VietNamNet Bridge – The foreign investors in the integrated
resort (IR) industry now have to reconsider their plan to invest in Vietnam,
since the Ministry of Finance (MOF) still has decided to close casino’s door to
Vietnamese people.
Casino put under strict control
As predicted, the draft decree on
the casino business management to be submitted to the government comprises of
the regulations aiming to impose a strict control over the casinos’ operation.
In principle, casinos are a
conditional type of business, which means that Vietnam will be very stern when
considering licensing casinos. In order to develop a casino in Vietnam,
investors must have the minimum investment capital of four billion dollars,
while they must have at least 10-year experiences in organizing and managing
IRs.
Especially, only foreigners and
overseas Vietnamese (the Vietnamese people with foreign citizenship) would be
admitted to casinos. The decision would be the final decision to the efforts by
foreign giants, who have been lobbying for the nod of the government to allow
Vietnamese people gambling.
The draft decree needs to be
consulted with at least five relevant ministries, including MOF, the Ministries
of Planning and Investment, Public Security, Culture, Sports and Tourism, and
Construction.
The area for casinos must not be
bigger than three percent of the total area of the IRs, while the license for
casino would be granted only after investors finish the construction of other
items in the IRs.
Investors will have to reconsider IR projects in Vietnam
The requirement on the huge
investment capital of four billion dollars will not create any difficulties for
foreign investors, who are believed to be financially capable enough to arrange
the investment capital double the stipulated minimum capital. The requirement
on the investors’ experience in the field also would not be an obstacle for
them.
However, foreign investors would
have to reconsider their plan to develop IRs in Vietnam, because with the
strict regulations, investors cannot be sure of making profit. Vietnam wants
the casinos to be located on the places separately far away from other business
areas, such as convention center, trade fair, hotel or restaurant.
The casinos in Vietnam must not
cover more than three percent of the total area of IRs, while the average
percentage in the world is four percent. Especially, Vietnamese – the targeted
clients – will not be able to go to casinos.
Therefore, analysts believe that
Las Vegas Sands, the giant who has revealed its plan to expand business in Asia,
especially in Taiwan, Japan, South Korea and Vietnam, would have to reconsider
the investment plan in Vietnam.
Some months ago, the billionaire
repeatedly mentioned Vietnam as the group’s priority destination in Asia.
However, he has cautiously put Vietnam at the bottom of the list of the
destinations under his consideration.
The investor said he won’t
develop hotels, shopping malls and other amusement items first and will only
seek the permission to develop casinos later.
Casinos are always a very important
component of an IR, because it can bring profits, while other items in the IR
would bring loss. The investor said an IR would require huge sum of capital;
therefore, casinos should be seen as an indispensable item for the investor to
make profits.
Some experts think that Vietnam
would be better to say “no” to casinos, rather than “keeping the doors open,
but imposing strict requirements for admission.”
Manh Ha
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