VietNamNet Bridge - Chow Tai Fook Enterprises, a diversified Hong Kong-based company engaged in property development, hotels, casinos, transportation, jewelry, port and telecommunications businesses, has said that it is ready to invest $4 billion in a casino project in Quang Nam, a province in central Vietnam.

Mr. Henry Cheng, Chairman and Executive Director of New World Development Company Limited and Chow Tai Fook Jewellery Group Limited, told Bloomberg that they were very interested in the casino project in Quang Nam, but he refused to disclose more details. “We are doing something now to secure this project,” he told Bloomberg.

Mr. Don Lam, Chief Executive Officer of VinaCapital, investor of the Nam Hoi An casino projects (Quang Nam), declined to comment and said the deal had to undergo multiple procedures and it was unfinished.

Chow Tai Fook is owned by Cheng Yu Tung's family, the fourth richest man in Hong Kong. This firm is looking for business opportunities in the field of gambling as a growing number of Chinese travel overseas. This family also invested in casinos in Macau, the only place in China where gambling is legal.

The Nam Hoi An casino project was granted with an investment certificate in December 2010, a registered capital of $4 billion with the participation of VinaCapital and Genting Berhad Malaysia. However, in September 2012, Genting Berhad Malaysia unexpectedly withdrew from the project and VinaCapital had to find a new investor.

Talking to the press in a recent meeting, Don Lam revealed that VinaCapital found suitable investors to re-launch the project, but he refused to disclose the name of the alternative investors. "The Nam Hoi An project will be kicked off by Vinacapital and its partners in mid- year," said Don Lam.

In related news, Don Lam has resigned as non-executive director at theVinaCapital Vietnam Opportunity Fund (VOF), according to VinaCapital as the fund manager and the fund’s board of directors.

The former director has been a member of the board since VOF’s establishment in September 2003 with capital of only US$10 million. VOF as of October this year had the net asset value (NAV) of around US$796 million and is considered as the biggest closed-end fund in Vietnam with diversified and effective investment activities.

Steven Bates, chairman of VOF, said Don Lam’s contribution to the development of VOF is huge. However, his decision of withdrawing from VOF’s board of directors is seen as a pledge to enhance independence between VinaCapital and VOF’s board of directors, and from now all members of the board are independent ones.

Steven Bates added that the withdrawal of a senior officer would cause some chaos. However, it expresses a desire of Don Lam and members of the board of directors that the board will handle executive activities at VOF independently.

According to VinaCapital, Don Lam’s resignation will not affect his role as general director of VinaCapital as well as its investment business. The move is to raise governance standards of VinaCapital and to enhance legal compliance of the corporation since the boards of directors of funds under VinaCapital’s management should involve independent members only.

VOF has recorded good earnings results in 2014 thanks to acquiring fund certificates and profit from its stakes in Kinh Do Corporation, Hoa Phat Group, DHG Pharmaceutical Company, An Giang Plant Protection Company and PetroVietnam.

According to VinaCapital, VOF’s profit mainly comes from investment in the capital market and private enterprises. Therefore, VOF will continue to operate in those fields.

VOF’S shareholders want investment in the capital market to account for 50-60% of the fund’s portfolio compared to 30-35% currently.

VinaCapital now manage three closed-end funds listed on the London Stock Exchange including VinaCapital Vietnam Opportunity Fund (VOF), VinaLand Limited (VNL) and Vietnam Infrastructure Limited (VNI). The fund manager and prestigious technology group Draper Fisher Jurvetson also co-run DFJ VinaCapital L.P fund.

VNE/SGT