FDI wave propels central Vietnam province Gia Lai’s pivot to luxury tourism, clean energy  

FDI inflows into Vietnam’s central province of Gia Lai are not only rising in volume but also shifting in quality, increasingly concentrated in large-scale, high-tech and sustainable projects, thereby expanding the locality’s growth space and elevating its position on the regional investment map.

Shaping “ultra-luxury tourism haven”

After surveying 3,200 kilometers of Vietnam’s coastline, Arque Degi JSC concluded that the Cat Tien–De Gi area in Gia Lai possesses all the necessary conditions to develop ultra-luxury tourism catering to the global elite.

Arque Degi JSC represents a consortium that includes Vietnam’s Lac Viet Group, Switzerland's Finance Suisse, and European luxury super-yacht maker Palmer Johnson.

This is seen as a major catalyst, opening the door for the province to position itself as a destination for European and Middle Eastern billionaires, political leaders, and royalty, as well as leading global celebrities.

As of November 2025, the provincial People’s Committee had granted investment licenses for three sub-zones of the floating urban-tourism service complex in the southern, central and northern sections of De Gi Lagoon (in De Gi and An Luong communes), with total registered capital of more than VND8.55 trillion ($327.02 million) and a scale of over 572 hectares.

The move is seen as the starting point for a broader 5,200-hectare mega project aimed at developing a world-class luxury resort complex, including floating hotels and villas on the lagoon, hillside mansions, superyacht berths, golf courses and a so-called “billionaires’ island.”

The project is positioned as the world’s first of its kind, described as “one of a kind,” and representing a turning point in the global luxury lifestyle, said Tong Duc Hieu, chairman of Lac Viet Group and director of Arque Degi JSC.

What sets the project apart is not only its scale but also the involvement of two internationally renowned heavyweights: Palmer Johnson Inc., the Monaco-based superyacht brand with more than a century of heritage, known for crafting vessels for billionaires, political leaders and global celebrities; and Finance Suisse, a multi-client family office.

Alongside ultra-luxury tourism, Gia Lai is also making its mark with the culture, sports, entertainment and commercial services complex 1 project, spanning more than 308 hectares with total investment exceeding VND2.6 trillion ($99.4 million), developed by Blooming Sky Co., Ltd.

Notably, the company’s co-chairmen include Lee Soo-man, founder of SM Entertainment - a pioneer of the Korean Wave across Asia and globally - and Jang Chin Hyuk.

Lee said he expects the project to develop into a comprehensive entertainment and festival ecosystem, positioning Gia Lai as a “World Festival Destination.” The vision is to host international music festivals aligned with global trends, alongside mega concerts and major sporting events capable of drawing tens of thousands of attendees.

The project would help boost local tourism, hospitality, food and service sectors. It is also expected to attract service providers, foster the establishment of hundreds of new businesses, and generate thousands of jobs, he said.

Tran Viet Anh, chairman of the Gia Lai Tourism Association, said the above-said projects signal a decisive shift in tourism development thinking.

Previously known mainly for its beaches, martial arts and indigenous culture, Gia Lai is now entering a new phase - shaping itself into a “mega-destination,” where high-end resort tourism converges with arts, sports and entertainment, he elaborated.

“This represents a comprehensive upgrade of the tourism product, comparable to models that Thailand, South Korea and the UAE have leveraged to accelerate their breakthroughs,” Anh said.

He forecast a breakout phase for Gia Lai’s tourism sector over the next three to five years, marked by rising international arrivals, particularly from South Korea, alongside a structural shift toward a higher proportion of long-stay visitors and high-spending travelers.

New destination for FDI flows

Beyond tourism, Gia Lai is steadily emerging as a new magnet for FDI in Vietnam’s south central region.

Backed by abundant land reserves, rich agricultural resources and renewable energy potential, alongside efforts to improve the investment climate, the province is gradually carving out a place on the FDI attraction map.

In 2025 alone, it attracted 16 FDI projects with total registered capital of more than VND35.68 trillion ($1.36 billion).

Investment flows came from countries and territories across Asia and Europe, spanning agriculture, forestry and fisheries, industry, as well as trade, services and tourism.

Among the standouts is a polyester fabric recycling complex by Sweden’s Syre Impact AB, with capital of VND25 trillion ($955.75 million).

Other major commitments include the Van Canh-Binh Dinh wind power plant by Singapore-headquartered Nexif Ratch Energy SE Asia Co., Ltd., with capital exceeding VND5.7 trillion (around $217.9 million), and a renewable energy workforce training and development center by the consortium of Germany’s GEO Group and Vietnam O-Door Co., Ltd., valued at VND2.3 trillion ($87.93 million).

Dissescou Cyril Thibaut Ioan, CEO of Nexif Ratch Energy SE Asia, said the 143-megawatt Van Canh wind power plant in Gia Lai forms part of the group’s broader investment strategy.

The company is mobilizing all necessary resources, from manpower to capital, to ensure the project is implemented effectively in the coming period, he added.

Franz Josef Claes, chairman of the GEO Group, said the training center in Gia Lai is designed not only to meet workforce demand for the province and Vietnam as a whole, but also to evolve into a renewable energy talent hub serving Southeast Asia.

Last July, Binh Dinh and Gia Lai were merged to form the new Gia Lai province which borders Dak Lak, Quang Ngai, Cambodia, and the East Sea.