Unlimited electronic gaming facilities, in accordance with the latest
Ministry of Finance’s decree draft, could open the door for more
foreign-invested projects in Vietnam.
Under the decree draft regulating
conditions for running electronic gaming services in Vietnam, an investor can
gain a licence for running an electronic gaming facility as long as it
satisfies some of conditions such as running a hotel or resort with at least
five-star rate and the gaming facility is separated from other facilities of
the hotel. The hotel or resort must be the one regularly receiving a “big
amount” of foreign guests. However, there is no explanation on how the “big
amount” is.
Otherwise, the investor must meet
other criteria including business plan, security measure and “financial
ability” instead of at least $4 billion under the existing Government
Announcement 97/TB-VPCP issued in 2007.
More importantly, the decree
draft which is now under the government’s consideration, does not limit the
amount of electronic gaming facilities nationwide like Singapore, Malaysia and
the UK.
“The draft is making it easy for
casino business because all of these above conditions are not difficult to
reach,” said Nguyen Mai, chairman of the Vietnam Association of Foreign
Invested Enterprises.
Since 1992 when electronic gaming
services was first allowed in Vietnam, 50 electronic gaming facilities have
been licenced nationwide with $4.2 billion Ho Tram Strip project in southern Ba
Ria-Vung Tau province being the largest. The project is expected to open in
February 2013.
Many foreign investors are trying
to encourage the Vietnamese government to allow integrated
casinos-and-convention resorts in the country.
Malaysia’s Genting Group, for
instance, proposed to build an integrated casino and resort complex in northern
Quang Ninh province’s Van Don Economic Zone. Meanwhile, the Las Vegas Sands
Corp is proposing to build integrated casino and resort complexes in Ho Chi
Minh City and Hanoi.
The Ministry of Finance, in its
document sent to the government explaining the need of the new decree governing
gaming services, said the development of electronic gaming services could spur
the nation’s tourism industry, create jobs and contribute significantly to the
state budget.
From 1992 till now, the total
revenue from electronic gaming business is estimated to reach about $72 million
per year and contribute to the state budget at the average level of $11.5
million per year, according to the ministry.
Even though Vietnamese nationals
will remain banned from electronic gaming services, Mai said to allow
integrated casinos and resorts nationwide could cause social instability.
Mai suggested Vietnam develop a
centre like Macau or Las Vegas that would be convenient for the government to
manage, and that Phu Quoc island would be an ideal place.
Nguyen Trang | vir.com.vn
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment