VietNamNet Bridge – The Government should grant an exclusive
license for casino operation to a big investor, or issue licenses to a limited
number of foreign investors in order to successfully attract foreign direct
investment (FDI) into this sensitive field.
This is the view of Cushman &
Wakefield Vietnam, a leading real estate consultant, as feedback on the draft
decree on casino management that the Ministry of Finance has recently submitted
to the Government.
Mark D. Capasso, executive
director and national practice leader of the Hospitality & Gaming Practice
Group under Cushman & Wakefield Vietnam, said the chance for Vietnam to
find investors would be higher if the number of licenses was limited, or the
Government decided to issue an exclusive license to a big investor, rather than
granting investment licenses en masse.
According to the draft decree,
foreign investors must register a minimum capital of US$4 billion if wanting to
open casinos in Vietnam.
Capasso commented: “Given the
minimum capital required, there would be few chances for foreign investors if
they did not develop recreation complexes.”
He said Vietnam should learn from
the models of Singapore and Macau, where casinos are set up at recreation
complexes according to the demand of the markets instead of the requirements of
the government for investors.
Macau has chosen a number of
investors to develop casinos and given a master license to Las Vegas Sands
while in Singapore, an exclusive license has been issued to Las Vegas Sands.
Both systems are operating successfully.
As per the draft decree, those wanting
to get licenses for casino operation have to develop recreation complexes
consisting of casinos. Local investors are required to have at least ten years’
experience of casino operation under Vietnam’s laws while foreign investors
must observe foreign laws.
This provision will limit the
number of foreign investors, but it will not be difficult to seek investors in
the domestic market.
Regarding the provision that
Vietnamese are not allowed to enter casinos, but foreigners or overseas
Vietnamese with valid passports or laissez-passers are allowed, Capasso said
this would affect earnings of investors.
However, investors do not find it
strange. He said: “Investors should understand that in a certain institution,
social control toward local residents is a must. Generally, investors have got
used to such social controls.”
He added the Government should
have measures to ensure sufficient demand for casino service even when social
control is in force.
Leon Cheneval, branch manager of
Cushman & Wakefield in Hanoi, said Ho Tram Strip of MGN was currently the
only large-scale project that had earn the license for casino service,
including 180 gaming tables and 2,000 slot machines. Other foreign investors
like Las Vegas Sands and Donaco Singapore are also looking to invest in casino
service in Vietnam.
This signals that giants are
ready to be present, Cheneval stated.
Lloyd Nathan, general director of
the Ho Tram Strip project, recently told the Daily that 40% of the revenue of
Naga Corp., operator of a casino chain in Cambodia, came from Vietnamese.
Apart from Ho Tram in Ba Ria-Vung
Tau, there are five other casino operators nationwide, namely Genting
VinaCapital Co. in Hoi An, Silver Shores Hoang Dat Co. in Danang, Hai Ninh Loi
Lai Co. in Quang Ninh, Royal International Co. and Lao Cai International Hotel,
according to the finance ministry.
Recently, some foreign investors
have expressed interest in opening casinos in Van Don, Quang Ninh and Phong
Nha, Quang Binh.
Source: SGT
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