Phú Quốc: Artificial Islands Between Tourism Ambition and a Delicate Balance

Phú Quốc is accelerating its transformation. Among the projects currently under consideration: the development of artificial islands designed to host new tourism, leisure, and service infrastructure.

This initiative is part of a broader strategy to position the island as a major international destination, particularly in the lead-up to APEC 2027.

Addressing the Limits of Current Development

With tourism growing rapidly — nearly 8 million visitors in 2025, including around 1.8 million international arrivals, and targets of 8 to 10 million annual visitors by 2025–2030 — pressure on existing coastal areas is becoming increasingly visible.

In this context, artificial islands are presented as a way to:

• absorb sustained tourism growth

• develop fully planned, integrated spaces

• meet international hospitality standards

This model reflects a broader regional trend, where land scarcity is becoming a structural constraint.

A Clear Shift Toward Premium Positioning

Phú Quốc is no longer aiming solely for volume growth, but rather to increase value per visitor.

The island has already attracted significant investment:

• over 300 registered tourism and real estate projects

• representing approximately USD 16 billion in cumulative investment

Artificial islands could accommodate:

• high-end resorts

• MICE infrastructure (Meetings, Incentives, Conferences and Exhibitions — i.e. business events such as corporate meetings, conferences, and trade shows)

• integrated retail and entertainment zones

With the international airport expected to exceed 10 million passengers annually in the near term, the island is clearly preparing to scale up.

A Strategy That Raises Questions

While this approach responds to real challenges, it also brings several points of attention.

First, development coherence.With more than 20 major infrastructure projects planned or underway, careful coordination will be essential to avoid imbalances between urban expansion, mobility, and service capacity.

Second, positioning. By moving closer to destinations such as Phuket (over 11 million international visitors in 2019) or Bali (around 6.3 million international visitors in 2019), Phú Quốc is entering direct competition with already mature markets.

Finally, environmental considerations remain in the background. Land reclamation and offshore construction can impact sensitive marine ecosystems — particularly coral reefs — in an island where more than 50% of the territory is classified as national park or protected areas.

A Strategic Turning Point

Following its upgraded administrative status, Phú Quốc now benefits from a more flexible framework for investment and development.

The island’s ambition is clear:

• attract higher-value international visitors

• extend average length of stay

• position itself as a regional tourism hub

In this context, artificial islands represent a strategic lever:creating new space without being constrained by existing land availability.

Conclusion

The project reflects a clear ambition: to position Phú Quốc among the region’s leading destinations.

However, the figures also highlight the challenge: scaling from a few million visitors to potentially 10 million annually, while maintaining territorial balance and environmental integrity.