The eco- property market segment is now wide open for investors because the demand for luxury resorts is climbing. Vietnam Business Forum interviewed Mr Le Duc Hai, Director of INT Group, on the eco- property projects his company is undertaking.
The concept of eco-property is narrowly defined as property surrounded by green space and lakes. Do your projects help broaden that definition?
It is true that there is no common definition of eco- property in Vietnam. Sometimes, there is an abuse of words or the concept is used only in part of a project. INT Group always considers the "ecology" criterion to organise management and operate its resort chains. During our implementation process, we are always improving our products to gradually reach the highest eco-friendly standards. All business activities are aimed at enhancing the progress of products for the success and benefit of customers and partners.
Criteria and standards of investment, sanitation, ecological planning, ecological space and ecological services are regularly updated. Using nature to create a synchronous green living environment inside and outside our projects, aiming to satisfy users, this is the difference of INT Group. In 2010, INT will provide different product lines with strict standards, helping to solidify the definition of eco- property.
Currently, the eco- property market segment is very attractive. In your opinion, what are the potential risks of eco- property projects far from the downtown?
Investors can be easily caught in the following problems: improper time to invest, improper investment model to maximise their strengths and minimise their weaknesses, or ineffective use of investment, design and management consultancy. They will fail. Without in-depth study and analysis, investors will face failure sooner or later. Another reason for failure is investment for quick profit by investors looking to take advantage of short term market trends.
Another risk arises from planning policies, planning management, investment policies and investment management, currently driven by localised thought in Vietnam. If planning orientation in a province, a district or an area is not clearly defined, or is impractical and short-term, investment projects and investors will face higher risks in the future.
Besides, trends in market development and competition at present are also risk factors for investors. In the process of competing for market share, price-based, not quality-based, competition is dangerous for all investors. This can turn a high potential area into a low-end tourist area. Thus, coordination between investors and authorities is necessary to arrange the market. Otherwise, although regional potential may be high, the application will be weaker.
INT Group is currently carrying out projects in Hoa Binh, Son Tay, Ba Vi and other localities. Why did you choose Ky Son of Hoa Binh province as a destination for your ecological resorts?
Taking both the natural landscape and geographical location into consideration, Ky Son satisfies all the prerequisites to become a top-tier eco-resort. With lakes, streams and hills interspersed with majestic limestone peaks, the primitive beauty of Ky Son catches the fancy of all visitors. Besides, the unique natural landscape remains untouched, a plus in comparison with other localities surrounding Hanoi.
As a gateway of Hoa Binh province, Ky Son district is adjacent to Xuan Mai urban zone, one of five satellite cities of Hanoi. The main road linking Ky Son and Hanoi is Lang - Hoa Lac Road. Furthermore, the upgrading of the National Road 6 - a connector for Xuan Mai town and Ky Son district - is also expected to start in 2010 and be completed within two years. At that time, it will be only a one-hour drive from Hanoi to Ky Son – making it an ideal destination for Hanoi citizens and international tourists.
INT Group recognised this prospect early when it claimed the responsibility for managing and operating an upmarket ecological resort chain called The First Villas & Resort in Ky Son. In my opinion, this is the right direction for the development of high-end ecological resorts, for the creation of a comprehensive green space to generate a second home close to nature for people, thus helping improve the quality of life. According to Savills, a property research firm, the year 2010 witnesses the formation of a new trend for ecological resorts and this demand will grow in following years.
Can you describe the development of eco-property resorts in northern Vietnam in general and in Ky Son, Hoa Binh in particular in the next five years?
The need for a green living environment is certain. Eco- property - very popular in developed countries - is usually worth 3 times downtown refidences because it improves quality of life. Indeed, the eco-property market will have much improvement in the next five years. And certainly, there will be new higher-grade, more attractive projects built. In the scale of Ky Son area, Hoa Binh province, there will be many positive changes in the next five years as the traffic system will be upgraded.
Reported by Luu Hiep