VietNamNet Bridge – Some say that casinos could potentially make up five percent of Vietnam’s GDP and create 30,000-50,000 jobs, but will the new proposal to allow local citizens to play at casinos really be that lucrative?

In recent days, investors have leaped for joy about the Ministry of Finance’s proposal to allow Vietnamese to go to casinos as Vietnamese gamblers are believed to be the main source of income for casinos.

An analyst said that the Vietnamese admission to casinos would help turn Vietnam into a regional casino center which could bring annual revenue of $3 billion, which is equivalent to half of Singapore’s casino revenue in 2013.

The high revenue from the casinos in Singapore shows that money is to be made.

Over the last three years of developing casinos in Singapore with the investment capital of $9 billion, the number of travelers to the country has increased sharply by 50 percent, from 10-11 million travelers to 17 million.

Colin Pine, general director of Ho Tram Project Company Ltd, a resort project with a casino, was delighted to hear the news that Vietnam would allow Vietnamese gamblers to go to casinos and that the government would create a clear legal framework for casinos.

He said investors will not inject money into investment projects unless they can have sufficient information about the market and policies so as to draw up their business strategies.

Businesspeople expect good revenue from Vietnamese gamblers, saying that casinos in Vietnam will be less competitive in the region if they do not admit Vietnamese.

The analyst commented that big investors in other countries are waiting to hear the final decision from the government on Vietnamese admission to casinos, which is expected to bring multi-billion dollars to Vietnam.

Nguyen Duc Huong, deputy chair of Lienvietpostbank, a commercial bank, noted that Vietnam has been eyed by big casino developers such as Las Vegas Sands, Genting Bhd, Nagacorp and Penn National Gaming for years.

Huong said casinos could make up 5 percent of the country’s GDP.

Meanwhile, the State would be able to collect tax from casinos, estimated at nearly $1 billion a year, which is within reach. Currently, Vietnam loses $800 million in tax from the Vietnamese who go to Cambodia to gamble every year, according to Ha Ton Vinh, an expert.

However, some other experts warned that while Vietnam can earn big benefits from casinos, it would also have to pay a heavy price for them.

Nguyen Mai, a renowned economist, pointed out that Singapore, though taking drastic measures to control casinos, have been facing many social problems.

Ksor Phuoc, a National Assembly’s Deputy, also warned that casinos would not be as lucrative as people think and that they may bring more harm than good.

Pham Huyen – Tran Thuy