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Deputy Prime Minister Tran Hong Ha has officially signed off on the Van Don integrated resort and casino development in Quang Ninh province, and the numbers behind this project are staggering. We’re talking about a $2 billion investment that’s going to unfold over the next nine years, which is the kind of commitment that suggests Vietnam is serious about positioning itself as a major player in the regional gaming market.
The approval came through on June 27th, according to VN Express, and it covers a 70-year license for what will essentially be a resort city built from scratch. The scope of this thing is massive—more than 244 hectares of land, with 182 hectares dedicated to the core functions like the casino, hotels, luxury villas, tourism services, parks, and water features. That’s bigger than many actual cities, and it’s all going to be concentrated in Van Yen commune within the Van Don Economic Zone.
Environmental Considerations Built Into the Plan
There are 62 hectares of forest land that are completely off-limits for development, 38 hectares of protected forest, and nearly 24 hectares of production forest. Those zones must remain untouched under forestry law, and this indicates an attempt to compensate development with environmental conservation and protection.
The three-phased construction timeline over the course of 9 years implies that they’re taking a measured approach rather than attempting to build the entire facility at one time.
The Numbers That Matter
Officials estimate approximately $326 million in annual revenue when all’s in operation, with state coffers bringing in over $9.6 billion throughout the 70-year life of the operation.
The project will generate about 6,000 jobs, and that is already a huge economic boost to the area.
The Local Access Question That Won’t Go Away
Although the casino license was granted, Vietnamese residents are still not legally allowed to gamble there. The approval is still pending, and it’s subject to what they’re calling “further legal approvals,” which is government speak for “we haven’t figured this out yet.”
The Ministry of Finance has apparently resubmitted a proposal to include local players under the existing pilot program, but final clearance hasn’t been given.
Government Oversight and Next Steps
The approval comes with some specific requirements for how this whole thing moves forward. Quang Ninh’s provincial government has been tasked with selecting the actual investor through a bidding process, which means no one knows who’s going to build and operate this resort. They also have to monitor the capital contribution and financing stages, which suggests the government wants to make sure whoever gets selected can actually deliver on their promises.
The local economic zone management board has additional responsibilities, too. They need to prepare housing plans and social infrastructure for the project’s workforce, plus reserve land for cultural and sports facilities to serve both residents and tourists.
Industry Perspective on Vietnam’s Gaming Evolution
Tim Nguyen from Fortuna Investments told AGB earlier this month that pushing forward the Van Don integrated resort represents a positive signal for Vietnam’s developing gaming policy. The reactivation of this project, especially with the possibility of extending local entry permissions, suggests the country is moving toward a more commercially viable gaming sector.
Whether this project succeeds will probably depend on how Vietnam can solve the local access issue and establish a regulatory system that benefits international tourists as well as locals. At stake are $2 billion and 70 years, so a lot hangs on getting these things right.
Source: Asia Gaming Brief (AGB)
