VietNamNet Bridge – Authorities in Kien Giang province are continuing to seek developers for a planned casino on Phu Quoc Island.

A dozen or so foreign investors have come, studied the conditions for the project's development and operations, and left.

Since the project plan was revealed in 2007, 11 investors have visited Phu Quoc Island for registring investment applications or providing investment consultancy to casino investors, officials of the Kien Giang Department of Planning and Investment told the media after a meeting between the Kien Giang People's Committee and relevant Government agencies last Friday.

Eight of the prospective investors were from the US and the remaining three from Canada, the Philippines and Hong Kong. Seven of them came in 2008 and waited for the Government to choose a location for the casino project, said Dang Cong Huan, Deputy Chairman of the People's Committee.

A revised master plan for Phu Quoc Island approved by PM Nguyen Tan Dung in May 2010 allows the establishment of a casino on 135ha in Phu Quoc Island District's Bai Thom Commune.

The casino alone will cover an area of 30,000sq. m, enough to accommodate 2,000 slot machines and 200 to 400 table games. The resort will have five or six 5-star hotels with a total of 3,000 rooms, local media said.

Foreign investors participating in the bid to develop the project must prove their financial capacity and pledge to invest at least $4 billion. The duration for the casino operating license will be 30 years.

In 2012, two newcomers registered to invest in casino projects on this location. One of them is a joint venture between local partner Bo Bien Vang Phuong Nam and Environmental Energy Solutions Technology Inc. from the Philippines. The other one is a joint venture between local tourism company Ngoi Sao Bien JSC and Asia Strategies Consulting&Advisory Service Ltd., according to Tuoi Tre (Youth) newspaper.

However, all of them have left.

"Shortly after we say ‘no' to their question on whether Vietnamese citizens will be allowed to gamble in the casino, they turned their back on the project and left," Dang Huy Dong, Deputy Minister for Planning and Investment told Tuoi Tre (Youth) newspaper.

A representative of the Ministry of Culture, Sports and Tourism said that at present, Phu Quoc Island is not the most attractive destination for casino investors. He noted that the US group Sands Las Vegas Corporation chose Ha Noi and HCM City as locations instead of Phu Quoc.

Therefore, special incentives should be given to the island, making it more attractive than other localities to investors.

Huan said the main goal for Phu Quoc is to attract big and experienced investors to make the project a success.

If the province cannot attract such investors, the project should be delayed, rather than granting licenses to small investors who would use the land for other purposes, said Huan.

Dong said his ministry would submit to the Government a draft document on attracting investment into Phu Quoc.

Special treatment

Explaining why the island remains unattractive to investment, Nguyen Phong Quang, deputy director of the South-western Region Steering Committee, said there is currently no land evaluation framework that can be accepted by investors.

The island district also lacks funds to invest in infrastructure development, he said.

Another problem is that the island remains a district affiliated with Kien Giang Province. With that administrative status, they always have to consult provincial authorities before making any major decision.

"That's why I say the island should be given special mechanisms to enable local authorities to stand on their own feet.
"Regarding the opening of a casino on the island, I think it is feasible. The only thing we have to think carefully about is its scope and how to control its operation. We'll learn from the experience of other countries how to select the best option for a casino on Phu Quoc island and then submit our findings to the government to make a final decision."

VietNamNet/VNS