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Copyright © 1996-2008 Vietnam Venture Group, Inc. All rights reserved. Updated April 6, 29008
This project was assigned to others in 2004; V V G is no longer involved in this project and keeps these pages for reference. We have no contact data for the current developers. and offer these pages for historical purposes only.
Prime Minister Approves Master Plan
New name: Sai Gon Atlantis Hotel Resort
24 June 2005
The US's Winvestment - LLC Group has received a license to build a 300 million USD tourism site in Vung Tau city, the southern province of Ba Ria-Vung Tau, according to the province's investment promotion centre.
In addition to a hotel that can accommodate 2,000 guests, the 300-ha Sai Gon Atlantis Hotel resort will also feature an entertainment park with land and water games, a sports complex, including a golf course, and exhibition halls, which can welcome some 100,000 visitors a day.
Construction of the project is scheduled to start in the third quarter of this year and be completed in 2009.
Source : VNECONOMY
NOTICE
This project was assigned to others in 2004; V V G is no longer involved in this project but offers these pages for reference.
The material that follows was the original plan to preserve the integrity of the world's last large open and unified site that possesses all five of the criteria for any successful 5 star development: the site is within one hour of (1) the region's population center; (2) the regional business and financial center; (3) a major international airport; (4) on the beach; and (v) on a major highway.
All financial information must now be addressed to the lead developer, Winvestment - LLC Group. V V G makes no representation that the developer will realize its estimated results or that any example shown here will actually reflect the program's future performance or condition.
What follows below is for historical purpose only. The lead developer will in due time publish its own plans that may vary substantially from those that follow.
Cua Lap Resort Development Company
Master Plan For the Phased Development Of
VIETNAM'S PREMIER RESORT COMMUNITY
"Ours is a Gated, Exclusive Community. Cua Lap Resort puts the needs of your life-style, security, and status above all other considerations.
"The Cua Lap Resort community is most certainly the best way to enjoy life in Southeast Asia, if not the world. Escape from the inner city... for the weekend or the year. Find yourself in a timeless dimension for comfort and style, yet less than one hour in travel time from the hustle that is Ho Chi Minh City.
"Whether you want to avoid the feeling of being victimized, provide a secure yet accessible compound for family or business associates, make a statement about your success, or simply get away from it all, you will be pleased with the opportunities Cua Lap Resort has for you."
Excerpted from Cua Lap Resort, The One of Choice, But Not For Everyone.
VVG achieved the opportunity to promote this as the FIRST major land development offered as a fully foreign invested enterprise. Various products in the Master Plan may later be undertaken as a joint venture or not, as the lead investors will determine. But the Master Plan is offered as a fully foreign invested project. Preliminary approvals to proceed, from both the Provincial authorities and the Ministry of Planning and Investment, pave the way to success.
This is a current, leading example of the willingness of the government of Vietnam to grow to meet the needs of foreign investors. Investors are encouraged to return to Vietnam, or come for a first look. Vietnam has a new and more open business environment than ever before.
Reasons to Invest. Investors with knowledge of the region are looking for traditionally strong reasons to invest. In land and property development, the three leading reasons have always been Location, Location and Location. However, other important considerations are:
Stability of government (politics and economics)
Reliability of workforce (education, experience, loyalty, trainability)
Costs of operations and services (sourcing material, availability of labor, taxes, wages)
Costs and ease of start-up
Incentives to start-up
All these considerations are met and exceeded at the Cua Lap Resort.
Site Location. The Cua Lap Resort is the first beach exit, to be a less than 55 minute drive, from the heart of strategically-significant Ho Chi Minh City (HCMC or Saigon). This is a region with 11 million people and more than $20 billion in foreign invested capital. HCMC is the economic and financial heart of Indochina.
Target Market Opportunity. What is not widely known outside of Vietnam is that a significant segment of the domestic Vietnamese population has the financial ability and desire to support this project. The initial target market is a demographic group of domestic Vietnamese and domestic, ethnic Chinese who are already sending:
10,000 people weekly to Saigon Water Park and Vietnam Water World to spend upwards of $10 per day. Two other water parks are now also in operation in Saigon, and a fourth opened in mid 2000 in Hanoi.
400,000 people each month to Saigon Super Bowl, Vietnam's first shopping mall. New bowling centers have opened city-wide where daily expenditures exceed $10 per person-visit.
Thousands of people each week to Ky Hoa Ice-Skating rink where they spend more than $7 per person-visit.
Every afternoon and evening of the week, bored HCMC residents fill swank coffee shops and discos where they spend more than $10 each evening to hear songs from the mid 1960s and dance to tunes from the mid 1980s. These young, business professionals are looking for upscale entertainment. Until Cua Lap Resort is up and running, they will remain bored.
This same group provides 70% of the operating revenue to leading hotels through their F&B services for family celebrations. Almost 95% of the 3,000+ weekly paying customers at Panorama 33 (restaurant and coffee shop on the 33rd floor, atop the Saigon Trade Center, the tallest building in Vietnam), are from this demographic group.
Regional and local economic problems create a misperception of Vietnam, which is still growing at a remarkable pace in contrast to its neighbors, and many other places in the world. The GDP for 2004 was approximately 7% growth, industrial output is still projected to top 12% growth, and inflation is projected to be kept to single digits well into year 2005.
The projected GDP for 2005 is at the same level. Only China can also make such a claim in all of Asia, but of course, China has no year-round warm water beaches. Thus the people of China are also a target market for the Cua Lap Resort which is also the closest ever year round, warm water beach to all of China.
Read more about the middle and upper class wealth of China and Vietnam.
When the international travelers come to Vietnam in force, the Cua Lap Resort will be ready.
Index: Within this comprehensive page, and linked to this page, you will find:
Architect's Conceptual Drawing and Descriptions of
Each Operational Phase
Location of Site: Area Map
Photographs of the Site
Executive Summary of the Project
Project Concept
Target Market Opportunity
Existing Problems
Solutions To Problems
Exit Strategy
Benefits To Investors
General View of the Project
Benefits To Vietnam
Pre-Feasibility Study
More Information & Contact Data
The Concept Plan
Click on the image below to see Arial View of site
An Architect's Conceptual Drawing
Click on the architect's conceptual drawing below
and focus in on the features.
On the Vietnam's East
Sea (also known as the South China Sea) an architect's conceptual drawing.
The Beach
Click on the photo
below but please note: This
is a very large photo of a very large beach.
It may take some time to down-load
4.5 kilometers (2.8 miles) of virgin beach on which two story structures of 5-star rating
will blend into the environment.
Site Location
An Area
Map
Photographs of the Site
A
Photo Essay
The bay at Cua Lap, with Vung Tau mountains in the distance.
Investor
Photographs
High resolution photos that take a
very long time to load,
intended for candidate investors who have a need for
closer inspection.
The main resort entrance
Project Concept: Cua Lap Resort is an environmentally responsible, elegant, exclusive, entertainment, educational, hospitality, resort, recreation, residency and sports community. Located within an easy drive yet separated from more populated HCMC region, Cua Lap Resort is on a par with the world’s best destination resorts and weekend retreats.
The Cua Lap Resort offers the long sought-after alternative to more raucous, honky-tonk attractions currently available. Cua Lap Resort is the Hilton Head option to Vung Tau City's Myrtle Beach.
Featured at Cua Lap Resort are: 5-star hotels and a tennis club; AAA golf course & club; ocean marina & club, aquarium & IMAX theater; shopping mall with movie complex; offices, apartments, and private villas. We offer a culturally accurate Fishing Village in the form of a living diorama. Also featured is a huge salt-water Fishing Lake stocked with local beauties often exceeding 5 kg (11 lbs), bordered by over 3 km of nature trials winding about our Botanical Gardens. We are also considering a fine arts and performing arts center.
