The country's largest and most modern hotel will be constructed on the beach of Bai Chay in Ha Long City.

According to Ha Quang Long, deputy general director of Hoang Gia International Joint Stock Co, the hotel's developer, the construction aims to tackle an acute shortage of first-class hotels and guest houses in the resort area.

The new five-star hotel, which will have 707 rooms, will be built with a total investment capital of US$51.4 million. Construction is expected to begin earlier next year, with the hotel to open in 2008.

The resort complex aims to become the cultural and tourist centre in Ha Long City. It will also have an US$8 million, 1,200-seat theatre, and a 14,000 sq.m trade centre.

To finance the project, Hoang Gia International Joint Stock Co is expected to offer about 5.5 million shares next month at a face value of VND150,000 (US$9.42) per share.