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Phu Quoc possesses great potential for second home market

Released at: 17:01, 24/05/2017

Phu Quoc possesses great potential for second home market

Photo: Novotel Villas Phu Quoc

Mr. Tran Dao Duc, Deputy General Director of the CEO Group, tells VET about the potential of Phu Quoc Island.

by Linh San

What do you think about the development of the second home market (or holiday home market) in Vietnam at this time?

Vietnam’s second home market has achieved impressive results in recent times, reaching regional and global standards. Many hotels and resorts have been introduced, with rapid construction progress and international quality. In 2016 and the first half of 2017, investment into the second home market has grown considerably, especially coastal projects that possess beautiful locations and improved infrastructure and attract tourists, such as those in Phu Quoc, Da Nang, and Khanh Hoa. Domestic and international tourists are visiting these destinations in rapidly increasing numbers.

The CEO Group recently opened Novotel Villas in Phu Quoc. Do you think Phu Quoc is a wonderful destination for property developers to build second home projects?

Phu Quoc has a great location and is an ideal investment opportunity for the CEO Group and other investors because of the following reasons.

Firstly, it is a peaceful tropical paradise, floating in the warm turquoise waters of the Gulf of Thailand, 50 km from the Vietnamese mainland and a 50-minute flight from Ho Chi Minh City. The island is at the center of ASEAN, just two hours away from its major cities, giving it potential in travel. Because it is located in the Gulf of Thailand, it has ideal weather conditions, with a stable temperature of about 28C, and is not hit by storms, so it is not risky to develop the tourism business.

Secondly, Phu Quoc has natural conditions that are not always available in other cities and provinces. It has 150 km of coastline, with many beautiful white sand beaches. The water is very warm, so tourists can swim at night. This can’t be found in other cities and provinces. Two-thirds of its area is primeval forest, providing fresh air and a good climate for visitors.

Thirdly, infrastructure and technical infrastructure have been invested in heavily on the island, which is ready to become a special economic zone. Phu Quoc’s traffic network was mainly red dirt roads in the past, but now there is a main road running through the island, an international airport, and a tourist port, where ships with over 7,000 passengers can berth. The island also has clean water and underground cables, which have completely changed the face of Phu Quoc. There are also many new projects, such as golf courses, a safari park and zoo, entertainment areas, a cable car, and a casino.

Fourthly, Phu Quoc offers preferential policies, such as a 10 per cent corporate income tax exemption for the first four years and a 50 per cent reduction for the next nine years, exemptions from land rentals for the first 15 years, and 30-day visa exemptions for international visitors.

Fifthly, Phu Quoc will become one of Vietnam’s three special economic administrative zones, creating a breakthrough for the island to take off and contributing to Vietnam’s development.

Sixthly, Phu Quoc’s market is still new compared with other cities and provinces and there are many opportunities for all types of services.

What are the challenges for second home developers at this time?

The more developed the second home market becomes, the more intense the competition and the more sophisticated customers are, so developers need to affirm their brand and reputation and make a difference. Products must come with attractive policies, in addition to quality, timeliness, and commitment.

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