This project is without peers in either the nation or the region. Its 150 hectares (372 acres) are along 4½ km (2.8 miles) of pristine, virgin, East Sea (the South China Sea) beach, unencumbered by any industry, pollution or population. It is the only site that can ever lay claim to being the first seaside beach exit, less than a one-hour drive, from downtown HCMC and its international airport.
There is no beach in competition for the markets captured by the Cua Lap Resort. Vung Tau city's back beach honky-tonk offerings are 12 km removed from and will not impose upon the Cua Lap Resort. Phan Thiet will not ever be closer than its current 3-4 hour drive time from HCMC. Nha Trang remains a 14 hour drive and 1 hour flight (excluding travel time to and waiting time at the airport). Da Nang is a one hour + flight (excluding travel time to and waiting time at the airport).
Return To Index | Go to The Concept Plan | See the Photos
Target Market Opportunity: The greater HCMC region has a current, unofficial population of 11 million, projected to be 12 million when the resort opens. It is home to more than $20 billion in new foreign invested capital and more than half the nation’s new enterprises. The first stage of the project will be fully supported by middle & upper income domestic Vietnamese and ethnic Chinese.
The HCMC per capita annual $1,500 income contradicts this large and distinct group's actual spending habits. Residents from Ho Chi Minh City, Bien Hoa City, and Vung Tau City (all less than one hour away) constitute the same demographic group that now fully support SuperBowl (the first shopping mall and entertainment center in Vietnam) with 400,000 visitors a month, and Saigon WaterPark (the first exclusively water sports park in Vietnam) with over 10,000 paying customers a week.
Almost half of all of Vietnam's 6.4 million motorbikes are found in HCMC. The once ubiquitous Honda Dream has sold for as much as $3,000 when the demand rose beyond supply. However, the pricey Honda Spacey now occupies that slot at $6,500 apiece.
This distinct and readily identifiable group provides 70% of the current operating revenue to the largest and most successful hotels in HCMC via their F&B services, and 95% of the revenue to the Panorama 33 Club (a bar and restaurant at the top of Vietnam’s tallest building), attracting 3,000+ weekly customers in its first summer of operation.
Vietnam's middle class is clearly developing and following closely behind that of China. Read more about Vietnam's new middle class. The people of China are also a target market. There is no year round, warm water beach resort closer to China then the Cua Lap Resort.
In due course, the products offered at the Cua Lap Resort will be substantially used by returning overseas Vietnamese and other foreigners including corporations needing a better retreat. However, profitability during the first five years operation can be driven by the existing domestic population.
Return To Index | Go to The Concept Plan | See the Photos
Existing problems: Foreign investors are facing obstacles. Despite the great potential for recreational, residential, and resort development in Vietnam, there are inherent challenges in Vietnam which when coupled with the current economic turmoil in neighboring lands and a resulting slowdown in Vietnam’s growth, can make those not familiar with this nation suffer with challenges that include :
VVG now enters our twelfth year in Vietnam where we know how to resolve these challenges with workable solutions.
Return To Index | Go to The Concept Plan | See the Photos
Solutions To Problems: Vietnam Venture Group, Inc. (VVG), a corporation organized under the laws of the State of Georgia, USA and operating with an office in HCMC, Vietnam consistently since January 1994, helps foreign investors capitalize on opportunities. VVG has successfully worked with investors and relevant government authorities to properly resolve major challenges, both real and perceived.
VVG has already resolved some of the above listed and other challenges:
Vietnam as a developing nation enhances a misperception that the plight is universal, nationwide. It masks the economic freedom that exists and is now available to a large segment of the people. Per capita income figures for the 82 million people of Vietnam (approximately $400 per year) do not accurately reflect their spending ability, or the actual spending habits, of the general population. The nearly ubiquitous $3,000 Honda Dream motor bike is now being replaced with the $6,500 Honda Spacey motorbike. Nearly every home in the city, if not the nation, has a color TV. Stereos, refrigerators, and mobile phones are now found throughout urban and rural locations.
