US private equity firm Warburg Pincus and its partner VinaCapital have invested an additional US$1 billion in a tourism and recreation complex in southern Vietnam.

The new investment is for a 35-hectare development at The Grand Ho Tram – a group of integrated resorts, a coastal golf course, a Las Vegas-style casino, and residential developments in Ba Ria - Vung Tau province.

The new phase will feature five-star hotels, resort villas, entertainment amenities, another casino, and an international convention and exhibition centre, also along the seashore.

The Grand Ho Tram includes international hotel brands InterContinental Grand Ho Tram, Holiday Inn Resort Ho Tram Beach, and Ixora Ho Tram by Fusion.

Its owner, Lodgis Hospitality Holdings – a joint venture between Warburg Pincus and investment group VinaCapital – says the latest development will increase the project’s total investment to US$4 billion and expand its capacity to 9,000 rooms, positioning it as one of Southeast Asia’s leading integrated resort destinations. The latest phase is designed to accommodate over 6,000 rooms and serve up to 18,000 guests daily.

Airport expressway

Warburg Pincus sees much potential in Ho Tram, just about 50 kilometres from Long Thanh International Airport. Construction is set for completion by the end of December.

The 5,000-hectare airport will be the country’s largest and help alleviate overload at Tan Son Nhat International Airport, located in the heart of Ho Chi Minh City. It is within an hour’s drive from the city.

The US investor has proposed that a 41-kilometre expressway be built under a public-private partnership ( PPP ) contract to connect the international airport with Ho Tram. The project is estimated to cost approximately 17.3 trillion dong ( US$677 million ).

In a meeting in Hanoi on April 18, Vietnamese Prime Minister Pham Minh Chinh urged Warburg Pincus CEO Jeffrey Perlman to invest “further and faster” in Vietnam, especially in the proposed highway. The plan is to break ground on the new route on September 2, Vietnam’s National Day.

The project is expected to significantly boost tourism in Ho Tram and the surrounding region. By September, Ba Ria - Vung Tau and Binh Duong provinces will have been integrated into Ho Chi Minh City’s metropolitan area, forming a region that will account for a quarter of Vietnam’s gross domestic product.

By 2030, tourism is projected to contribute 15-17% of the country’s GDP, establishing Vietnam as a more popular destination in Asia and beyond.