HO TRAM, VIETNAM

MARKET REPORT
OCTOBER 2016

CONTACT US
QUO Indochina
140 Nguyen Van Thu Street, Đa Kao Ward
Ho Chi Minh City, Vietnam
info.hcmc@quo-global.com
CONTENTS
Introduction

Overview

Second Homes

The Future of Gaming in Vietnam

The Arrival of International Operators

Ho Tram at a Glance

Foreign and Domestic Tourist Arrivals

Domestic Comparisons

Hotel Supply and RevPAR

Second Home Supply

Ho Tram Infrastructure

Future Projects

Acknowledgements

About QUO
 HO TRAM, WITH ITS POWDERY
WHITE-SAND BEACH, ACCESSIBLE LOCATION
AND WORLD-CLASS RECREATIONAL FACILITIES,
IS ATTRACTING FOREIGN INVESTMENTS AND
ACCELERATED NUMBERS OF TOURISTS.
THIS SMALL COASTAL TOWN IS NOW ON TRACK
TO BECOME ONE OF ASIA'S PREMIER LEISURE
DESTINATIONS.

03
OVERVIEW
ocated in the district of Xuyen Moc in Ba Ria-
Vung Tau Province, Ho Tram offers residents
of Ho Chi Minh City (HCMC) an exclusive
getaway close to the bustling metropolis. In
February 2015, the inauguration of the Long
Thanh-Dau Giay expressway dramatically
shortened the travelling time from HCMC
to Ho Tram. Previously taking three to four
hours, the expressway reduced the journey
to just two hours. This ease of accessibility,
combined with its inviting climate – an
average yearly temperature of 28 degrees
Celsius, with low rainfall and no seasonal
typhoons – has already made Ho Tram an
attractive place to visit. And its three ports
capable of accommodating international
cruise ships only amplify the area's
impressive tourism prospects.
Since 2011, the number of visitors to Ba Ria-
Vung Tau Province has steadily increased.
The first six months of 2016 drew nearly
9.5 million arrivals, 307,408 of whom were
foreigners, according to the provincial
tourism department. Timo Schmidt, the head
of International Residential Sales and Leasing
at Savills HCMC, predicts that “Ho Tram will
become the foremost resort destination
for weekenders from HCMC, with a variety
of projects at different price points under
way”. Ba Ria-Vung Tau Tourism Department
has estimated that, by 2020, there will be
approximately 25.3 million arrivals per year
to the province.
04
HO TRAM CONTINUES TO MAKE A STRONG
NAME FOR ITSELF IN THE HOSPITALITY
AND REAL ESTATE SECTORS, PROVIDING
A BROAD RANGE OF LUXURY ACTIVITIES
AND ACCOMMODATION. THERE IS
STILL A LOT OF ROOM FOR GROWTH,
PARTICULARLY IN TERMS OF AMENITIES
AND SERVICE.

ost industry experts agree that the disparity

between international and local tourist
numbers is due to the lack of suitable
amenities for foreign visitors in Ho Tram
and the rest of the Xuyen Moc district.
They are confident, however, that this will
soon change. Olivier Do Ngoc, managing
partner of Dynasty Investments, believes that
Ho Tram “is turning into a luxury destination
for both Vietnamese and international
customers, with subsequent facilities,
a casino and a golf course positioning
the destination as an emerging luxury
destination”. He is also positive about the
growth of Vietnam’s tourism prospects as
a whole. “Vietnam is still in its early days
of tourism development although it has a
lot to offer, including beautiful and pristine
beaches, renowned local culture and food,
and resorts which are increasingly offering
attractively priced holidays at international
quality standards.”

05
SECOND
HOMES
C
urrent residential projects in Ho Tram are
mostly aimed towards the second home or
holiday home market. Existing projects such
as The Sanctuary and upcoming projects
including The Hamptons Ho Tram and
Sanctuary Phase Two offer luxury-standard
living at a reasonable cost. Prices currently
range between USD350,000 and
USD1.1 million for a villa, with many offering
net revenue sharing and attractive yields of
up to 8%. Marc Townsend, managing director
of CBRE Vietnam and a long-time resident of
Ho Chi Minh City, is confident that Ho Tram is
primed for second-home development. “It’s
the closest place to go to the beach [from Ho
Chi Minh City] on the weekend, and as more
Vietnamese people and families [want to] do
that, I think it’s got a huge future.”

