German bank to invest $20 mln in Mekong Delta resort

German bank DEG and Vietnam's Novaland inked a partnership deal to invest in the Azerai Can Tho Resort project on September 26, 2019.

The funds will be used to develop the 20-hectare Azerai Can Tho Resort on Con Au Island in the southern city of Can Tho. An agreement to this effect was signed Thursday by both parties.

The resort currently has 30 two-room bungalows and 45 luxury timeshare villas, and is part of NovaWorld Mekong, a 1,000 hectare resort and leisure complex under construction.

Experts from DEG will provide Novaland with advice on human resources training, sustainable hotel management standards, travel standards and environmental issues related to the project, as well as how to best utilize Novaland’s existing resources to develop other leisure complexes nationwide.

Azerai is built on a verdant islet on the Hau River, a tributary of the Mekong River, in Can Tho City.

In the Mekong Delta, Novaland and the Military Commercial Joint Stock Bank have jointly contributed funds for the Boston Consulting Group (BCG), a leading global consultancy, to formulate and guide implementation of the government’s Tourism Development Strategy for 13 provinces in the Mekong Delta, helping them adapt better to climate change.

According to BCG, by 2030 the Mekong Delta will be "Asia's No.1 river tourism destination", create 300,000 new jobs, and attract 19 million tourists, 30 percent of them international visitors.

"We look forward to strengthening our cooperation with professional consultants, helping the development of NovaWorld Mekong in a sustainable way, contributing to both local tourism development and creating new jobs, helping to keep workers from leaving their fields and bringing high-level personnel to the Mekong Delta," said Novaland CEO Bui Xuan Huy.

DEG, formally known as Deutsche Investitions - Und Entwicklungsgesellscheft Mbh, is a reconstruction bank based in Germany that says it specializes in funding and providing consultancy for business initiatives that improve social living conditions.

DEG's current portfolio comprises 700 or so investments in 82 countries, according to its website.