Casinos in Vietnam are facing difficulties because of the slowdown in growth of Chinese travelers.
However, some investors plan to pour billions of dollars into integrated resorts with casinos in order to lure and persuade guests to stay longer.
KN Group has asked to develop a casino at its KN Paradise resort in Cam Ranh, Khanh Hoa province. If the plan gets approval, the total investment capital would rise to $2.06billion with capital contribution by KN Group, a partner and casino manager from the US, as well as fromdomestic commercial banks.
|The number of large casinos in Vietnam remains modest with the two best known names The Grand Ho Tram and Corona Phu Quoc. It is expected that the market this year will receive newcomer Nam Hoi An ($4billion).|
The investor of Gotec Land is also planning to develop a casino at its Asiana Park View Resort complex of hotel, apartments and villas.
The number of large casinos in Vietnam remains modest with the two best known names The Grand Ho Tram and Corona Phu Quoc. It is expected that the market this year will receive newcomer Nam Hoi An ($4billion).
After that, gamblers will have to wait 3-4 years to see new casinos. One of them is in Van Don in Quang Ninh province and the other is Laguna Lang Co in Hue City.
Casinos help increase the value of villas, condotels and shophouses. They also help create revenue for local budgets, generate thousands of jobs and improve Vietnam’s brand in Asian resort tourism.
However, analysts warn that spending billions of dollars on casino development will not guarantee profits for resort investors. Casinos in Vietnam may face problems as the growth of Chinese travelers to Vietnam has slowed.
According to the General Statistics Office (GSO), the number of foreign travelers to Vietnam in the first half of the year increased moderately by 7.5 percent compared with the same period last year (8.5 million).
China, which provides the highest proportion of foreign travelers, saw a decrease of 3.3 percent. The market had a growth rate of 24 percent last year.
The decrease in number of Chinese travelers to Vietnam is attributed to the US-China trade war. The South Korean market has also seen a slowdown after a period of hot development.
Chinese travelers are considered the major driving force for growth of Asian casinos.
A report from JP Morgan pointed out that Chinese citizens account for the highest proportion of gamblers at casinos in Asia, especially in the VIP segment. Vietnam's geographical position near China and marketing campaigns will play the decisive role in attracting gamblers.
Experts say that casinos are no longer attractive to foreign investors but appear to be a promising field for Vietnamese enterprises.