06
 s the first fully licensed casino in Vietnam,
The Grand Casino currently offers 90 tables
and 614 slot machines, and is expected
to expand to 180 tables and 2,000 slot
machines. Only those with foreign passports,
however, are currently granted access to
casinos within Vietnam. “A casino business
in Ho Tram will help to create jobs for local
employees, in addition to developing the
province’s transportation and infrastructure,”
David Lim, a managing partner at ZICOLaw,
which advises foreign investors on their
investments in Vietnam, explains. “This
is seen in Singapore, whereby its two
integrated casino resorts have contributed
between 1.5 and 2% to Singapore’s GDP, and
created more than 20,000 jobs. Vietnam's
Grand Ho Tram Strip opened its first
international casino resort in 2013, and has
attracted many tourists, with tourism turnover
increasing by 23% in 2014 compared to the
previous year.”
THE FUTURE
OF GAMING
IN VIETNAM
Under Vietnamese law, any form of gambling
by Vietnamese citizens is prohibited. A
draft decree submitted by the Vietnamese
Ministry of Finance to the National Assembly
in mid-September 2016 maintained
those restrictions, but the issue remains
controversial, and any decision is far from
final. In an interesting turn of events that may
hint towards the future of gaming in Vietnam,
officials of Ba Ria-Vung Tau Province have
agreed on a site for an airport servicing Ho
Tram. The airport will be relatively small at
around 200 hectares – designed primarily
to serve Vietnamese customers travelling
from other provinces – and will be built by
The Grand Ho Tram. Before construction
can begin, the airport has to be added
to the national zoning area for transport
development, and then submitted to
Vietnam’s Ministry of National Defence and
Ministry of Transport for comment.
07
 THE ARRIVAL OF
INTERNATIONAL
OPERATORS
I
nternational operators have clearly
recognised the potential of Ho Tram and
have begun their entrance into the market.
Spanish hotel chain Meliá will manage a five-
star resort within The Hamptons Ho Tram that
will provide 99 villas and 288 condos, and
operate at an international standard. Dynasty
Investments plans to introduce international
hospitality super-brand Club Med to Vietnam
with a 1.2-kilometre beachfront development.
The Grand Ho Tram signed an MOU with
Coteccons in May 2016 for the construction
of a second hotel tower, valued at USD75
million. It also has plans to add a USD200-
million condotel with more than 1,000 units,
integrating a significant residential component
into the resort. According to Gary Martin, head
of development at Asia Coast Developments
Ltd. (ACDL), the current developer of The
Grand Ho Tram, "The second tower, a five-
star hotel of 560 rooms, will recommence
construction before the year’s end with a
completion date projected in late 2017, [and]
will add further options to both local and
international tourists.”
Currently, there are approximately 1,214 hotel
rooms in Ho Tram operating at a three- to
five-star standard. It is expected that, by
2019, this number will have increased to
approximately 2,085. An overwhelming
number of experts envisage Ho Tram as
Vietnam’s answer to Thailand’s Hua Hin. With
similar proximities to major business centres
(Ho Chi Minh City and Bangkok), pristine
beachfront and ample opportunities for
development, the comparisons come easily
and are clearly evident.
INDUSTRY EXPERTS EXPRESS GLOWINGLY
POSITIVE VIEWS ON THE FUTURE OF
HO TRAM. WITH EVERY NECESSARY
ELEMENT TO FULFIL ITS POTENTIAL AS
VIETNAM’S ULTIMATE WEEKEND GETAWAY
PERFECTLY ALIGNED, IT IS ONLY A MATTER
OF TIME BEFORE HO TRAM’S SUCCESS
COMES TO FRUITION.
08

