Profit generated from the group’s previous projects in Vietnam would be utilized for the race-track complex project.

Hanoi People’s Council Chairwoman Nguyen Thi Bich Ngoc (R) and Charmvit Group's President Lee Daa Bong on February 21.

South Korea’s Charmvit Group has been gathering necessary conditions for construction of a race-track complex in Hanoi, and expects to receive supports from local government for early implementation, said the Group’s President Lee Daa Bong. 

With strong support from the government, Charmvit Group hopes to soon receive the investment license for the project, said Lee in a meeting with Hanoi People’s Council Chairwoman Nguyen Thi Bich Ngoc on February 21. 

Lee added that profit generated from the group’s previous projects in Vietnam would be utilized for the race-track complex project. 

At the meeting, Ngoc said the project’s proposal has been submitted to Prime Minister Nguyen Xuan Phuc for approval. As the project is the first of its kind in Vietnam, government agencies have been cautious during the approval process.

Ngoc said Hanoi is willing to support and create favorable conditions for Charmvit to do business in the city. 

Last December, Prime Minister Nguyen Xuan Phuc approved the US$420-million racetrack complex in Hanoi after agreeing to include the project into the capital city’s socio-economic development master plan until 2020, with vision to 2030. 

The proposed racetrack complex, which offers horse betting, would be located in Soc Son district and cover an area of over 100 hectares. 

Hanoi expected to collect a corporate tax amount of US$40 million – US$50 million and special consumption tax of US$100 – 200 million per year once the racetrack complex becomes operational around 2021. 

Once set in motion, the project would directly employ 5,000 people and other 20,000 – 25,000 part-time employees, generating a steady revenue flow for Hanoi budget. 

In June 2018, Vietnam’s National Assembly approved the revised Law on Physical Training and Sports, which allows locals to wager on a variety of sports events. The revised law is set to come into effect in 2019.

Sports betting was considered illegal in Vietnam, which made many local bettors turn to international gambling websites. The illegal betting market in Vietnam is estimated to worth US$1 - US$1.5 billion on an annual basis.

The law is seen as the government's effort to prevent money from flowing out of the country. 

Hanoitimes