In an interview with Asian Gaming Brief, Professor Augustine Ha Ton Vinh revealed that the government of Vietnam is close to approving regulations controlling casino gaming in the country, including a test that will permit locals to gamble in two of the country’s integrated resorts.
Vinh is CEO of Stellar Management Corporation and dean of executive education and training – Vietnam at California Miramar University in San Diego. He is a longtime observer of Vietnam with deep ties to government officials, and is also senior advisor to the Van Don Special Economic Zone and Integrated Resorts.
He told AGB that the government is finally ready to promulgate is rules on gambling in the country.
“After three years of soul searching and policy debates, the ruling party’s leaders believe now is the time to move ahead, creating a new gaming industry,” he said. “Late last month, they made clear a number of issues of great interest to investors, operators and local Vietnamese, namely:
1. Local Vietnamese will be allowed to visit designated casinos.
2. Van Don and Phu Quoc integrated resorts are the two locations authorized to accept local Vietnamese on a 3-year trial basis.
3. In addition to the four already approved locations for IRs: Van Don, South Hoi An, Ho Tram, and Phu Quoc, two more integrated resorts are under consideration: in Hue and Cam Ranh Bay.
4. Total investment for an integrated resort is US$2 billion. A minimum $1 billion has to be disbursed before a gaming license is granted.
5. Smaller casinos can be expanded, upgraded to a higher IR level if they meet financial and other requirements, e.g. significant contributions to local economic and tourism development.
6. The new and revised draft gaming casino has to be finalized as soon as possible.”
Vinh says the government has responded to suggestions and criticisms of previous decrees.
“The new version was drafted based on the Party’s decision and covered all the issues of major interest to investors, operators, etc. Some key items include:
1. The Ministry of Finance divides the gaming industry into two levels, large casinos with US$2 billion in investment, and small casinos with any investment below the $2 billion investment level.
2. The draft decree made it clear local Vietnamese, 21 years and above making around US$500 per month in salary, without criminal records, and no objection from family members, i.e. spouses, parents, children, will be allowed to enter casinos.
3. The Van Don and Phu Quoc integrated resorts are designated locations for local Vietnamese. There will be a trial period of 3 years from the date they receive the gaming license.
4. The gaming license will be for a period of 20 years with a one-time non-renewable extension of 10 years.
5. Investors or operators have to commit a minimum of US$2 billion for each integrated resort and a 50 percent disbursement, or $1 billion has to be made before a gaming license is granted.
6. For each US$10 million in disbursed investment, investors can operate one gaming table and 10 electronic gaming or slot machines.
Now that the Party leaders have decided on the future of the Vietnam gaming industry and the next steps, I believe MOF will soon release the final gaming decree, possibly in the next few months.”
Vinh says the exclusion of the Ho Tram IR, which opened in 2013 after a $500 million facility toward a $4 billion project, happened for several reasons.
“From what I was told, since its opening day, Ho Tram was not authorized to receive local Vietnamese,” he said. “There is no change in the party’s position on this matter. In addition, the government has made some concessions granting Ho Tram the gaming license even though ACDL has not reached the investment level required by the initial investment license. To many people, the ball is in Ho Tram’s court. Ho Tram needs to realize its full investment before attempting to attain new ground.
“Since Van Don is near the China border in the North and Phu Quoc is close to Thailand and Cambodian borders in the South, having local Vietnamese in these two locations will definitely help attract much needed foreign investment to these areas which bear some resemblance to rural Macau in the past, and will help expedite the creation of the two special economic zones. I believe, under this new decision, local Vietnamese will not be allowed to enter Ho Tram, at least for the next few years.”
