Vietnam Overseas

Local authorities have received a lot of proposals from investors to develop casinos on their several-billion-dollar resorts. However, the government of Vietnam maintains its consistent standpoint that it does not encourage casino business.

Earlier this year, the HCM City People’s Committee, at a conference discussing issues to develop the city’s tourism, mentioned a plan to call for investment into an entertainment-tourism complex on Binh Quoi-Thanh Da peninsula in Binh Thanh district, which was designed to consist of a hotel, restaurant, water-based entertainment areas, and casino.

In Dong Thap province, the Thai Binh Hotel and Housing Development Company Ltd is also planning to invest in a hotel-casino complex at the Dinh Ba international border gate.

Binh Thuan provincial authorities have received a proposal from Cascadia Home Products Asia Ltd on building and developing a high-grade resort, which consists of a casino in Cu Lao Cau, Tuy Phong district.

Meanwhile, investment brokers say that many foreign investors have sent word, expressing their desire to make investment in big tourism-entertainment complexes, which include casinos. Big entertainment service groups in the world always consider casinos as a main investment item in their projects, in order to attract rich clients, develop luxury services and maximize profit.

An investor (Rockingham Asset Management) from the US is trying to lobby for a project on a $2bil resort with a casino on Phu Quoc Island. Another investor, through an investment promotion company, is planning to develop a high-grade tourism project at the Lao Bao-Quang Tri border gate, which is expected to cost $3bil, including the expenses for a casino.

The Cai Gia-Cat Ba urban area, which has called for investment recently, is also catching the eyes of several investors, who are seeking to develop tourism projects with casinos.

To all these proposals, the government has given only one answer: the building and development of casinos must be implemented in accordance with Notice No 96 dated May 4, 2007 by the Government Office. The notice says that Vietnam will consider granting licenses to build casinos in tourism-entertainment complexes which have the investment capital of $4bil and higher.

Casino jackpot and gambling are currently listed as ’sensitive projects’ which are not encouraged in Vietnam. Casino development has been carried out on a trial basis so far, and casinos all are located in isolated areas and reserved for foreigners only.

In fact, Vietnam does not have any legal documents on casino operations. The licensing of casino projects has been implemented in individual cases and decided upon by the Prime Minister. Currently, gambling business management is being carried out in accordance with Decision No 32/2003 dated February 27, 2003. However, the decision is being amended and stricter regulations will be set up.

There are now four operational casinos in Vietnam, one in Hai Phong, two in Quang Ninh (Loi Lai and Hoang Gia), and one in Lao Cai. The four all are small scale and are open to foreigners only. Licenses on gambling business have been granted to several hotels, while licenses on horse and dog betting have been given to projects in HCM City and Vung Tau.

As requested by the government, the Ministry of Planning and Investment (MPI) is compiling a project on casino development and management and amending Decision No 32/2003 dated February 27, 2003. Meanwhile, the Ministry of Finance (MOF) has been assigned to compile the project on betting business development and management.

The first draft of casino project has been submitted to the government for consideration. The completed version of the draft will be submitted again to the government, which will then be submitted to the Communist Party’s Politburo.

MPI and MOF both said that the government kept a skeptical viewpoint on the issue, which is considered very sensitive. Casino development will only be allowed when casinos are located in isolated areas, and open only for foreigners for easier control.

Regarding the project on betting games, MOF plans to submit it to the government in the fourth quarter of the year. The ministry said that it had to thoroughly consider the possible impact of the project, especially the social impacts. In all cases, the government will maintain very tight control over gambling activities.

Posted VietNamNet Bridge, September 10, 2007, by Phuoc Ha

1. General introduction

The so-called five star hotel complex including five-star hotel, office for lease and high standard apartments is in the series of projects “Petrovietnam Tower and Five star Hotel -office and high standard apartments, Commercial centre & Entertainment park located on the landsite of 23,7 hectare.

• The five-star hotel complex is located in the area of 3,7 hectare and total investment valued at approximately . U$300 million and consists of:
  • 500 rooms five- star hotel
  • around 700 units high standard apartments (133,000 sqm as GFA)
  • office building level A: around 30,000 sqm as GFA
• The Petrovietnam Tower, Commercial centre, Entertainment park project locates in the area of 20 hectare and total investment valued at aprx. U$ 1,30 billion and consists of:
  • Petrovietnam Tower which is 1,000 feet high ( estimated 88 - 108 storey)to use as office for lease, banking, trading etc
  • Commercial centre
  • Entertainment Park
  • Underground car parks, shopping mall
• Source of investment capital: Petrovietnam’s investment & development fund and from other investors

2. Project site

• Five-star hotel complex is located at X3, CV4.3 Southern East of Hanoi City, Me Tri commune, Tu Liem District, Hanoi, Vietnam
• Petrovietnam Tower, Commercial Centre and Entertainment park project locates at X1, X2 CV4.3 Southern East of Hanoi City, Me Tri commune, Tu Liem District, Hanoi, Vietnam