LOCATION
TRANSPORT
From HCMC to Ho Tram:
2 hours by car on expressway;
or 75 minutes by ferry to Vung Tau
+ 45 minutes on road
TEMPERATURE
The yearly average temperature
is 28 °C
Located within Ba Ria-Vung Tau Province
in Xuyen Moc District
POPULATION
HO TRAM 1.06 million in 2014 for
AT A GLANCE Ba Ria-Vung Tau Province;
162,356 for Xuyen Moc District
DISTANCE
125 kilometres
southeast of HCMC
09
 Da Nang
858 kilometres from HCMC
1 hour 15 minutes
THAILAND
LAOS

CAMBODIA
Nha Trang
433 kilometres from HCMC
1 hour

Phan Thiet
219 kilometres from HCMC
Ho Chi Minh City 4 hours

Ho Tram
Phu Quoc
1 hour 30 minutes Vung Tau 125 kilometres from HCMC
95 kilometres from HCMC 2 hours
1 hour 30 minutes

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FOREIGN AND DOMESTIC TOURIST ARRIVALS
INTO BA RIA-VUNG TAU

AVERAGE LENGTH
OF STAY FOR IN 2015 ESTIMATED 2020
TOURISTS

16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2011 2012 2013 2014 2015 H1 2016

Domestic Arrivals International Arrivals Source: Ba Ria-Vung Tau Tourism Department

11
 DOMESTIC COMPARISONS

DA NANG NHA TRANG PHU QUOC

VISITOR NUMBERS Total 2015: 4.6 million 9M 2016: 3.6 million Total 2015: 1.5 million
Foreign: 1.25 million Foreign: 869,985 Foreign: 164,000

AVERAGE STAY 2 days 3–4 days 2.4 days

AVERAGE ROOM RATE

(3-5 STAR) USD80 per night   USD68 per night   USD153 per night
Source: Savills - Phu Quoc Report 2015
 
SECOND HOME SALES 2015 – 180 units 2015 – 481 units 2015 – 850 units
(CONDOS AND VILLAS) H1 2016 – 1,644 units H1 2016 – 1,648 units H1 2016 – 636 units
Source: CBRE - Vietnam The New
Hotspot for Hotels in Asia

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HOTEL SUPPLY REVENUE
PER AVAILABLE ROOM (USD)

2,500

2,000

Source: Savills H1 2016

Source: Savills H1 2016

1,500
$42 $56
1,000
NHA PHU
TRANG QUOC
500

0
2012 2016 2017F 2018F 2019F

Previous Supply The Grand 1

$58

Source: Savills H1 2016

Carmelina The Grand 2

$80
Vietsovpetro The Hamptons 1
The Hamptons 2

Source: Agoda H1 2016

DA NANG

HO TRAM
3-5 STAR HOTEL ROOM SUPPLY 2012-2019F
(EXCLUDING VILLAS)

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 SECOND HOME SUPPLY

250
VILLA SUPPLY 2016-2019F
200
Sanctuary 1
150
Sanctuary 2
100 Gallery 1
The Hamptons 1
50 Gallery 2

0 The Hamptons 2

2016 2017F 2018F 2019F

1,250 units TOTAL VILLA STOCK H1 2016

PHU QUOC
(EXISTING AND LAUNCHED UNITS)
1,200 units
DA NANG
800 units
NHA TRANG
230 units
HO TRAM
Source: CBRE

