VietNamNet Bridge - After many failures with racecourse projects, Hanoi is again considering developing a formula 1 race course and allowing betting in order to increase city revenue and put the business under control.

Sources said that at a working session with Deputy Prime Minister Truong Hoa Binh recently, Hanoi’s leaders asked the government to issue regulations on the business conditions for 16 business fields mentioned in Appendix 4 of the Enterprise Law.

The leaders said the city has called for investment into the F1 race course project in the city. One foreign group has shown its interest in the project.

“You may see that lottery is an important source of revenue for many Mekong Delta provinces. I know a province which has GDP value of VND1.3 trillion, and VND980 billion from lottery,” he said.

“So, it would better to allow a horse racetrack and betting and put the activities under control, rather than prohibiting the business and failing to collect tax,” he said. 

After many failures with racecourse projects, Hanoi is again considering developing a formula 1 race course and allowing betting in order to increase city revenue and put the business under control.

In related news, the government has recently licensed a company to provide computerized lottery throughout the country.

Hanoi’s Mayor Nguyen Duc Chung commented that without amusement parks and centers for entertainment activities, Hanoi would be less attractive to travelers.

However, according to Kieu Dinh Thu, deputy head of the Government Office, there were still many problems that hindered implementation. 

First, the decree on casino management will have to be submitted to the Communist Party’s Politburo because it is ‘sensitive’. Second, the government decree on the conditions for betting services will also have to wait for a decision from the National Assembly’s Steering Committee. 

In general, casino and betting in Vietnam are listed as ‘sensitive’ business fields. Investors have lobbied legislators to legalize gambling activities, but they have failed so far.

In the past, Hanoi planned to license a course in Soc Son district, expected to be the second largest in Vietnam after Phu Tho Course in the south.

However, the British partner in late 2007 unexpectedly decided to quit the project, because the betting on horse racing in Vietnam was considered legal only if it was made ‘within the fence’, i.e. betting of all kinds could only be carried out within the race course.

Hanoi reportedly has found a new partner from the US. However, to date, there has been no further information about the project.

Tien Phong quoted sources as reporting that the Soc Son race course project has not been approved though it was submitted to the Prime Minister three times.

Tien Phong