Pilot program may be first step
Will the Vietnamese government open the country’s casinos to the people of Vietnam? That question is now before the Institute of Regional Sustainable Development, under the direction of the Viet Nam Academy of Social Science, reports the Vietnam News.
The study was launched in April. Interestingly, it is being funded by the American Chamber of Commerce in Vietnam, the publication reports.
“This is the most complete research project ever on the gaming industry in Vietnam, providing a scientific basis for the government to consider suitable policies,” said Nguyen Quang Thuan, vice president of VASS, in a September 30 statement. “The gaming industry in general and casino business in particular in Viet Nam is strictly managed. The gaming industry is divided into legal gambling activities that are allowed and supported by the state and illegal gambling activities.”
Vietnam’s Ministry of Finance says revenues from the lottery and casino businesses totaled VND64 trillion (US$2.9 billion) and VND1.3 trillion ($63.2 million) respectively in 2014, and poured some $917 million into state budgets for the year. But illegal vendors are getting their share of the action too. Some 200 illegal lottery vendors are at work in the provinces, and generate millions to billions of dong per day per vendor, according to the Ministry of Public Security.
Some Vietnamese residents who want to gamble simply cross the border to Cambodia to play. Cambodian gaming revenues are about US$250 million per year, and comes mostly from Vietnamese gamblers, reported the News.
“Research indicates that the legal gambling industry and casino business could bring positive economic impacts such as revenues increase, job creation, improvement in local people’s income, attraction of investment capital and contributions to the state budget,” said Nguyen Dinh Chuc, deputy director of the Institute for Regional Sustainable Development.
A survey shows that 65 percent of Vietnamese polled say gambling could increase government revenues, and almost 53 percent say it would reduce gambling abroad. Significantly, 71 percent said many Vietnamese would visit casinos if they were allowed.
To test the waters, a pilot program has been recommended that would allow Vietnamese to visit casinos and play “prize-winning games,” the News reported. The program would likely be based in casinos in Hanoi and Ho Chi Minh City, such as Ba Ria Vung Tau and Phu Quoc.
“Policy prescriptions for the gaming sector and casino industry should be based on global practices and an effective management model. It is necessary to develop a legal framework and business management mechanism that also addresses online gaming operations,” Chuc said.
According to the TuoiTre News, the government is reportedly considering a draft decree that could allow citizens to enter casinos under certain conditions, for example, if they pass an income test. “Another suggested barrier is to impose an entry levy on Vietnamese citizens in the manner of Singapore,” the News reported.
Allowing locals to play is almost certain to increase interest among foreign investors in the country’s gaming industry.
“Vietnam has great potential, although there are areas for improvement before it becomes a truly attractive gaming market,” CLSA analysts Aaron Fischer, Marcus Liu and Jon Oh said in a September report. “The great potential is Vietnam’s fast-growing, relatively young population of 90 million with a high propensity to gamble.”
