A new decree draft on casinos is expected to open the door for the once
discouraged gambling industry in Vietnam.
The Ministry of Finance (MoF) two
weeks ago released a decree draft on investors developing casinos in Vietnam as
long an integrated resort was built at total investment capital of at least $4
billion. Furthermore, the investor must have 10 years casino industry
experience.
The MoF is now seeking comments
from experts and businesses for this decree before submitting it to the prime
minister for approval. However, the draft is a signal indicating that the
gambling industry is likely to be developed legally in Vietnam.
“We are very pleased that the
government of Vietnam has created a draft regulatory framework to ensure the
highest standards, and to enable world class operators to bring all the
benefits of increased tourism, job creation, career development and tax revenue
to Vietnam.
We are looking forward to its
expeditious implementation,” said Lloyd Nathan, chief executive officer of
Canada-based Asian Coast Development Limited (ACDL), the developer of $4.2
billion integrated resort Ho Tram Strip in Ba Ria-Vung Tau province.
ACDL is now constructing the
first resort in Ho Tram Strip, MGM Grand Ho Tram, which is expected to be
launched in February, 2013. It includes two hotels, a 13,600 square metre
gaming entertainment area with 90 live table games and 500 electronic gaming
machines, a world-class conference facilities, a wide variety of recreational
activities and pool and beach facilities.
In addition, ACDL also sold a 26
per cent of stake to Pinnacle Entertainment, a Las Vegas-based integrated
resort developer and manager. Accordingly, Pinnacle Entertainment and ACDL will
develop the second resort in this project site.
“When it comes to world class operators
such as MGM Resorts and Pinnacle Entertainment, they are licenced globally, by
many and varied jurisdictions, all of which strive to ensure the highest
standards for this industry. As such, MGM and Pinnacle need a clear and
appropriate regulatory structure in any new jurisdiction where they might
operate,” said Nathan.
Since 1992 when gambling
limitedly allowed for the first time in the country, Vietnam has only one
recognised casino in Do Son, Haiphong. Meanwhile, the country also licensed 50
gambling facilities nationwide, but just recognised them under the name of
“prize-wining electronic gaming” facilities.
According to the MoF, if this
decree were approved, it would be the first legal framework regulating casino
business in Vietnam. It expects the gambling industry could spur the tourism
industry, create jobs and contribute significantly to the state budget.
From 1992 till now, the total
revenue from prize-winning electronic games business is estimated to reach
about $72 million per year and created around 40-1,000 jobs for each gaming
spot and contributed to the budget at the average level of $11.5 million per
year, according to the ministry.
While Asia is drawing the
attention of casino companies, Vietnam in particular is considered as among the
most attractive place. Gambling operators are trying to encourage the
Vietnamese authorities to allow integrated gambling-and-convention resorts in
the country. The Las Vegas Sands Corporation is proposing to build integrated
resorts with casinos in Ho Chi Minh City and Hanoi.
“Our interest in Vietnam remains
very strong. We have spent a number of years working with people in Vietnam to
help them understand what an integrated resort is about, what we as investors
will bring to Vietnam and to the Vietnamese people,” said George Tanasijevich,
managing director of global development for Las Vegas Sands Corporation.
Nhu Ngoc | 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. Since we are currently changing the platform of www.yourvietnamexpert.com, you may contact us at: sbc.pte@gmail.com, provisionally. Many thanks.
No comments:
Post a Comment