PHI Group Inc., a diversified global holding company that is developing its Asia Diamond Exchange project (ADE) in Vietnam, plans to invest up to $5 billion in the country.
The ADE project will consist of rough and lab-grown diamond trading centers in Chu Lai, Quang Nam province on Vietnam’s central coast, and polished diamond centers near Long Thanh International Airport which is under construction in Dong Nai province bordering Ho Chi Minh City, the nation’s southern economic hub.
The huge investment is for the mammoth project and an industrial park and logistics center in Dong Nai’s Long Thanh district, the U.S.-based giant said in a Wednesday announcement from New York to update its shareholders and investors regarding the ADE project's progress.
“We plan to develop a total area of 1,000 hectares adjacent to the Long Thanh International Airport for the ADE project and the industrial park and logistics center with an investment of approximately $5 billion in the first phase.
“We have the commitments of a number of major international investors that have agreed to provide capital for this and other projects we are currently undertaking,” the global group wrote.
The ADE is designed as a modern bourse to be operated in affiliation with the World Federation of Diamond Bourses (WFDB) which is fully compliant with the Kimberley attestation process. A key component for establishing this trade will be the establishment of Diamond Buildings, where all diamond activities will be grouped within free trade zones, close to Chu Lai and Long Thanh airports.
These Diamond Buildings will be established following the quintessence of the Israel Diamond Exchange (IDE), the Bharat Diamond Bourse (BDB), the Antwerp Diamond Exchange and the Dubai Diamond Exchange, PHI Group said. It will provide a secure and closed environment that houses everything a diamond trader needs under one roof.
The ADE will have a trading floor, facility for diamond auctions, diamond-related services, shipping, safe rooms, banks, and support services like restaurants and shops.
PHI added the project would also house all ancillary service providers related to the diamond industry. A dedicated team will be located in the exchanges and committed to assisting members and their guests with networking and trade lounge, boiling and polishing, secure transportation, Kimberley Process Office, insurance and financing partners, gemological services and education.
“We have been working with the provincial leaders of Quang Nam province, Chu Lai Open Economic Zone Authority and Dong Nai province to prepare and complete the required documents for the licensing process in order to construct the Asia Diamond Exchange buildings and other supporting facilities.
“We are also pleased and encouraged to see the recent progress at Long Thanh International Airport and the visit of Prime Minister Pham Minh Chinh at the site on January 29, 2023,” the group updated.
The airport’s first phase will include a runway stretching 4,000 meters and a system of taxiways and aprons, meeting a capacity of 25 million passengers and 1.2 million tons of cargo per year. The total investment of phase one is around $4.5 billion, expected to be completed and put into operation in 2025, PHI Group added.
“We have submitted an application for investment registration to build the rough diamond portion of the ADE in Tan Hiep Industrial Park, Long Thanh district, and have received very supportive responses from the People’s Committee of Dong Nai province - Industrial Parks Management Board,” the global giant said.
The group is currently in the process of closing an investment package of $250 million and has received consent from Vietnamese renewable energy company Tin Thanh Group (TTG) to extend the closing of the acquisition of TTG until this investment package is consummated.
Internationally, PHI Group primarily focuses on Philux Global Funds, a group of Luxembourg bank funds organized as the Reserved Alternative Investment Fund, and developing the ADE project in Vietnam. It engages in mergers and acquisitions and invests in selective industries.