Regional economic problems also create a misperception of Vietnam. Vietnam's economy is still growing at a remarkable pace (7% in 2004 with higher projections for 2005) in contrast to its neighbors, and many other places in the world. With the Bilateral Trade Agreement now a fact of life, trade with the United States enhanced by Normal Trade Relations (lower tariffs) is already increasing the inbound flow of hard currency from the US for the first time since 1975.
The Cua Lap Resort involves a pre-approved Master Plan for several phased developments, each phase enhancing the profitability of the others. Investors can select to invest in Stage One and any of the successive phases. However, the initial lead investor will also acquire ownership rights to the overall project.
In order to minimize investment risks and ensure both a high success and high rate of return, VVG will continue to work with the Lead Investor to achieve the following:
Return To Index | Go to The Concept Plan | See the Photos
Exit Strategy: The projected Total Investment Capital is $276.3 million. These funds will be expended in phased stages of development. The three inaugural phases of Stage One call for investment capital of $67.5 million for the first hotel, tennis club, IMAX Theater, Aquarium, Botanical Gardens, Fishing Lake and Fishing Village. These funds will be used as follows:
See below for more details. A pre-feasibility study of only the hotel element of this first stage (a $49.4 million investment) shows an annual GOP exceeding 30% in each of the first five years. This study does not take into account even larger rates of return projected from the aquarium, IMAX Theater, and other entertainment components of Stage One.
The potential for IPO gains set aside for the moment, the investment will be structured as a combination of equity and shareholder loans with prioritized repayments to be paid from operating profits before any profit. The initial investment can be recovered in 4 to 5 years. Most of the investment during the initial five years can be secured by assets, cash, contracts and work in hand. Plans have been suggested to raise investment capital with an earlier general sale of equity interest.
An IPO, presuming that the project has suitable financial records and an attractive history / reputation should be possible within five years on a major exchange.
Return To Index | Go to The Concept Plan | See the Photos
Benefits To Investors: Even though the initial investors may elect to purchase only Stage One Development and its first three phases (products), they will enjoy the benefits from owning the entire Master Plan. VVG has already alleviated the most complex problems through various arrangements over the past several years which were achieved through VVG's personal contacts and negotiations with the Vietnamese government .
Key benefits already achieved by VVG are that (i) this is the nation's first major land development project being offered on an exclusive basis as a fully 100% foreign invested enterprise; (ii) the Master Plan has received preliminary approval from the relevant authorities, and (iii) the site has been reserved exclusively for the Cua Lap Resort.
Some of the additional benefits are:
Return To Index | Go to The Concept Plan | See the Photos
FIVE STAR RESORT HOTEL 512 rooms with golf, tennis, swimming, water sports, state-of-art: environmental, fire, power, and security systems.
CORPORATE CONFERENCE CENTER Auditorium capacity for 600; state of art electronic conferencing and break-out rooms.
AQUARIUM & IMAX THEATER Maritime Entertainment & Research; Shark Tank and more to amaze you.
BOTANICAL GARDENS and Exotic Fishing in a 37-acre Lake and almost 2 miles of nature trails in a 20 acre park around the lake and ocean-side.
GOLF "AAA" RATED, 18 hole championship course and Golf Club with a fantasy 19th hole on top of the highest point in the north peninsula region.
MARINA including Club, boat yard and boat slips
RETAIL SHOPPING MALL with Cinema Complex
BUSINESS OFFICES for executives and professionals in close proximity to all site and regional services
APARTMENTS overlooking the Bay, Beach, Golf Course and Marina
VILLAS luxury, private; overlooking the golf course, woodland areas & beach front
ENTERTAINMENT and DINING in clubs and restaurants, including all regional and world favorites.
FISHING VILLAGE provides an authentic, living diorama of life as it was and still is, including homes, markets, shops and restaurants, all on the local economy.
Fine Arts and Performing Arts Center will be considered in the Master Plan to meet the growing cultural needs of the community.
