To date, the city has granted licences to 16 tourism projects worth a combined VND10.8tril (US$676mil); Of these, eight are foreign-invested with a total capital of $473mil, while the remaining are domestic-invested to the tune of VND3.24tril ($202mil).

The city has also given in-principle approval to 26 tourism projects with a combined budget of VND15.58tril ($974mil), including a $150mil urban area, $80mil high-grade tourism resort and $30mil shopping and entertainment complex.

Only five of these projects are operational, however, while the pace of construction on 11 others remained sluggish, Truong acknowledged.

To address the problem, the tourism department recently asked the municipal People's Committee to the licences of three slow-moving projects worth a combined VND800bil ($50mil), including the Red Star Hotel and Resort developed by the Hanoi-based Sao Do Joint Stock, Co and Khang Hung Hotel financed by the Khang Hung Joint Stock Co.

The department has also proposed city authorities offer suitable investment incentives to several major investors who have the financial capacity to carry out the projects.