<article>Vietnam based real estate company <a style="color: #000080;" href="http://vingroup.net">Vingroup</a> has got the approval to invest in the $1 billion Vu Yen ecological island in the northern Hai Phong City, after the proposal was put forward by the local authorities.</article>

Vietnam based real estate company <a style="color: #000080;" href="http://vingroup.net">Vingroup</a> has got the approval to invest in the $1 billion Vu Yen ecological island in the northern Hai Phong City, after the proposal was put forward by the local authorities.
Prior to the approval, the Ministry of Planning and Investment had suggested the there be open bids for the project. However, Hai Phong’s authorities had responded saying that Vingroup is the most qualified investor for the project, as it required high financial resources and know-how.
Meanwhile,Vingroup, said the project was financially feasible, with an internal rate of return up to 20.5 per cent. The company anticipates that the project will be implemented within five years until 2020.
The Vu Yen complex will encompass a golf course, an eco park, entertainment facilities and premium villas. A five-star hotel and casino are also in the building plan. Vingroup will also construct a cable car system to connect the island with the city’s mainland.
Officials from the Hai Phong City said the island has a privileged location and will meet the city’s requirements of developing the local tourism industry.
In another development, Vingroup has an opportunity to become the strategic shareholder of Vietnam’s first equitised hospital, the <a style="color: #000080;" href="http://giaothonghospital.vn/">Vietnam Central Transportation Hospital</a>; the Ministry of Transport’s proposal to select <a href="http://ttgroup.com.vn/default.aspx">T&amp;T Group</a> as strategic investor has faced objection from some quarters.
Also read: <a href="http://www.dealstreetasia.com/stories/flc-group-in-race-to-acquire-stake-in-vietnams-first-equitised-hospital-6757/">FLC Group in race to acquire stake in Vietnam’s first privitised hospital</a>
The Ministry of Planning and Investment preserves its view of selling the stake to strategic investors through auctioning, while the Ministry of Finance alleges that the hospital should give priority to companies with experience in the healthcare sector. In addition, the clinic facility is to be opened to more than one partner, as the law allows up to three strategic shareholders.
Apart from Vingroup and T&amp;T Group, another property firm <a href="http://www.flc.vn/">FLC Group</a> and two companies from Singapore (cancer treatment centre Brookline Medical Pte Ltd) and Malaysia are also eyeing ownership in the hospital.
Compared to the Vietnamese competitors, Vingroup has an obvious advantage as it has developed its own healthcare service brand Vinmec.
Also read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/singapore-medical-unit-to-pick-stake-in-vietnams-hospital-4461/">Singapore medical unit to pick stake in Vietnam’s hospital</a>
Valued at VND158.5 billion ($7.4 million), the state will hold 30 per cent in the Hanoi-based hospital. Another 30 per cent will be sold to strategic partners and 31.3 per cent is scheduled for public offer.
Meanwhile, earlier this year, Vingroup has become the strategic partner of the <a href="http://www.vefac.vn/Gioi-thieu-VEFAC">Vietnam Exhibition and Fair Centre</a>, which is now a subsidiary of the real estate titan. It also placed a bid for 80 per cent of <a href="http://csg.com.vn/">Saigon Port</a>, although the Vietnam’s busiest container port offered only 16.5 per cent to strategic partners. The selection of the investor has not been announced.
Also read: <a href="http://www.dealstreetasia.com/stories/vingroup-to-take-charge-of-vefac-investment-activities-tran-van-tan-6118/">Vingroup to take charge of VEFAC investment activities: Tran Van Tan</a>
<a href="http://www.dealstreetasia.com/stories/vietnams-vingroup-buys-80-stake-in-vefac-via-ipo-4231/">Vietnam’s Vingroup buys 80% stake in VEFAC via IPO</a>
<a href="http://www.dealstreetasia.com/stories/vingroup-vietinbank-vpbank-try-for-strategic-partnership-with-saigon-port-7347/">Vingroup, Vietinbank &amp; VPBank in race for strategic stake in Saigon Port</a>
Last week, DEALSTREETASIA reported that Vingroup was entitled to be the strategic partner of Ho Chi Minh City in implementing the Can Gio sea tourism complex development.
Also read: <a href="http://www.dealstreetasia.com/stories/vingroup-chosen-to-develop-ho-chi-minh-citys-critical-sea-tourism-project-8306/">Vingroup chosen to develop Ho Chi Minh City’s critical sea tourism project</a>

Vietnam based real estate company Vingroup has been approved to invest in the $1 billion Vu Yen ecological island in the northern Hai Phong City, after being put forward by the local authorities.

Vingroup to invest in Vietnam's $1b eco-island project

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Vingroup to invest in Vietnam's $1b eco-island project

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief