VIETNAM

Simpler rules to spur investment

Vietnam is reportedly considering revisions to its casino decree as part of plans to slash the red tape seen as hindering the development of a large range of industries.

The Ministry of Finance intends to cut 51.4 percent of the total number of business investment conditions that come under its remit and will amend or supplement 16 decrees. As well as gaming, the sectors include insurance, customs, accounting and securities, local media reports.

According to Vietnamnet Bridge, the MoF will cut eight conditions relating to lottery and electronic games and simplify a further two. Electronic gaming services will see three fewer conditions, while casinos would be subject to one fewer, with a further regulation simplified. In addition, horse and dog racing would see two conditions removed and four simplified.

It gave no further details of what the government is planning.

“This is, of course, good news for us,” said Hong Nam Pyo, CEO of Gomax, which has applied to invest in an international standard racing facility in the north. “It has not been specified what obstacles could be eliminated or amended. However, the simple fact that the MoF wants to make monumental changes is a step in the right direction,” he was cited as saying.

Any efforts to reduce bureaucracy are likely to be warmly welcomed by potential investors to Vietnam. The country is seen as one of the most promising emerging markets in Asia, with the government recently introducing legislation to bring rules more in line with international standards.

Those rules have allowed Vietnamese residents to gamble in two IRs for the first time as part of a pilot scheme for three years. The government is hoping to repatriate some $800 million estimated to be wagered by Vietnamese outside the country each year.

International tourist arrivals are growing strongly, gaining almost 23 percent in the first eight months of this year, with arrivals from China up 28 percent. Visitor numbers from South Korea surged 52.4 percent. The gains add to a healthy 29 percent increase in arrivals in 2017.

Development of IRs in the country is continuing, with the country’s first and biggest announcing the addition of a new hotel brand.

However, the simple fact that the MoF wants to make monumental changes is a step in the right direction.

The owner of the Grand Ho Tram, says Wyndham Hotels and Resorts will build a 12-storey hotel on the Ho Tram Strip under its Ramada brand. The facility will be an uppermidscale seafront hotel and is expected to open in late 2019. The hotel will feature 198 rooms, including seven two-bedroom penthouses and 36 three-bedroom villas.

It’s located less than two hours from the nation’s largest metropolis, Ho Chi Minh City, and Tan Son Nhat International Airport. It will also be just 60km from the planned Long Thanh International Airport, set to become a major gateway for Vietnam and the ASEAN region.

“Vietnam is one of the world’s most dynamic tourism destinations. The country attracted 7.9 million international visitors in the first half of 2018, putting it firmly on course for yet another record-breaking year – potentially exceeding the previous record of 12.9 million visitors achieved in 2017. To cater for this strong demand, impressive new developments are rising all across the country, including the Ho Tram Strip – Vietnam’s first and largest integrated resort,” said Joon Aun Ooi, president and managing director, Wyndham Hotels & Resorts, South East Asia and Pacific Rim.

After several delays, in August, Macau’s largest junket operator SunCity Group confirmed it had completed its acquisition of a 34 percent stake in the $4 billion Hoiana IR, which is being developed in central Vietnam and seen as one of the locations with the greatest potential.

The group purchased the entire equity interest in and shareholders loan to Star Admiral Limited, a company involved in the IR project.

The deal was originally scheduled to close on May 31, but was pushed to August 31 after the company requested more time to fulfil certain conditions and to receive approval from a Vietnam-based commercial bank. Hoiana is expected to open in mid-2019 with entertainment and retail facilities, a casino with 140 tables and 1,000 slot machines, a golf course clubhouse, a mass market hotel with 313 hotel rooms, an all-suite hotel with 136 suites, a hotel villa resort with 70 units, as well as 30 villa units for sale and timeshare rental, and a condo-hotel with 236 rooms for sale and timeshare rental.

Aristo sees non-gaming gains

Donaco International’s Aristo International resort in the far north of Vietnam saw an 11 percent decline in gaming revenue in fiscal 2018, though nongaming sales rose almost 13 percent and account for 46 percent of the total following a management push to diversify the business.

Visitation was down 12 percent to 153,000 after the cancellation of some marketing initiatives, which weren’t meeting objectives. VIP table game turnover put in a strong performance, rising 46 percent, helped by new junkets. But the win rate was just 1.91 percent, below the theoretical 2.85 percent.

The VIP win rate has stabilised in recent months, the Australia-listed company said.

Formula One gets backing for Hanoi race

The Vietnamese government has said it supports the idea of staging a Formula One race in the capital Hanoi. “All (government) ministries and agencies support the idea to create a new attraction for Hanoi,” Mai Tien Dung, chief of the government office, was cited as saying.

He gave no details on when the first race might take place. The race is likely to take place in the My Dinh Sports Complex after earlier proposals for the challenge to take place around a central lake and nearby streets were rejected.

The prime minister has asked that Hanoi uses only private funds to host the race.