Investment in casinos: an insidious race
Investment in casinos: an insidious race
According to the Government’s portal, Prime Minister Nguyen Tan Dung has given the nod to a recreational complex, including a casino on the resort island of Phu Quoc in Kien Giang Province. This news has sparked an immediate and insidious race among investors.
The Prime Minister has also assigned the Ministry of Planning and Investment to cooperate with Kien Giang Province and relevant agencies to collect comments on the casino project and send proposed policies and incentives to the Government for approval.
In fact, the policy of allowing investment in a casino in Phu Quoc was approved by the Politburo and the Government long ago. Kien Giang may be the first location in the country that was permitted to open a casino in the true sense of the word, rather than an amusement zone with bonus games for foreigners like some other projects.
Besides Kien Giang, recently Van Don in Quang Ninh province was also allowed to build a resort complex with a casino. Van Don and Phu Quoc are the two places that are most suitable for building casinos because the casinos will be located in two special zones that are far from the mainland, so the side effects of casinos would be restricted.
Many investors have visited Van Don to seek investment opportunities, such as Las Vegas Sands (USA), Phoenix Tailoi Macau (Macau), Westar Investment Fund (Australia), ISC (Australia), and Casinos (Austria).
For Phu Quoc, the names mentioned are the Southern Gold Coast JSC (Phu Quoc) - Environmental Energy Solutions Technology Incorporated Company (EEST - Philippines), and a joint venture between the Sea Star Travel JSC and Asia Strategic Consulting & Advisory Service Ltd. Last November, it was said that a Singaporean company wanted to invest in a casino in Phu Quoc.
Many investors have come and left. However, this time, things might be different. According to Dau Tu Newspaper, the government’s approval of the casino investment in Phu Quoc this time was based on a specific project. Details have not been disclosed but it is highly possible that the investor would be a local name.
If this information is correct, it will be a breakthrough in the casino business and investment in Vietnam. Not long ago, Sun Group, a local group, proposed casino services in the Ba Na resort and Son Tra Peninsula in Da Nang, but this was a small-scale project, unlike projects with expected investment of up to $4 billion in Phu Quoc or Van Don.
Of course, this is only initial information. According to the direction of the Prime Minister, the casino project in Phu Quoc Island would be implemented after the government issues a decree on the casino business. Currently, the key point in the draft decree – allowing Vietnamese to enter casinos - is expected to be removed for casino investment and business in Vietnam.
Currently, in addition to the small-d projects of amusement zones with bonus games for foreigners, there are only two large-scale projects, the Ho Tram Strip, with capital of $4.2 billion in Ba Ria Vung Tau, and South Hoi An with investment of $4 billion, in Quang Nam, are licenced.
While Ho Tram Strip was officially put into operation in the first phase and the next phase is underway, Nam Hoi An is still in the process of looking for an alternative investor to replace Genting Berhad Malaysia.
According to Dau Tu, on January 20 the authorities of Quang Nam province met with the current investor of Nam Hoi An project - VinaCapital – and the proposed alternative investor Chow Tai Fook from Hong Kong.
It is possible that this project will have another investor, which specializes in the casino business. However, detailed information about this investor has not been disclosed. Late last year, Mr. Don Lam, Vinacapital CEO, told Dau Tu that the Nam Hoi An project will kick off in mid-2015.