3. Phasing of Investment

The five-star hotel complex project is to carry out firstly so that can be completed by 2010 to celebrate 1000 years of Thang Long-Hanoi Anniversary. In addition, Petrovietnam Tower, Commercial Centre and Entertainment park project will be carried out little later and finished by 2012 as scheduled

4. Scope of work

Selected organizations, individuals passing the short-listed period will take over the following -works:

• Make a 1/500 master plan for five-star hotel complex project (for the land site of 3,7 hectare)
• Make concept design for the buildings of the project

Notes:

• Master plan and design options of the five- star hotel complex project (3,7ha) must be studied and reviewed in consideration of the 20 ha project (Petrovietnam Tower, Commercial Centre and Entertainment park) generally
• The detailed Master Plan 1/500 for the total area 23,7 hectare will be set up later and it will include the master plan of 3,7 ha hotel project
• Consultant won the competition and has option selected will be invited for negotiation for the contract on making feasibility study and further design in next steps subject to its capability

5. Documents of Expressing Interest

Consultants are to prepare the followings:

• Application for Participation of Competition signed by authorized person
• Copied of Legal documents related to its business operation
• Prequalification documents showing its capability and experience
• Copied of medals / award certificates (if any)
• Summary of key persons to be involved in the project
• Financial statements in 2004, 2005, 2006 (if any)

Documents of Expressing Interest must be put in an envelope and on its cover written: Documents of Expressing Interest for Design Competition of the five star hotel complex.

Documents of Expressing Interest must be made in Vietnamese for local and in English for oversea consultants.

The feasibility study of the Lach Huyen deep water port in the north of Hai Phong city has been approved by the Ministry of Transport.

Minister of Transport Ho Nghia Dung said that the study would be submitted to the Government in some days.

The Lach Huyen deep water port project, invested in by the Vietnam Shipping Lines (Vinalines), has the total investment capital of VND27tril, or $1.6bil. It is expected to become the gate to the world and the big transit port in the northern part of the country.

According to the pre-feasibility study, the deep water port will be able to receive 60-80,000 tons vessels. Once operational, the port is expected to see 50-60mil tones of goods going through every year.

Hai Phong city authorities are calling for both domestic and foreign investment into the very important project.

According to Duong Chi Dung, Chief Executive Officer of Vinalines, the operation of the Lach Huyen port will help Hai Phong become an important place for goods transition. Goods from the western areas of China to other places would have the itinerary which is 800 km shorter if they are transited at Lach Huyen port rather than at the nearest Chinese port.

In related news, the Government has released the list of very important investment projects on infrastructure and transport. In the coming time, a series of projects will be kicked off.

These include the building of several stretches of road on the north-south highway (Hanoi – HCM City – Can Tho), and stretches of roads belonging to the Belt No 1 and Vietnam – China economic belt, upgrading the stretches of road on Highway No 1 in order to improve circulation capacity and minimize traffic jams.

Regarding railway projects, it is expected that the current north-south railway will be modernized, the Yen Vien – Lao Cai route will be upgraded. Meanwhile, the projects on building the international transit ports in Van Phong bay in the central province of Khanh Hoa and Lach Huyen port in the northern province of Hai Phong will be the top priority projects to serve sea transports.

As for air transport projects, Vietnam will build a modern terminal at Da Nang international airport and T2 terminal at Noi Bai airport in Hanoi, and build Duong To and Phu Quoc airports.

The Government has also urged the acceleration of the preparation work for the investment in the international airport in Long Thanh in the southern province of Dong Nai, which is hoped will replace current Tan Son Nhat airport in the future.

The Prime Minister has determined that the total capital needed to develop the groups of infrastructure projects is $67.570bil, of which, the sum of $4.418bil has been arranged.

Posted TBKTSG, April 19, 2007, VietNamNet Bridge

The death toll from the collapse of a bridge under construction in southern Vietnam has risen to at least 49, a provincial official said Sunday, with three other people still missing. The official, deputy head of Can Tho province’s people’s committee, said a further 82 people were injured in Wednesday’s accident. “We are continuing our efforts to try to find the bodies of the three who are missing,” he added, but indicated there was little hope of finding anyone alive. “The official cause of the accident is still unknown but the investigators have stepped up their work.” Initial reports had put the death toll at up to 52, and then it was lowered to 46. On Saturday, officials had put it at 47. Construction of the 300-million-dollar bridge, which was largely funded by the Japanese government, was to have been finished next year. But part of the 16-kilometre (10-mile) bridge across the Hau river between Can Tho and a neighboring province collapsed early Wednesday in the nation’s worst ever such accident. Authorities have launched an inquiry and raised the possibility that the structure had been weakened by recent heavy rains.

AFP - Sunday, September 30