Low Occupancy Rate Did Not Hinder Developers From Creating More Beachfront Resorts

One must have noticed that as noisy as the southern part of Phu Qoc Island is, the opposite can be said when it comes to the northern part. Several years ago, a road was opened to the public that is connecting Ganh Dau Cape and the town center of Duong Dong. On this very road, one will be able to see construction projects that are ongoing. These projects are mostly hotels and resorts.

This occurrence is not only familiar in the streets of Phu Quoc, the same situation has been happening in Thanh Hoa, Hai Phong Nha Trang and Da Nang since the last two to three years there has been endless construction projects going on. The listed cities and provinces are believed to hold special potential in attracting tourists in the future.

According to a business Trinh Bang Co who has 30 years of experience in the business, in order to build a 3-star hotel featuring 50 to 70 rooms, it is necessary to have an investment capital of at least 100 billion Vietnamese dongs. The problem is that the revenue will only be around 20 billion for each year but the amazing fact is that there are still many hotels on the rise.

Among the construction projects are not just hotels but there are also condotels being built. These usually cost billions of dongs and they are cropping up all over the place. Buyers are paying for the condotels while the developers are leasing from them with a promised interest rate of between 10 to 12 per cent.

The market is now busier than ever since the introduction of major projects such as the Queen Pearl which is located in Phan Thiet City, the Solie Anh Duong located in Da Nang, Sentosa City constructed in Da Nang, Grand World located in Phu Quoc and Coco Riverside that can be found in Da Nang.

Despite the fact that the northern part is not as noisy, there are still investors coming to that part of the country such as FLC, Sungroup and VIngroup. Vietnam is following the footsteps of Thailand and is trying to make a name of their own by launching projects similar to beachfront resort in Hua Hin and many others found in the country.