Recently, many Vietnamese localities, including Da Nang, have seen a significant increase in mergers and acquisitions (M&As) transactions of foreign direct investment (FDI) projects from abroad.  This has caused numerous difficulties for the management work in these localities.

The Hyatt Regency Danang Resort

Dozens of FDI projects in Da Nang have changed owners.  In particular, Indochina Land sold its 5-star Hyatt Regency Danang Resort and Spa to Hong Kong-based Gaw Capital Partners, its 18-hole international-standard golf course Montgomerie Links, plus 66 luxury villas, to the TBC Corporation, and its 0.4ha Indochina Riverside Towers complex to Kajima, a major Japanese general contractor.

The ownership of the 5-star, 200-bedroom One Opera Danang Hotel has changed 3 times, transferring from the hotel’s developer - Viet Nam’s real estate group Hoang Anh Gia Lai - to a foreign investor, and then to the Hong Kong-based Success Dragon Group. 

VinaCapital Da Nang has transferred the ownership of its 18-hole Danang Golf Club to Ha Noi’s BRG Group, along with 16 associated villas.  The Dong A Real Estate Company’s Golden Square project has been sold to the Alphanam Group based in Ha Noi. 

Other examples are the purchases of a 17.6 ha marina and urban complex project on the eastern side of the Han River and a trade centre on 2 September Street by the Quoc Cuong Gia Lai Group from Gia Lai Province.

Mr Tran Van Son, Director of the Da Nang Department of Planning and Investment, said “Over recent years, many overseas-based parent companies established subsidiaries in the city to implement their projects, especially in the real estate and tourism sectors.  They have then sold their projects to other developers.  However, the transfer of ownership is being implemented in the parent companies overseas without necessarily changing the legal entities of their subsidiaries in the city.  This is causing many difficulties for the municipal authorities in ensuring the effective management of such projects.  In addition, the city’s tax department is finding it very difficult to collect taxes from these projects in accordance with the city’s regulations”.