Investors rush to apply for multi-billion dollar casino projects
At least four foreign investors have drawn up casino and betting projects capitalized at billions of dollars in Vietnam.
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The US$4 billion Nam Hoi An integrated resort project wad restarted by VinaCapital after it found a new partner for the joint venture. The new investor is Chow Tai Fook Enterprise from Hong Kong.
The project kicked off in 2007 and received an investment certificate in late 2010, but it was delayed for many years as the initial partner – Genting Berhard Malaysia -- left in September 2012.
The other huge project is Ho Tram Strip, a complex of five integrated resorts covering an area of 164 hectares along the Ba Ria – Vung Tau seashore. The project has registered capital of US$4.2 billion of which US$1 billion has been disbursed.
Meanwhile, Singaporean Banyan Tree Holdings Limited is moving ahead with Languna Lang Co, capitalized at US$1 billion in Hue City. The investor is following necessary procedures to obtain a license for a casino.
Bloomberg news and Nikkei Asia Review reported that two leading Vietnamese real estate developers are planning to build two integrated resorts with casinos in Phu Quoc and Van Don in 2017. However, the scale of the projects and the detailed plan remain secret.
Sources said G.O. Max I&D, a South Korean group, is considering investing US$1.5 billion in a horse race complex in the north of Hanoi.
Other projects in the same field, capitalized at less than US$1 billion, are being considered by huge investors including Hong Kong’s Matrix Holdings, the Republic of Korea’s Global Consultant Network and Australia’s Golden Turf Club.
George Tanasijevich from Las Vegas Sands, the world’s leading group in casinos, commented that foreign investors see great opportunities in the Vietnamese market.
He said Las Vegas Sands is eager to develop a project in Vietnam, but this would depend on Vietnam’s policies on casino development in the future, referring to uncertainties and risks in the next three years after Vietnam opens casinos to Vietnamese players on a trial basis.
The recently released government decree stipulates that Vietnamese are allowed to go to casinos, but just for a trial period of three years.
After the trial period, Vietnam will consider continuing to allow Vietnamese to gamble at casinos.
The business performance of existing casinos (open only to foreigners) varies. While the casinos in border areas report good business results, the casinos in coastal areas depend on the number of tourists from China, the Republic of Korea and Japan.
Running the only casino for foreigners in Ha Long City, Hoang Gia JSC repeatedly reported unsatisfactory business results. In 2016, the casino brought VND88 billion in turnover, but this meant a loss of VND36 billion because of the high cost price of VND123 billion.
