Vietnam’s pilot casino project reports?€239.5 million in losses

Jenny Ortiz March 25, 2024

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Vietnam’s pilot casino project reports?€239.5 million in losses

The Vietnamese Ministry of Finance has unveiled concerning figures regarding the pilot casino project in Phu Quoc, revealing accumulated losses amounting to over VND6.4 trillion (€239.5 million) up to the present time.?

The Vietnam News reported that Vietnam’s Minister of Finance Ho Duc Phuoc underscored the financial struggles encountered by the experimental initiative allowing Vietnamese nationals to engage in gambling activities.

Despite concerted efforts and collaborative ventures among various ministries and sectors, the trial project faces significant financial hurdles due to a decrease in participation.

Background and operational status?

The casino project was authorized by the Politburo in 2016 for a three-year trial period, permitting Vietnamese citizens to gamble in selected casinos situated on Phu Quoc Island and in Van Don District.

To date, only the Phu Quoc Island casino project has been operational since January 2019.

Financial losses amid revenuegGeneration?

The report outlines a concerning trend of accumulating losses despite revenue generation efforts.

According to the report, challenges persisted with the dwindling number of Vietnamese players comprising a mere 39 percent of total visitors in 2023, partly attributed to the residual impact of the COVID-19 pandemic.

Signs of recovery amidst challenges?

Despite the adversities, the casino industry exhibits signs of resilience, as evidenced by State budget contributions surpassing VND2.54 trillion (€95 million) in 2023, marking a substantial increase from the preceding year and facilitating the creation of approximately 8,500 employment opportunities.

Future directions and stringent measures?

Phuoc has proposed stringent criteria for licensing casino businesses, advocating for substantial investments in service, tourism, commerce, and entertainment sectors, with a minimum investment threshold of $2 billion (€1.85 billion).

Furthermore, he emphasizes that casinos must fulfil specific prerequisites, including disbursing at least 50 percent of the total investment capital and obtaining explicit approvals from the Politburo and Prime Minister before commencing operations.?