FLC Group Joint-stock Co., a real estate company co-founded by billionaire Trinh Van Quyet, has confirmed that they have been given the ‘OK’ on a $2 billion casino resort. In hopes of attracting both tourists and domestic gamblers, FLC group will be building a five-star hotel, a convention center and a golf course on almost 10,000 acres.
According to an email statement FLC Faros Van Don, a faction of FLC Group, was given permission to invest $2 billion in a casino resort that will be in Quang Ninh. The resort will be located on the islands of Ngoc Vung and Van Canh.
New Gambling Laws in Vietnam
At the start of 2017 Vietnamese government announced that it would allow citizens over 21 years old to play in local casinos, starting in march, as long as they have a monthly income of at least VND10, which is roughly $445. What is being dubbed the “three-year pilot program” will allow Vietnamese residents to gamble for the first time in the country at two select casinos; one in Quang Ninh province and the other on Phu Quoc island. At the time of the announcement both locations were still in the process of development.
As gambling expands across the continent of Asia, overseas gaming companies have frequently turned to Vietnam for possible expansion. Major cities like Ho Chi Minh City and Hanoi have been reported as targeted prospects for huge gaming companies like Las Vegas Sands Corp. Other gaming investors have begun working on a project in Quang Nam that is reported to be a $4 billion casino.
Vietnam currently has seven operating casinos throughout the country but until the announcement of the three-year pilot program none of the casinos have been available to citizens of Vietnam. All of the existing casinos are specifically for tourists and therefore are located in major tourist destinations, such as Quang Ninh. Every year, citizens of Vietnam travel to nearby countries to gamble and spend an estimated $800 million. The three-year pilot program will hopefully provide the Vietnamese government with insight on how the legalization of gambling in the country could affect financials. All of the proposed gambling initiatives are an attempt to encourage citizens to spend the money they have been spending outside the country, within the country to help bolster the economy.
Other Gambling Initiatives for Vietnam
The three-year pilot program is just one of the many gambling ideas that Vietnamese leaders have been working on in hopes of slowing the increasing budget problems. Another gambling initiative that was carried out last year has been dubbed the “American-style” lottery. Vietnam will also go through the process of legalizing nationwide bets on horse and dog races, and also international soccer matches.
FLC saw the effect of their investment immediately as their stock rose as much as 5.1 percent following the announcement of their decision to invest in the resort. Shares of FLC are headed towards a record year as they have experienced their biggest yearly advance since 2012. Quyet recently shared that FLC is working on deal which could raise as much as $200 million to help fund projects like the resort in Quang Ninh.