Vietnam’s on the verge of a yachting boom

Yachts are becoming a status symbol for Vietnam’s newly rich. One CEO has just ordered three; two for himself and one for a friend working in the banking sector.

Fingernail care magnate Nguyen Minh Tuan confirmed to VnExpress that he has placed his order with a US manufacturer, and that the three yachts may arrive in Vietnam in October.

“I’ve bought all three for personal use, so I will pay import tax, value added tax and special consumption tax,” Tuan said. Under current regulations, individuals who buy private yachts or airplanes must pay luxury tax of 30 percent, import tax of 10 percent and value added tax of 10 percent.

These are not Tuan’s first yachts. He already has some smaller ones, one of which cost more than 100 million dong. The yachts allow him to mix with nature and enjoy time with friends.

The new boats are significantly more expensive. The biggest of the three, 12.5 metres in length, is valued at nearly $500,000, including tax. That’s the one Tuan is buying for his friend. It has two large staterooms and an entertainment area on the board. The second yacht, 12 metres long, is priced at $300,000 after tax, and will be suitable for meetings. The third yacht, 10 metre in length, will be reserved to take trips on rivers.

Tuan is well known for his success in building up the nailcare brand Kem Nghia. Established as a small HCMC workshop in 1992, his company grossed 260 billion dong ($13.5 million) in 2009. Half of its production is consumed in the domestic market, while the rest is exported, mainly to the US.

Tuan and some other businessmen are trend-setters, and it appears that the yachting lifestyle will be catching on generally in the years ahead. Some months ago, newspapers reported that actress Diem My’s family purchased a $2 million Sunseeker yacht that serves the family’s leisure needs and also its business. In early February 2009, a made-in-Vietnam yacht named “King Yacht” was launched in Nhatrang, where it caters to tourists.

To date, most of the yachts purchased by Vietnamese businessmen are on the modest side, with a length of less than 20 metres.

Marinas are being designed into a lot of upscale riverside housing developments and are also being developed at seaside resorts like Cat Ba, Nhatrang and Tuan Chau. In October, 200 or more boats are expected to participate in the fourth biennial Hong Kong to Nha Trang yacht race.

The chairman of the HCM City Real Estate Association, Le Hoang Chau, calls the incipient yacht boom a “positive investment trend,” because marinas not only help increase the value of real estate products and beautify the city’s landscapes, but also help stimulate waterways tourism.

- VnExpress

Tags: Vietnam yachts