The Trump Organization's ambitious $1.5 billion luxury resort project in northern Vietnam has hit a roadblock due to land compensation disputes, leading to significant delays. The resort, located in Hung Yen Province near Hanoi, has seen little progress since its groundbreaking ceremony in May, as local farmers protest the compensation offered for their land, claiming it is insufficient.
Farmers argue that the proposed compensation of approximately $13.50 per square meter is inadequate, equating to roughly a year's income. Despite local authorities asserting that the compensation aligns with government regulations, they acknowledge that without the farmers' agreement, the project's goals may remain unattainable.
The resort, which aims to feature three golf courses, a 5-star hotel, and luxury residences over 10 square kilometers, was initially set to complete its first phase by 2027. However, the ongoing disputes threaten to derail this timeline.
Compounding the situation are questions regarding the Trump Organization's and its local partner Kinh Bac City Development Holding Corporation's (KBC) capabilities to see the project through. The Wall Street Journal reports a pattern of unsuccessful overseas ventures by the Trump Organization, which often focuses on brand licensing rather than direct project involvement. Previous international projects, including those in Brazil and Azerbaijan, were abandoned due to partner issues and corruption scandals.
KBC, the project’s local partner, also lacks a strong history in high-end real estate. A 2009 hotel project in Hanoi remains unconstructed, and a purported 2022 partnership with Hyatt for a $5 billion hotel project was denied by the hotel chain, casting further doubt on KBC's credentials.
Despite these setbacks, the Trump Organization has already received significant brand licensing fees from KBC, raising concerns that the actual development of the Vietnam resort might be of secondary importance to the organization. As the situation unfolds, the future of the resort remains uncertain, hinging on the resolution of land compensation disputes and the stakeholders' ability to navigate past challenges.
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