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Casino projects remain picture cake
A lot of big investors who once showed their strong determination to develop casino projects have become reluctant to fulfill their plan because they can see no big opportunity as thought before.
In 2010, Genting Malaysia Berhard, a subsidiary of the Malaysian group Genting, and VinaCapital once made a strong commitment on investing 4 billion dollars on Nam Hoi An project, of which the casino is an important investment component.
However, in 2012, the investor unexpectedly announced the withdrawal from the project without giving any specific reasons.
Another “big guy” in the field, Las Vegas Sands, in 2012 also announced the plan to develop casinos in the two gigantic resorts in the north and the south of Vietnam, totaling 6 billion dollars. However, no further step has been made by the investor. The president of Las Vegas Sands then told the local press that casinos were expected to be the main source of income for the resort. However, the Vietnamese current law prohibits Vietnamese player.
His words could be understood that the ban has made the investors shrink back.
The hottest topic for discussion now is the development of the 4.2 billion dollar Ho Tram Strip project initiated by Asian Coast Development Limited (Canada). Too many problems have arisen during the project implementation. The first phase of the project was kicked off six months later than initially scheduled. The former CEO threatened to sue the investor for being deprived of management power. MGM Hospitality, the manager, quit the project.
Other multi-billion dollar casino projects have also been at the standstill. In the central region, the 4.3 billion dollar New City project invested by New City Group from Brunei is still under the sight clearance period, though it got the investment license in 2008. In the South, the 4.1 billion dollar project in Ba Ria – Vung Tau province has the same fate. The 4-billion-dollar Bai Bien Rong project in Quang Nam province has had the license revoked because the investor could not prove its financial capability.
Most recently, Quang Nam provincial authorities have requested VinaCapital to report about the new investor to replace Genting in the project. The report must be submitted in September, before the local administration decides the fate of the project.
As such, most of the projects remain on paper, while only a few have turned into reality. Meanwhile, the government has promulgated the decree, clearly stipulating that Vietnamese are inaccessible to casinos. The business field cannot enjoy any preferences in the taxes and fees relating to the import machines.
Analysts have commented that the decree is the main hindrance to the development of casino projects in Vietnam. When planning the project, the investors might target Vietnamese as the main clients, because the number of foreign travelers to Vietnam remains modest if compared with the number of travelers to neighboring countries and territories, such as Macau, Hong Kong or Singapore.
According to the general statistic office, there were only 7 million foreign travelers to Vietnam in 2012, or just a half of that to Singapore in the same year.
Doctor Le Dang Doanh, a well-known economist, has noted that the current polices related to casino development are contradictory. While the government prohibits Vietnamese to enter domestic casinos, it cannot control those who cross the border gates to gamble in Cambodia.
vietnamnet
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