Inside Asian Gaming

INSIDE ASIAN GAMING | January 2011 28 annum, the country also boasts one of Asia’s fastest growths in new millionaires (in percentage terms). But currently, none of those economically ambitious Vietnamese are allowed to gamble in the country’s four currently licensed casinos. As background to the current legal position, Articles 248 and 249 of Vietnam’s Penal Code criminalise gambling in Vietnam. Certain exemptions allow casinos and electronic gaming that cater exclusively to foreigners. For practical administrative purposes, ‘foreigners’ includes Vietnamese who hold the passport of a foreign country. These are known as ‘Overseas Vietnamese’, many of whom or their parents left the country during or after the Vietnam War. This diaspora amounts to approximately 3.7 million people, of whom 1.6 million live in the US or have the right of residency there, according to the US Census Bureau. Vietnam had an estimated 4.5 million tourist arrivals in 2010, according to the Vietnam National Administration of Tourism (VNAT). Macau clocked up 21.7 million visitors in 2009, according to Macau government statistics. Those Macau visitors currently support a market that has spent an estimated US$10 billion on casino infrastructure since the first foreign-owned casino, Sands Macao, opened in 2004. (That capital spend from the private sector excludes the yet-to-open Galaxy Macau at US$1.8 billion and Sands China’s Cotai 5 and 6 project, weighing in at US$4.2 billion.) North and South—Vietnam’s casino resort projects CHINA LAOS THAILAND VIETNAM CAMBODIA Hanoi Hoi An Ho Chi Minh City (Saigon) Hainan Is Gulfof Tonkin Halong Bay Da Nang HoTramp Strip In Focus Integrated casino resort projects announced for Vietnam Ho Tram Strip Hoi An Cat Ba Amatina Announcement date May 2008 December 2010 December 2010 Location Southeast Vietnam (South China Sea coast, Ba Ria-Vung Tau province) Central Vietnam (South China Sea coast, Quang Nam province) Northern Vietnam (island in Halong Bay, Quang Ninh province) Nearest city Ho Chi Minh City (130km) Danang (24km) Hanoi (170km) Cost US$4.2 billion (phased) US$4 billion (phased) TBA Opening Q1 2013 (1st phase) TBA 2015 (est.) Financial partners announced Harbinger Capital Partners Secondary investors TBA TBA Casino 10,000 sq. meters with 90 live tables and 500 electronic games (1st phase) Additional 500 electronic games (2nd phase) Yes – details TBA Yes – details TBA Hotels MGM Grand Ho Tram (5-star) 550 rooms (1st phase) Additional 550 rooms and 14 villas (2nd phase) ‘5-star hotel’ ‘4-star to 5-star hotels’ Other facilities and real estate Retail, luxury restaurants, conference centre, 18-hole golf course designed by Greg Norman Villas, 2,500 houses Marina, commercial and service centres, entertainment parks, international conference centre, villas, sports centre Other partners MGM Resorts International (casino and hotel operations) Steelman Partners (design) Rider Levett Bucknall (quantity surveying and co-project management 1st phase) TBA Belt Collins Hawaii (design consultancy) Developers Asian Coast Development Ltd Genting VinaCapital (JV of Malaysia’s Genting and Vietnamese fund manager VinaCapital. US$800 million minimum direct investment from JV in four phases) Vinaconex-ITC (a joint stock company of Vinaconex, a Vietnamese construction, finance and import- export business