Vietnam’s largest property developer Vingroup, has been entitled to be the strategic partner of Ho Chi Minh City in implementing the Can Gio sea tourism complex development, or Saigon SunBay, said the local media quoting sources from the city’s people’s committee.
Can Gio is a unique sea district in Ho Chi Minh City. Thus, the local authorities want to maximise its tourism potentials with the waterfront project. It has fallen far behind the anticipated progress, although Can Gio Tourist City Corporation (CTC Corp), as the maiden investor, had started the project eight years ago.
Competent agencies had estimated the construction of Saigon SunBay, an 821 hectare complex, which encompasses a beach, hotels and resorts, shopping malls, entertainment facilities and premium villas, would cost around $1.4 billion.
Once Vingroup finishes the 821 hectare shore land, it will learn to deploy the 300 hectare land reclamation expansion.
Meanwhile, not only did CTC Corp failed to meet the schedule, it has also witnessed significant changes in the presence of its shareholders.
Established in 2004, the state-owned firm Saigon Tourist, which is slated to have an initial public offer this year, was the largest founding shareholder with a 50 per cent stake, according to data compiled by newswire ttvn.vn.
Another major stakeholder was Saigon Invest, which initially owned 15 per cent. In 2013, Saigon Invest and its units increased their holding to a collective percentage of 65.49 per cent in CTC Corp.
However, only a year afterward, the Saigon Invest group divested from the company, selling part of the stake to an individual investor, who was holding a controlling rate of 56.48 per cent as of July last year. Later in the year, Saigon Tourist also exited CTC Corp.
In addition, the company’s website domain, ctc-corp.vn, has expired.
Participating in the Saigon SunBay will fortify Vingroup’s collection of nationwide investments, including the most recent approved projects of a hi-tech agriculture centre in central province Thanh Hoa, two Ho Chi Minh City-based underground parking lots, a commercial centre in Quang Binh and an ecological tourism island in Hai Phong in the north of Vietnam.