First foreign-invested computerised lottery services launched in Vietnam
First foreign-invested computerised lottery services launched in Vietnam
Malaysian conglomerate Berjaya Corporation Bhd., through its subsidiary Berjaya Gia Thinh Investment (Berjaya GTI), launched the first phase of its Vietnamese lottery business today.
In January, Berjaya won the bid over five other international companies to become the first foreign investor to tap into Vietnam’s lottery market. Accordingly, Berjaya and Vietnam Lottery One-member limited liability Company (Vietlott), the only company in Vietnam allowed to sell computerised lottery, were awarded a $210.58 million contract to exclusively invest in and operate a computerised lottery project in Vietnam in 18 years.
The Mega 6/45 computerised lottery has the highest prize of VND12 billion ($540,000). In the first five months, Vietlott is going sell Mega 6/45 tickets at 800 locations exclusively in Ho Chi Minh City. In the next five years, the company aims for 10,000 locations all over the country.
Mega 6/45 is the first product rolled out by Berjaya GTI. Other products that will be on offer are Lotto Games, Digit Games, and Fast Draw Games, which will be distributed through various channels, such as computerised terminals, telephones and mobile phones, and the Internet.
Berjaya GTI is 51 per cent owned by Berjaya Lottery Vietnam Limited, which, in turn, is 80 per cent owned by Berjaya Corp. and 20 per cent owned by Berjaya Sports Toto Bhd. The remaining 49 per cent is owned by Vietlott. Berjaya expected that the 18-year exclusive contract and minimal competition are going to help the project sustain high growth.
In a recent analysis, Maybank Investment Bank Bhd. estimated that Vietnam’s lottery industry is worth $3 billion, and that Berjaya’s Vietnamese lottery business could potentially rake in a net profit of RM522 million ($131 million) per annum “during its steady state”. The bank said it is “positive on this development, but unsure as to when BGTI will reach steady state.”
Berjaya has invested in many fields in Vietnam, including real estate, hospitality, and securities. Notable investments include Sheraton Hanoi and InterContinental Hanoi Westlake hotels, Long Beach Resort Phu Quoc, and SaigonBank Berjaya Securities JSC.
