to 2008 with pioneering projects having the synchronous infrastructure in Danang.

Following Danang, other coastal cities such as Nha Trang, Phan Thiet and Phu Quoc also quickly began to develop these types of real estate projects.

After a period of slowdown due to the economic crisis, from 2015 to now, the market of seaside tourism real estate and resorts has witnessed good growth in not only key seaside tourism centers such as Danang, Binh Thuan, Nha Trang and Phu Quoc but also other provinces as Quang Ninh, Thanh Hoa, Ninh Thuan, Quang Binh and Phu Yen.

However, the seaside tourism and resort real estate market in Vietnam is facing many difficulties and challenges such as the legal uncertainty of some seaside tourism real estate products; The vital improvement of quality of the seaside tourism real estate products to meet the increasing demand of visitors; the ways in which seaside tourism real estate projects will be effectively managed, exploited and operated to generate profits to investors, etc.