The Billion Dollar Twins: Grand Pioneers Super-Yachts and the Transport Titan’s Tourism Turning Point

In November 2023, the first superyacht of the Viet Thuan Group set sail in Ha Long Bay under the name Essence Grand Ha Long Bay Cruise. Measuring 109.99m in length and 18.68m in width, this vessel accommodates up to 320 passengers and is the largest of its kind in Vietnam with a football field-like dimension.

Unveiled as a pair of twin superyachts, the second vessel commenced its maiden voyage in May 2024, with both yachts subsequently renamed Grand Pioneers.

Embarking on a three-day, two-night cruise named “Ha Long Heritage Journey,” passengers are treated to a unique perspective of the bay’s iconic landmarks such as Dog Stone Island, Fighting Cock Island, and Incense Burner Island, to name a few.

Venturing beyond the typical tourist trail, Grand Pioneers offers an exclusive experience by taking passengers to rarely visited locations such as the Stacked Stone Park, a 320-million-year-old geological wonder, as well as Wooden Head Island, Cactus Island, the ancient fishing village of Vung Viêng, and the breathtaking Thien Canh Son Cave, all of which lie outside the bay’s typical tourist routes.

Despite Ha Long Bay’s vast expanse of over 1,500 square kilometers, most tours, especially day trips, only cover the core area of approximately 400 square kilometers. Grand Pioneers, however, ventures further and longer with its three-day, two-night itinerary, covering four times the distance of a typical bay cruise. The furthest point of this journey lies within the Bai Tu Long National Park, an untouched area rarely explored by conventional tours.

This extended itinerary, dubbed the “exclusive journey,” is made possible by the VR-SB-class vessel, which adheres to stringent safety and environmental standards.

Grand Pioneers offers an unparalleled opportunity to explore Ha Long Bay in its entirety. With its unique docking locations away from the hustle and bustle of other boats, passengers can immerse themselves in nature, capturing the most breathtaking sunrises and sunsets, as affirmed by Mr. Luong The Tuyen, Vice President of Viet Thuan Group.

While a typical luxury yacht operating in Ha Long Bay costs around VND 100 billion, a Grand Pioneers superyacht is priced at no less than VND 500 billion. The pair of twin yachts represent an investment of over VND 1,000 billion by Viet Thuan Group.

Additionally, with the province of Quang Ninh’s commitment to sustainable and green tourism development, there is a policy in place to maintain the current number of vessels in the bay. As a result, the construction of these twin yachts involved the exchange of multiple old overnight boat rooms in the bay. The aforementioned investment of VND 1,000 billion excludes the substantial cost of acquiring these room exchange rights.

The superyacht’s premium price tag is justified by its exceptional features and amenities.

According to Mr. Luong The Tuyen, Grand Pioneers prioritizes the ultimate passenger experience, featuring a design that gradually narrows towards the upper decks, ensuring compliance with aerodynamics and hydrodynamics. This innovative design provides passengers with unobstructed panoramic views of the bay’s natural splendor, regardless of their cabin location. Consequently, the yacht accommodates 53–55 cabins, a slightly lower number compared to conventional designs that focus solely on maximizing revenue.

Aligned with Quang Ninh’s vision for green tourism development, Grand Pioneers is positioned as an eco-friendly vessel. It is the only yacht in Ha Long Bay to utilize premium anti-fouling paint, employing a non-toxic hydrolysis method that does not harm the environment. The yacht also incorporates eco-friendly materials such as bamboo charcoal, insulation foam, and Sika concrete in its construction.

Notably, the air conditioning system uses water as a refrigerant and seawater as a coolant, ensuring safety and eliminating the risks associated with gas leaks. Furthermore, Grand Pioneers is the first yacht in the bay to feature an advanced wastewater treatment system that meets the A standard for direct discharge into surface water.

However, with such significant investments, Viet Thuan Group faces challenges in their business model.

Each cabin, boasting a spacious balcony and large windows for optimal views, is priced at VND 22 million for the three-day, two-night tour. The most luxurious accommodation, the Presidential Suite, featuring a jacuzzi, private dining room, and dedicated butler service, is available for VND 164 million.

Catering to high-end travelers, particularly those from European and American markets, Mr. Tuyen shared that since its launch on July 1, the “Ha Long Heritage Journey” tour has achieved approximately 50% occupancy.

One challenge in operating this new tour is that Quang Ninh province does not currently permit overnight cruises in Bai Tu Long Bay. As a result, after exploring Bai Tu Long Bay during the day, the yacht must return to the designated anchorage area in Ha Long Bay for the evening, increasing the travel distance and tour costs.

Additionally, while the natural beauty and scenery are the main attractions of the tour, unfavorable weather conditions can be a limitation. On rainy days, passengers may miss out on the stunning sunsets and sunrises, but Grand Pioneers offers a range of indoor amenities to compensate, including a shopping area, movie theater, family entertainment room, 3D golf simulator, spa, and sauna.

The leadership of Viet Thuan Group acknowledges the challenges of entering the tourism industry and adapting to the B2C model, a significant shift from their familiar B2B operations.

In the field of transportation, Viet Thuan Group has firmly established itself as Vietnam’s leading bulk cargo shipping company, boasting a fleet of 100 vessels with a total capacity of 1 million tons and a crew of 1,500 seafarers. The group is the primary transporter of coal for thermal power plants nationwide.

In 2019, Viet Thuan Group ventured into the tourism industry by establishing Viet Thuan Tourism and Hotel Company Limited and partnering with EHG to invest in and operate two luxury yachts initially named La Siesta.

The group’s journey into the tourism industry faced challenges due to the COVID-19 pandemic, and the need to change the yachts’ names three times. The significant investment figures also reflect the financial hurdles the group has had to overcome to maintain their financial metrics.

According to disclosed information, Viet Thuan Group generates revenues in the thousands of billions of VND annually. In 2022, the group’s consolidated revenue reached nearly VND 9,000 billion, with a post-tax profit of VND 165 billion. In the first half of 2023, the company achieved a revenue of over VND 3,500 billion and a profit of VND 35 billion. The transportation segment is currently subsidizing the group’s fledgling tourism business.

However, according to the group’s leadership, the Chairman of Viet Thuan Group is deeply passionate about Ha Long Bay and is determined to showcase its untouched beauty to the world. His unwavering belief, reflected in his statement, “Supporting our people is never a loss. Only waste and destruction are losses,” has inspired the team to persevere.

The Grand Pioneers superyachts are a testament to the capabilities of Vietnam’s shipbuilding industry, as they were constructed by the Ha Long Shipbuilding Company Limited, showcasing local talent and expertise. The operation and service crew are also entirely Vietnamese, adding a unique touch of local hospitality to the five-star international experience.

Mr. Luong The Tuyen emphasizes that the “Ha Long Heritage Journey” is just the beginning, paving the way for new products, experiences, and a refreshed approach to tourism in Ha Long Bay and Vietnam’s coastal destinations. It sets a new trend for luxury cruises, attracting high-end travelers and reducing pressure on the bay’s core area.

Looking ahead, the Chairman of Viet Thuan Group envisions a superyacht capable of accommodating 1,000 passengers, embarking on a “Heritage Journey” across Vietnam and beyond.