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 HO TRAM INFRASTRUCTURE
ACCOMPLISHMENTS AND CHALLENGES
GAMING LAWS
Under current laws, any form of gambling by Vietnamese
citizens is prohibited. While a draft decree submitted
to the National Assembly in mid-September 2016
chose to maintain these restrictions, the issue remains
controversial and that decision is far from final.
ELECTRICITY AND SANITATION
In recent years, the regional authorities
have invested in the proper road, electrical
and sanitation infrastructure for the area,
ensuring sustainable growth in Ho Tram.
GOLF COURSES
The Bluffs Ho Tram Strip offers 18 holes of ‘links
style’ championship-quality golf (clubhouse area:
2,300 sqm; practice area: 3,000 sqm). A second
golf course is also due to be opened.
ROADS
Opening of the HCMC-LT expressway reduces travel
time to Ho Tram from four hours to two.
Future Ben Luc-Long Thanh highways and Bien Hoa-
Vung Tau highways will continue to improve accessibility.
AIRPORTS
Ho Tram Airport: A 200-hectare site has
been approved, with construction to be
completed by The Grand Ho Tram.
Long Thanh International Airport: With its
first phase due to open in 2025, Long Thanh
will be the largest airport in Vietnam with a
capacity of 100 million guests per year.
Tan Son Nhat Airport: Capacity is being
increased at HCMC's main airport to handle
up to 40 million guests per year.
FOREIGN DIRECT
INVESTMENT
International Cai Mep-Thi Vai Port and 15
industrial zones have been developed on a
total area of 8,500 hectares.
In 2015, foreign direct investments registered
127 projects worth a total of USD27 billion.
Local investment projects tallied at 442 with
a total amount of VND240 trillion.
Source: Nguoi Tieu Dung Newspaper
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FUTURE PROJECTS

GALLERY VILLAS
• Developed by ACDL (Canada)
• Branded and operated by
The Grand
• Located in The Bluffs
Ho Tram Strip
• Phase 1: 32 luxury villas;
Phase 2: 28 luxury villas
• Price range: USD1.4 to 1.6
million
• Completion in 2017 for Phase 1,
2018 for Phase 2
THE GRAND
HO TRAM PHASE 2
•D eveloped by ACDL (Canada),
USD75 million investment
•5 59 five-star hotel rooms;
world-class facilities
• 700-900 condo project
• Opening in 2017
THE SANCTUARY
PHASE 2
• Initially developed by
Sapphire (Australia)
• 44 semi-detached, high-end
villas
• Price range: USD350,000
to 850,000
• Scheduled for opening in
Q2 2017
THE HAMPTONS CLUB MED
HO TRAM
• Developed by Hai Thuan
•D
 eveloped by Tanzanite Intl., Tourism Services
USD80 million investment Investment
•R
 esort operated by • USD47 million investment
Meliá Hotels (Spain) •W  orld-class all-inclusive
•F
 ive-star resort inclusive of resort
99 villas and 288 condos •3  00 rooms
•P
 hase 1: 59 villas and 144 •S  cheduled for opening
condos; Phase 2: 40 villas in 2019
and 144 condos
•S
 cheduled for opening in
Q2 2018 for Phase 1
(Phase 2 in 2019)

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 10

8
9

7
6
1 2 3 5
4

1 Vietsovpetro
2 The Hamptons Ho Tram
3 Ho Tram Beach Boutique Resort
4 Club Med
5 The Sanctuary

FUTURE AND 6
7
The Sanctuary Phase 2
Carmelina Beach Resort
EXISTING PROJECTS 8 Gallery Villas
9 The Grand Ho Tram
Future project Existing project 10 The Grand Ho Tram Phase 2

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ACKNOWLEDGEMENTS
QUO Indochina wishes to express its sincere thanks
to the following people for their invaluable support
and insights regarding Ho Tram.
TIMO SCHIMDT
HEAD OF INTERNATIONAL
RESIDENTIAL SALES AND LEASING
SAVILLS HCMC

MARC TOWNSEND GARY MARTIN

MANAGING DIRECTOR HEAD OF DEVELOPMENT
CBRE VIETNAM ACDL

OLIVIER DO NGOC SON NAM NGUYEN

MANAGING PARTNER CHAIRMAN
DYNASTY INVESTMENTS TANZANITE INTERNATIONAL

DAVID LIM PHONG LAI

MANAGING PARTNER CHIEF EXECUTIVE OFFICER
ZICO LAW NORFOLK GROUP

STEPHEN WYATT PHUC PHAM

COUNTRY HEAD MANAGING DIRECTOR
JLL VIETNAM VIETHOME

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19
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