Bui Ngoc Suong, Chairman of the Kien Giang Province People’s Committee, said that many big international groups have expressed their desire to make investments in Vietnam with projects of up to several billions of dollars.

Phu Quoc seems to be more attractive in the eyes of investors since the Government stated that it would become a tourism, economic and financial centre?

It is true that Phu Quoc has changed vigorously since the plan to develop the island by 2020 was declared. A lot of companies and big groups are planning to inject money in Phu Quoc island, and the investment capital for every project may reach several hundred million to several billion dollars or euros. Provincial authorities have agreed in principle to investment in 46 projects covering an area of 1,855 ha. Of these projects, 12 totalling VND750bil are being implemented, while the investors of the other 36 projects totalling VND15tril are drawing up detailed studies for them. More than 100 domestic and foreign investors have applied to invest in Phu Quoc.

The US-based Rockingham group has proposed the building of a hotel and entertainment complex covering an area of 1,000 ha and costing $1bil. Trustee Suisse and Vinaconex have asked to build a financial-hotel centre with the investment capital of euro2bil. Meanwhile, Starbay and a group of foreign investors want to run the project on an ecological tourism complex and a 510 ha golf course with the total investment capital of $800mil. A Canadian group has also expressed its desire to invest $130mil in a project here.

As far as I know, many investment projects have overlapped, and there is not much land left for new investment projects.

Investment projects have covered nearly all land. Nearly all the projects are domestic owned and small in scale. The problem lies in the fact that small projects were registered first, and bigger projects came later. It is necessary to make adjustments in land projection, but it will be a very complicated task. We have tried to persuade investors to re-project their plans for the sake of Phu Quoc island development, but they are not pleased with the adjustment. The project suggested by Rockingham, for example, will cover the land of eight smaller projects, while Trustee Suisse’s project will infringe upon several projects.

Why didn’t big foreign investors come earlier? Is it because they did not have enough information or domestic investors were faster in making investment?

Domestic investors proved to be very quick in grasping necessary information. Domestic investors jumped on the bandwagon to reserve land plots for themselves right from 2001 and 2002, when the Government announced the plan on Phu Quoc island development. Meanwhile, foreign investors only came when provincial authorities announced the detailed development programme.

Regarding the two big projects valued at several billions dollars, the investors have suggested buildng an offshore financial centre, casino, bank and airports. What does the Government think about these projects?

Offshore financial centres exist in many other countries already. Their projects are close, which include separate airports, banks, seaports and casinos. In general, there are specific regulations for operation, which will not be controlled by the laws of any other nations. However, the model proves to be quite unfamiliar in Vietnam. I personally think that this is an interesting model. If operational, the capital from regional countries and from the world would inflow into the centre, estimated to reach several billions to several tens of billions of dollars every year.

No final decision has been made on this model and these suggestions. I have reported about this to the Government for consideration. We have to wait for the detailed projects from investors for consideration. This is a conditional investment project (the project on casinos must be approved by the Prime Minister).

It is clear that Phu Quoc, with its high potential, proves to be an ideal place for investment. However, is the current infrastructure there a big problem?

It is true that the poor infrastructure remains a big problem. Phu Quoc will need some VND2tril to develop transport by 2010, and big sums of capital to invest in airports and seaports.

Meanwhile, we can arrange VND400bil only. We plan to call for investment in infrastructure, and investors’ sums of money spent on infrastructure will be deducted from the land leasing fees investors will have to pay later.

It is estimated that by 2010, we will be able to raise VND600bil from investors. As such, we will still lack some VND1tril. We are trying to persuade investors to make investment to build main transport routes on the island under the mode of EPC (engineering, purchasing and construction), and local authorities will pay investors with the capital raised from the Government bond issuance. However, the proposal has not received active responses.

Central ministries and branches have been acting as the investors of the main infrastructure projects, including the Duong To international airport, An Thoi international seaport and electricity transmission system, which will be kicked off right in 2007 and 2008. The province has approved the projects on three big water reservoirs on the island, namely Cua Can (35mil cu m), Suoi Lon (1.5mil cu m) and Duong Don (10mil cu m).

The province is calling for foreign investment in the power transmission line. Several investors have expressed their desire to invest in power projects by setting up a subterranean cable system from Ha Tien town to Phu Quoc. They are also interested in wind and sun power projects under the mode of BT or BOT (build, operate, transfer).

What should be the model for Phu Quoc island's development?

Developing high-quality ecological tourism, and tourism associated with rehabilitation, convalescence and conferences, an international financial centre.

Which place would you compare Phu Quoc in the future with?

Phuket in Thailand and Bali in Indonesia. Phu Quoc is located in a central position, which is near many countries in the region. The natural resources and landscapes are wonderful, a land of no tsunamis, which can receive tourists all year round. But I think Phu Quoc will only become a Phuket and Bali from 2020. In 2020, Phu Quoc will be an international trade centre, while in 2008, many projects will be put into operation.

Which nickname will you give to Phu Quoc?

The pearl of Asia.

Source: Tuoi tre