VietNamNet Bridge - While investors are excited about casino development projects, they have been warned that big difficulties lie ahead.

Though Vietnamese are still prohibited from gambling, six casino projects have been licensed, five of which have become operational.

The government has also agreed on two casino projects in Phu Quoc Island and Van Don in Quang Ninh province. Meanwhile, Banyan Tree Holdings from Singapore and Sun Group from Vietnam have asked for permission to build casinos in Thua Thien-Hue province and Da Nang City. 

Hong Kong’s Chow Tai Fook Enterprises and Macau’s SunCity Group have received a license to replace the Malaysian Genting Group to develop a hotel and casino complex in Hoi An ancient town. 

While investors rush to pour money into casinos, analysts say the business field is not as profitable as thought.

Asia is believed to be a fertile land for the entertainment industry. But this has also caused fierce competition among casino developers.

Caesars Entertainment from the US is seeking a license for a $1 billion casino in the Philippines. The company has also joined forces with Indonesian Lippo to develop a project in Yeongjong Island in South Korea.

An analyst went on to say that the existing casinos mostly target clients from China. Meanwhile, the number of Chinese travelers to Vietnam has been decreasing because of tensions in the East Sea.

The Hai Phong International Tourism Joint Venture, the developer of Do Son Casino in Hai Phong City, in its 2014 finance report, said it had incurred losses in the last 20 years of operation.

Hoang Gia International, the owner of Hoang Gia Ha Long casino, has also reported a loss of VND44 billion, attributing this to the dispute in the East Sea.

Hoang Gia’s CEO Do Tri Vy said Hoang Gia has discussed with Macau’s Salong Group the solution to bring more clients to Hoang Gia Ha Long casino, suggesting that Salong would book 180 rooms at the casino for players from Macau.

However, analysts commented that this could not be a solution for sustainable development. The Chinese government has laid down new policies to fight against corruption in the country, which has led to sharp falls in the number of Chinese travelers going abroad.

The casinos in Vietnam are not the only ones suffering from the new policy. BBC News reported that the revenue of the casino industry in Macau, the biggest casino center in the world, for the first time dropped by 2.6 percent in 2014, while revenue tumbled by 30.4 percent in December.

NCDT