High Rise Development along the 1.6 miles of highway frontage is a down-the-road opportunity. That is not included in the project at this time in order to retain an economy of scale.
Return To Index | Go to The Concept Plan | See the Photos
1. TENS OF MILLIONS OF US DOLLARS in Land Use Fees over 45 years
2. HUNDREDS EMPLOYED during construction & operation
3. ANCHOR PROJECT to support renewed interest in Vung Tau as the provincial prime real estate for all purposes, the main regional recreational outlet, and leading conference center for the nation.
4. The MAGNET PROJECT to attract Regional and World Corporate/Industrial Leaders and families to Vung Tau and Vietnam.
5. ATTRACT VIPs to Vietnam and the Region’s premier resort for golf, recreation, marina, shopping, and all sea activities/sports.
6. The center for CORPORATE, INDUSTRIAL CONFERENCES / SEMINARS.
7. HOUSING and EXECUTIVE OFFICES for leaders, executives and senior managers in the Tri-City area (HCMC, Vung Tau and Bien Hoa).
8. RESTORE the LUSTER of Vung Tau as the premier resort and week-end holiday destination in Vietnam and all of southeast Asia.
Return To Index | Go to The Concept Plan | See the Photos
Pre-Feasibility Business Plan
Excerpts
An Evaluation of the Opportunity For Investment In & Development Of
CUA LAP
RESORT
[The complete Business Plan will be made available to interested and
qualified investors.]
INTRODUCTION
A) Overview Of The Project
This report reviews and analyzes the economics and feasibility of the first two phases of the Master Plan for CUA LAP RESORT. This work covers the anchor hotel’s main building, public rooms and first stage (256) hotel rooms, built on 13 hectares (32 acres) with a combined projected foreign capital investment of approximately US$49.5 million.
Each of the ten elements of the Master Plan is a stand-alone project. However, the overall Master Plan envisions use of approximately 150 hectares (372 acres) of prime South China Sea front property. The site includes more than 4½ km (2.8 mi.) of pristine beach, with naturally forested, rolling hills, natural ponds and streams. The Master Plan is to create the regional center for recreation and relaxation, incorporating five-star hotels, all sports, restaurants, conference center, offices, apartments, luxury villas, and an aquarium. CUA LAP RESORT will attract the region’s domestic residents and international travelers.
CONCLUSION
It is evident from this review and analysis of the industry, the trends of visitor arrivals and occupancy, the product offered, and a conservative appraisal of the projected revenue, the first two phases of the CUA LAP RESORT project are feasible. The initial investment of US$49.5 million is expected to, over the first five operating years, result in a positive (i) Total Operating Revenue estimated at US$66.6 million, and (ii) Gross Operating Profit estimated at US$23.1 million. The ultimate net return to the investors will depend upon factors outside the scope of this report, to include but not be limited to charges for land use fees and taxes.
INVESTORS SOUGHT by prospectus only. Please contact VVG for more information
As planned, this is a $276.3 million project. We will be pleased to introduce Candidate Lead Investors to greater details, to include projected financial analysis. We are only $67.5 million away from success. We seek only Lead Investors and will send a financial analysis only to qualified private investors, corporations and institutions. The developer will not form any limited partnerships.
Stage One development plans project a need for $67.5 million in capital:
- Phases One & Two: Organization, Formation, and Planning $534,000;
- Phase Three: Site Infrastructure, hotel main building & banquet/conference center $17.6 million;
- Phase Four: Hotel room (256), tennis courts & club $31.9 million
- Phase Five: Aquarium, IMAX Theater, fishing lake, botanical gardens and trails, and Fishing Village $17.5 million
See photographs of the site and visit The People Of Cua Lap
Return to: Index, above | The Concept Plan | Monday Morning In Saigon | What Is Vietnam |
* Some of the ideas for this page have been contributed to VVG by Dangtu, Inc. and PiAsian Limited Partners
See Photos of Downtown HoChiMinh City today.
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