Electronic gaming and casino projects will remain off-limits for the majority of firms. The Ministry of Finance (MoF) is taking recommendations from relevant governmental agencies for a draft decree which governs the operations electronic gaming services and casinos – a sensitive investment area in Vietnam.
Casinos and tourism resorts go hand-in-hand
Until now, Vietnam has yet to formally legalise documents to cover operations of casinos, while electronic gaming services are allowed within the framework of the governmental Decision 32, issued six years ago.
In accordance to the MoF’s draft decree, only five-star hotels will be eligible for providing electronic gaming services. This new licencing criteria is stricter, since currently four-star hotels in Hanoi and Ho Chi Minh City and three-star hotels in other cities and provinces already qualify.
Meanwhile, the MoF has proposed that businesses with at least 10 years of experience in the field can apply to open casinos in Vietnam. But, such casinos must be incorporated in recreational and tourism projects, the minimum capital of which would be determined by the government for a certain period of time. Additionally, licences for casinos must be approved by the prime minister.
“The businesses will be allowed to operate their casinos only after they complete disbursing half of the committed investment capital of the licenced projects and proving their ability to finance the rest of the committed funds,” said the draft decree.
A licence for operating casinos in Vietnam would not exceed 30 years and that for electronic gaming services would not exceed 10 years. According to the draft decree, the MoF will be the licencing agency of casinos and electronic gaming services, instead of the Ministry of Planning and Investment (MPI).
The MoF’s draft decree, however, did not actually set any limits to the number of casinos and electronic gaming providers across the country. MPI statistics showed that there were four businesses currently operating small-scale casinos in northern Haiphong, two in northern Quang Ninh province and one in northern mountainous Lao Cai province.
Additionally, Silver Shores Hoang Dat, which was licenced in 2006, will soon open its resort with casinos in Danang. Last year, Canada’s Asian Coast Development Limited’s $4.2 billion Ho Tram Strip resort complex in southern Ba Ria-Vung Tau province was licenced, and allowed casinos. The complex is set to open in 2011.
The MPI said a growing number of foreign investors had expressed interest in building new casinos in Ho Chi Minh City, Quang Nam province, Ba Ria-Vung Tau, Kien Giang province’s Phu Quoc Island and Binh Thuan.
“Vietnam should have only three casino projects, one in Quang Ninh, one in Quang Nam and one in Phu Quoc,” said Pham Ich Tong, chairman of Global C&D, an investor of the Dragon Beach Resort in central Quang Nam province.
Licenced in September this year, Dragon Beach Resort will be jointly developed by the US’ Tano Capital and Global C&D at a cost of $4.1 billion, featuring nine hotels and associated gaming facilities, a 50 hectare park, an international convention centre, a shopping centre and office and residential spaces on a 400ha site close to Hoi An Ancient Town.
Also under the draft decree, only foreigners and Viet Kieu will be allowed to gamble at either casinos or electronic gaming locations in Vietnam, despite growing petitions from businesses to the government to allow Vietnamese nationals’ entry.
| Dragon Beach $4.1bn 400he tourism venture licenced – October 2009 |
| Thursday, 08 October 2009 | ||||
Dragon Beach $4.1bn 400he tourism venture licenced – October 2009 An American bank rolled group has received a along awaited licence to develop a multi billion dollar resort complex in central Vietnam, amid doubts over the project's huge scale and financial ability. The project, known as Dragon Beach Resort, will cover 400 hectares in Dien Ban district in central Quang Nam province, close to the world-famous Hoi An ancient town. Dragon Beach Group, a joint venture between Tano Capital LLC and Global C&D INC, plans to invest about $4.1 billion in nine hotels with 18,000 rooms associated with electronic gambling facilities in a 50ha park, an international conven tion, a shopping centre, and office and residential facili ties. The project was licenced after years of applications amid suspicions over the developers' financial capacity to pursue such a mammoth investment. Karl Derek John, chair man of TCK Group, said these were sensible precautions and it was presumed that all concerns had been met. John said news that the group had received the green light to build nine 2,000 room casino hotels "was amazing and would certainly catch global attention" but still had doubted over the project. Whether the developers can attract an average 27,000 people per day remains unanswered. Other grey issues were whether airport facilities, roading infrastructure and well trained staff could han dle such a large number of visitors, he said. "Truly remarkable, as we say in Vietnam, seeing is believing. I like many others in the industry will be watching with baited breath," said John. In an interview with VIR, Quang Nam Department of Planning and Investment director Tran Van Tri said the province was cautious with the project because its scale was too huge, adding that investors had to prove their financial ability before getting government and local authority licencing. Pham Ich Tong, chair man and general director of Global C&D, said the pro ject would be one of the largest recreation resorts in Vietnam. "We have been waiting for a licence for years," Tong said. He said the first priority was to complete design and construction preparations. Under the investment certificate, the investor will start ed the construction of three international hotels during 2011 to 2013. The other facil ities such as parks, interna tional convention and shop ping centres and hotels will not be developed until 2019. The Dragon Beach Resort project was first submitted in 2004 under the name of Vina Las Vegas, but the governstipulated investors had to change the name of project as it was deemed inappropriate. The project received permission for launching a fea sibility study. However, it did not get a licence and Lehman Brothers Incorpo rated withdrew from the pro ject. In 2006, Tano Capital LLC joined hands with Global C&D to continue pursuing the project. VIR______________________________________________________
| ||||
