First IR for Chinese junket investor
Work continues on what will become the largest casino resort in Vietnam. According to Reuters, when complete the $4 billion Hoiana project will extend across almost 1,000 hectares (2,471 acres), and include shops, restaurants, golf courses and water parks as well as a 140-table casino. Phase I will open next year, with total buildout expected in 2023.
Suncity Group Holdings Ltd. is behind the project. It’s the first IR venture for the junket operator, which has generated billions bringing high rollers from Mainland China to Macau. Suncity has a one-third stake in the project, as do VinaCapital, a Vietnamese investment management and real estate firm, and the Hong Kong-based VMS Investment Group.
Two other casinos are also in the works in Vietnam: one in Van Don in the northern province of Quang Ninh, and one on Phu Quoc Island in the south. Unlike Hoiana, those projects will be part of a three-year pilot program that will allow Vietnamese citizens to gamble at casinos for the first time.
“The government really wishes to bring tourism here,” said Henry Tam, project director of Hoi An South Development, of the development that will also include a school and sports stadium.
The Reuters report suggests that the ban on locals could present a problem to the mega-resort, especially given growing competition in Asia, including in Macau, South Korea, the Philippines, Singapore and soon, Japan.
As an example, the news agency cites Ho Tram, a multi-billion dollar casino project located a two-hour drive from Ho Chi Minh City, which opened in 2013. Owned by Asian Coast Development and led by hedge fund manager Philip Falcone, Ho Tram has struggled to lure foreign gamblers to its remote location.
One encouraging factor is the rise in Chinese tourism. In 2017, 4 million Chinese visited Vietnam, up 49 percent from the previous year. Moreover, Suncity’s 34 percent stake in Hoiana will help position it as a contender for a casino license in Macau, said analyst Grant Govertsen of Union Gaming.
“I think it’s a very good investment,” he said. “Our marketing strategy is that we will become the entertainment hub of the Danang and Hoi An area.”
