INTRODUCING
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Featuring a $500
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High Roller.
INNOVATE GAMING | MARKETS - ASIA
Vietnam
Vietnam’s first integrated resort, The Grand – Ho Tram Strip opened in July as part of a US$ 4.2bn
project to enhance the nation’s tourism appeal. Elsewhere in the Southeast Asian country, local leaders are
hoping to attract further investment to develop tourist-aimed casinos.
Except for the state-run lottery, gambling was strictly
outlawed in Vietnam until 2003 at which time the
government permitted a few five-star resorts to operate
casinos. According to the latest Ministry of Finance statistics,
the country now has around 50 casinos, which are mainly
low-key and operate exclusively with slot machines.
Developing a gaming industry in a country that bans its
citizens from entering casinos poses huge risks to say the
least. MGM Resorts pulled out of operating The Grand,
just a few months ahead of its launch. Although tourism is
on the increase in Vietnam and the country’s boasts a large
population of 90 million and thriving gambling culture.
In recent times, the Vietnamese economy has suffered from a high rate of inflation and underperforming
bank sector. The government is looking at a wide range of reforms to generate more revenue and casinos
seem an attractive option. A positive sign arrived last year when Vietnam’s Finance Minister visited
Singapore to understand its regulatory framework that enables its citizens to frequent casinos.
The argument exists that by opening gambling to locals, the government would be able to offset revenue
lost to illegal bookies and offshore websites. Gambling is very commonplace amongst the Vietnamese
and citizens often travel to neighbouring Cambodia and Macau to gamble. The government also seems
convinced that loosening gaming laws will attract further investment for casinos to promote tourism.
“If Vietnamese are not allowed to visit casinos at home, they would go to casinos abroad,” said Minister
Vu Duc Cam, Chief of the Government Office. “And so the Vietnamese government fails to get tax from
its citizens. If we are not brave, we would find it difficult to develop the economy.”
The Grand – Ho Tram Strip was the sixth integrated resort to be licensed in Vietnam and is the first of
a group of resorts being developed on more than 400 acres of land and pristine beach, two hours drive
from Ho Chi Minh (formerly Saigon). At the other end of Vietnam, the country’s northern provinces of
Ha Giang and Quang Binh are seeking investment to build casinos on a rocky UNESCO geo-park.
Although the socialist government is warming to the idea of casinos to revive the nation’s economy, the
existing ban on local citizens and investment threshold of $4 billion has so far proved too high risk for a
financial commitment. Colin Pine, Ho Tram Project General Director, informed: “All of the major casino
companies have looked at Vietnam and continue to do so.”
“Any gaming projects [in Vietnam] will be aimed squarely at the VIPs/high rollers from overseas,” added
Singapore-based Ben Lee, Managing Partner at iGamix Management & Consulting. “This business
model is extremely risky, as not only is the business itself subject to extreme volatility due to seasonality
and air access factors, without the local mass to give the casinos that busy feel, the foreign VIPs may not
return after their first visit.”
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