Lagoon Eco-Park, Lang Co

Tourism to central Vietnam has seen annual growth of around 25% over the last decade, and looks set to continue growing apace. Lang Co is still an unspoilt paradise which is now also growing rapidly as a new tourism destination with several major hotel chains already built or building in the valley.

With the new north-south highway passing directly through Lang Co is perfectly located midway between the main tourist centres of Da Nang and Hoi An just to its south and Hue and Chan may Bay to its north.

Apart from the surrounding natural beauty, IRC has chosen the lagoon site because the calmer waters of the lagoon boast clarity and low salinity and unlike the open ocean in the area, there are no large waves or potentially dangerous currents. This will find great favour with both the 77% of all international tourists in the region who are Asian, as well as with the even faster-growing domestic Vietnamese market which will become the parks main target market.

More and more domestic Vietnamese holiday-makers, growing more wealthy each year, are now looking for new places of scenic beauty and a family-friendly place to relax which can offer a wide range of safe activities for children, families and also for those visitors who want more natural adventures for a few days.

South China Properties (HK) Ltd (SPC), is an IRC owned Hong Kong company, and is the intended vehicle for the development. SCP has reserved the rights over this prime parcel of 50,000m ² of lagoon waterfront land. The land lease can be enlarged to up to 10,000m ² if required.

Upon financial commitments by investors, SCP will prepare a project design concept and business plan for presentation and submission to Hue Provincial Government.

The site is quiet and with maximum lagoon and river frontage but also with transport access.

The land is flat, with a sandy base with bedrock close to the surface. It sits approximately 0.5 to 2 metres above the waterline. The lagoon is fed predominantly from surrounding mountain rivers of substantial width so is not prone to tidal influence even though there is direct sea access through a narrow channel 2km from the site.

Natural strips of white sand line the shore and the waters are calm and reflect the breathtaking mountain backdrop. More white beach sand can be added to extend the existing beaches by the lagoon.

The site sits approximately 1km from the entrance to the new Da Nang-Hue highway tunnel. This new 7km tunnel built through the mountain at a cost of over USD 2 billion now connects directly to Da Nang city and its airport both only some 20 minutes drive away.

The highway continues 50 minutes north to Hue city and airport. The site is also just 1km from the exit of the famous winding old French road over the High Van Mountain Pass from Da Nang. This scenic mountain drive is one of the regions most popular tourist attractions and was made internationally famous by Jeremy Clarkson of “Top Gear” fame who called it the most scenic stretch of coast road he had ever driven on.

There are numerous feeder points for customers for day activities and longer stays.

Pick-ups from the nearby Revolution Express rail station and the other local resorts and hotels will include open-sided converted vehicles, open-topped jeeps and boats and buffaloe carts.

Target markets for day-only activities include

• Da Nang city residents. The resort will offer transportation to and from both Da Nang and Hue cities and their international airports.
• Tour groups from Hoi An, Da Nang and Hue
• Tourists and residents travelling between those cities
• Residents of the ever growing number of hotels in Lang Co such as Laguna Lang Co resort
• Cruise line customers from the nearby new international port just a few kilometers away in Chan May Bay
• Day trippers aboard the Revolution Express train with its Lang Co station less than 1km from the site. The Revolution Express estimates daily patronage at 200 pax per day in year 1, climbing to 500+ pax a day within five years. The Revolution Express is seeking daily activities and rest and relaxation facilities for its customers between return journeys and will tailor its schedule to allow for 3 to 4 hours layover. Steam train ride and lagoon activity centre stays will make a great combination of family groups both foreign and local.

The central coast of Vietnam is a very fast developing area. Vietnamese tourists have always flocked to here to escape the winter chills in Hanoi and the sweltering heat of Saigon and the Mekong basin.

Lang Co sits right in the middle of the central Vietnam riviera but due to its protective mountains which caused a lack of transportation facilities in the past, it is only now opening up and is the latest new tourist destination in the region.

Today Lang Co still retains a peaceful village atmosphere traditionally focused on fishing and local handicrafts. Lang Co has escaped the rapid hotel and resort growth seen in Da Nang, Hue and Hoi An until recently, but this is set to change now with the new access of the highway tunnel and the new Revolution Express train station in Lang Co.

Also in Lang Co, just 20 minutes drive from the site, the new cruise ship port for central Vietnam is being developed. Over 100,000 visitors arrived there by ship in 2019.

All the beach-front land in Lang Co is already completely bought up by investors from Hanoi or overseas who are either building, as in the case of the new Movenpick Resort, or surveying to develop. We will target all these new resorts and hotels to offer additional activities not available within their facilities.

The local and provincial governments are fully behind the development of tourism facilities in the region. As such attractive government policies in the area include tax breaks and cheap land leases. As a low socio-economic area, the Lagoon Eco-park will be entitled to the first 4 years of profitable returns tax-free and a further 9 years at 50% of prevailing taxes which will equate to only 10% corporate tax. Further tax breaks are available in staffing with 50% salary tax reductions for the life of the project. Duty-free imports of equipment are also offered as part of their economic development plan.

IRC is seeking partners to work with them to raise up to USD1.8M to develop and operate the Lagoon Eco-Park.

The capital raised will go first towards securing the extendable 50-year land lease, which will require a one-time payment of USD10 per square metre for the duration of the 50-year lease, this totals USD500,000. This is a very cheap price and well below comparable market pricing. This beneficial land deal is only available to the IRC directors due to the years of work they have put in to facilitate the development of the Revolution Express.

To save on capex upfront, there is alternatively the option to pay the lease annually in increasing, however, this leaves open the possibility of the annual lease prices rising during the course of the 50-year lease.

The remainder of the capital, approximately USD 1.3 million, will be invested in developing the Eco-park facilities.

The buildout of the park facilities is anticipated to take 12 months from the date of receiving firm commitments for the funding. Only part of which is to be paid upfront and the rest is to be called on as required by construction etc.