US firm’s $86m Danang resort plan a step closer

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Báo Đầu Tư English - 91 month(s) ago 22 readings

A proposal by a US company to build an $86 million resort and entertainment project on the Danang coast received approval in principle from the local authorities last week.

Silver Shores, which eyes setting up a joint venture with a Vietnamese company, had earlier submitted to the Danang People’s Committee a pre-feasibility study for the project.

The company hopes to build a 1,000-room five-star resort and a foreigners-only special entertainment centre next to Furama Resort near the Marble Mountains.

The people’s committee has instructed its investment promotion centre to work with the developers to clear land lease and investment procedures for the 20-hectare project before applying for the investment licence.

It would be the second American-backed resort project in Danang behind a $24 million five-star property in Non Nuoc beach that is being built by Magnum.

The new project is located in an area where local authorities have commissioned WATG, a well-known US planning company, to work out a masterplan for the whole area, envisaging the construction of 50,000 hotel rooms.

The special entertainment centre, which includes a casino offering cash prizes, could find licensing a ticklish issue.

The government issued a notice two months ago that it would not consider licensing new casino projects exclusively for foreigners and Viet Kieu, which effectively halted resort projects from adding casino services.

A source from the Danang Department of Planning and Investment revealed that several other companies had expressed interest in adding casinos to their multi-million dollar resorts.

However, industry insiders were forced to wait for casino licensing rules to be relaxed before going ahead, he said.

In spite of being the economic hub of central Vietnam, Danang’s only five-star resort at the moment is the 200-room Furama. Several other developers have submitted up-scale resort projects but few have actually taken off.

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