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Why invest in Phu Quoc, Vietnam?
Phu Quoc is still genuinely unspoiled by time and tourism, in spite of the increasing investment activity in recent years. Travelers say that "Vietnam is like Thailand twenty years ago". Based on the economic progress Vietnam has made since the Socioeconomic Renovation called "Doi Moi" in 1986, then Phu Quoc would be considered like Vietnam ten years ago!
In a 16-month period from October 2004 to February 2006, the Prime Minister of Vietnam enacted many decisions approving a master development plan for Phu Quoc that provides a variety of preferential policies for domestic and foreign investors. According to these decisions, Phu Quoc is entitled to apply the highest preferential policies permitted by the Vietnamese State. The goal is to turn Phu Quoc into a world-class ecotourism centre while conserving its valuable environmental resources, with a projected total capital of 3,800 billion VND. (see Preferential Polices)
As a result of the government's decision to promote ecotourism in Phu Quoc, many international investors and corporations, recognizing the investment potential, have already developed resorts and businesses on the island (See Related Articles). However, many areas remain undeveloped or under-developed. A "ground floor" opportunity still exists for interested investors. This is the ideal time to take advantage of lucrative opportunities during this booming economic cycle in Phu Quoc. The real estate market on the island is still affordable and there is less business competition at this very early stage in the development of Phu Quoc.
In addition, you may want to consider investing in Phu Quoc at this time, in order to benefit from the many preferential government policies such as visa exemption, transfer of land use rights and home ownership, special tax rates for personal, import and corporate taxes, tourism development incentives, etc. (See Preferential Polices)
Investment Opportunities in Phu Quoc
There is a wide variety of small and large scale business projects available in Phu Quoc.
You may be interested in buying a beach-front plot of land on which to build a family vacation home, or to develop an ecotourism resort/timeshare property. On the other hand, you may just want to re-sell the property for a lucrative profit once the upgraded infrastructure projects are completed and operational.
It may be in your plans to invest in start up business opportunities that do not yet exist on the island, or are perhaps still in the very early stages of development.
Our investment consultants can help you to identify such opportunities and select the most suitable options that match your investment strategy and needs. (See Our Services)
Tourism Growth & Investment Potential for Phu Quoc
In 1986, Viet Nam began to introduce sweeping liberalization in all sectors of its previously hardline, centrally planned, and closed economy. Referred to as Doi Moi, this "renovation" has produced dramatic changes in the lives of Vietnamese farmers, workers, and their households. Agricultural production has soared. The country now welcomes foreign trade, investment, tourists, business people, students, and scholars. Personal incomes have increased, and Viet Nam is a new member of the Association of South East Asian Nations (ASEAN). (Source: www.idrc.ca)
From 1990 to 2005, inbound tourism has exploded with an average annual growth rate ranging from 11 to 14%. According to the Vietnam National Administration of Tourism (www.vietnamtourism.com), in 2005, some 3.43 million inbound visitors came to the country. The World Tourism and Travel Council (www.wttc.org) predicts that Vietnam will have the sixth highest tourism growth rate in the world between 2007 and 2016. (Source: www.ecotourism.org)
Vietnam has become an economic hot spot in Asia, attracting international
investors such as Asian Coast Development (Canada) Ltd., MGM Resorts
International and Harbinger Capital, MGM Resorts International, US-based
Rockingham Asset Management LLC, the Accor Asia Group, and many more. These prominent organizations and individuals are not only talking positively about the economic potential of Vietnam, they are making significant investments throughout Vietnam, including the ambitious development of Phu Quoc Island. This vote of confidence, from internationally successful business leaders, highlights the tremendous investment opportunities that exist at this early stage in Vietnam’s economic emergence. (See Related Articles)
Phu Quoc's tourism industry has flourished since the Government of Vietnam announced its initiatives (See Preferential Policies) to develop the island into an international ecotourism destination by the year 2020. It is anticipated that by the year 2010, Phu Quoc will have the required infrastructure to welcome between 500,000 - 600,000 visitors a year; and between 2 - 3 million visitors a year by 2020.
These projections, along with many other anticipated growth factors make Phu Quoc one of the most potentially lucrative opportunities in Vietnam.