Investors from South Korea and Hong Kong are lining up to get a piece of Vietnam’s prized horse and dog race course and casino projects.
This was according to Vietnam foreign investment expert Nguyen Van Toan who said that Vietnam is becoming a darling of South Korean and Hong Kong investors eyeing gaming projects in the Southeast Asian nation.
VietNamNet Online Newspaper reported that the interest of these investors came after the Vietnamese government implemented several measures allowing gambling in the country. It said that projects on developing horse and dog race courses are now up in the air for investors to take.
Toan pointed out that most foreign investors have experience in the betting business. He said they are willing to comply with the government’s requirement to shell out a minimum of US$2 billion to develop casinos in Vietnam.
On the other hand, investors must be ready to invest a minimum capital of VND1 trillion (US$43.97 million) for horseracing and VND300 billion ($13.19 million) for dog racing.
For Toan, investment capital is where foreign investors have the advantage.
At present, South Korean firm GOMAX I&D has allocated $1.5 billion for the construction of what is described to be the largest horse race course in Vinh Phuc province.
FLC and FLC-Faros, on the other hand, have announced that the firms will jointly develop an integrated resort casino in Van Don Economic Zone in Quang Ninh province.
What makes Vietnam attractive to foreign investors, according to Vietnam Real Estate Association deputy chair Nguyen Ngoc Thanh, was the fact that the country remains an untapped market. With this in mind, he said that competition among investors will not be fierce compared to other gambling jurisdictions.
Thanh added that investors only come to Vietnam only come to the country when they see great opportunities.
Renowned Vietnamese economist Nguyen Tri Hieu, however, warned the government against granting too many licenses to foreign investors. Unlike the manufacturing sector, Hieu explained that the gambling industry will not make great contributions to the nation’s economic development.
He pointed out that the government will only earn from the gambling industry through the taxes paid and the income will not stay in Vietnam. Hieu also doubted whether the new race courses and casinos will be able to provide more jobs in Vietnam.
He said that it is necessary for Vietnam to create policies that encourage foreign investors to set up joint ventures with Vietnamese partners.
