The $4-billion casino named Hoiana will include many stores, restaurants, golf courses, and water parks. It is currently under construction along a 3-kilometre stretch of Quang Nam’s seacoast on a 1,000 hectare site.
Accordingly, Hoiana will be the first casino in Vietnam with involvement of Suncity Group. The Macau corporation owns one-third of the project’s stakes. Domestic VinaCapital Group and Hong Kong-based VMS also hold similar shares in the project.
The project’s first phase is expected to be launched in 2019 with 140 card-tables and one golf course. The second phase, including water parks, a second golf course, and four holiday resorts, will be launched in 2023.
Despite the huge revenue from casino business in Macau ($17 billion per annum), the group hopes to expand its business to nearby countries due to strict rules over the gambling business and the shortage of space for expansion in Macau.
In 2017, Royal International Corporation (RIC) announced losses of VND127 billion ($5.6 million), mainly due to losses from its casino business in Halong Bay of the northern province of Quang Ninh.
A similar situation can also be observed at coastal casinos such as Do Son Casino owned by Haiphong International Tourist Joint Venture Company, which has been in losses for many years now. In 2007-2012, Casino Do Son reported an average loss of VND22 billion ($969,172) per year.
According to Australia-based Donaco International Ltd.’s annual report, in 2016, the company’s Aristo International hotel in the northern province of Lao Cai lured in 148,107 players, up 63 per cent on-year. However, the total revenue of the casino business only reached $23 million, with profit being less than one tenth of the revenue.