Investor proposes 11th delay in planned completion of $4.23bn casino in southern Vietnam
Investor proposes 11th delay in planned completion of $4.23bn casino in southern Vietnam
Ho Tram Project Company, the investor of a casino complex project which carries a price tag of US$4.23 billion in Ba Ria-Vung Tau Province, southern Vietnam, has proposed extending its planned completion to 2027, marking the 11th delay in the project execution time that the company has sought.
The Ministry of Planning and Investment has also sought the prime minister’s permission for the extension of the project’s construction timeline and the adjustment to the operation conditions of an entertainment area for foreigners, as well as some other items at the project.
According to the ministry, the investor’s proposal to extend the implementation period for the project to December 2027 is reasonable.
However, the ministry requested the investor to commit to ensuring the planned progress of the project if it gets the prime minister’s approval for its proposal.
If it fails to complete the project as committed, the project may be ceased.
Assessing Ho Tram Project Company’s financial capacity, the Ministry of Planning and Investment cited the company’s financial reports from 2020 to 2022 as saying that the firm had incurred continuous losses.
As of March 31, 2023, the company suffered losses of some $449 million, or 68 percent of its $660 million equity.
The company affirmed that it always prepared resources for its project. It has borrowed some $63 million from state-run lender VietinBank.
As per the investment certificate issued in 2008, the company was allowed to operate 180 live-gaming tables and 2,000 electronic gaming machines but the casino currently boasts only 90 live-gaming tables and 464 electronic gaming machines.
The investor has pledged to channel an additional $60 million into the project in June this year and another $75 million in January next year.
Ho Tram Project Company secured the investment license for the casino complex in 2008.
The project includes a five-star hotel with 9,000 rooms, villas, an 18-hole golf course, an international conference center, a world-class entertainment facility, and utility areas.
The complex was originally expected to fully open its doors in 2014.
The compound opened in 2013 after finishing the first phase of its development.
At that time, the complex consisted of a 541-room five-star hotel, a casino, a world-class entertainment facility, restaurants, a high-tech meeting space, an exclusive VIP area, and a golf course.
Ho Tram Project Company is an arm of the leading global private equity firm Warburg Pincus.
