US$1 billion in profit per annum from a betting business licensed in Vietnam, has surprised many people. In the mean time, in other Southeast Asian countries, billions of US dollars have been invested in building casinos.
This proves a significant change in awareness of the countries on wagering and gambling, which were considered as national disaster in the past, have become a profitable business. What about Vietnam?
A profitable business?
Asia has become a promising land of casinos and gambling entertainment areas. This fact is unpleasant in a country such as Vietnam, which has been impacted by Confucius and Buddhism. The Philippines now has 16 State-run casinos, earning over US$350 million per annum. Cambodia has 23 casinos, two of which, Bavet and Le Macau, are exclusive for Vietnamese people. Singapore is planning to build more casinos.
Vietnam, a country which has accepted teh lottery as a legal business, allowed the piloting of opening a casino in 1992, licensing the Do Son Casino. From then on, many other betting and wagering entertainment activities were allowed and prohibited, and then allowed at the horse race track in Ho Chi Minh City and the entertainment area of Loi Lai in Mong Cai, Quang Ninh. The Do Son Casino alone has seen a record high growth rate of between 20 and 25 per cent per annum since 1994. Each year, the Do Son Casino’s revenues reach over VND 100 billion and its contribution to Haiphong city’s budget of US$30 billion. Notably, the casino serves foreigners only.
Apart from the Do Son Casino, many casino running firms in the world have applied for licences in Vietnam and the Vietnamese Government has refused many times, guiding that the casino and wagering business is not allowed in Vietnam. Casinos are clearly a profitable business and are not encouraged in Vietnam.
Should Vietnam live with casinos?
According to reports by the General Department of Police, unofficial gambling in Vietnam has a large scale. The amount the Vietnamese people spend on gambling and betting can reach hundreds of billions of Vietnam dong per day. Apart from revenues from lottery under the management of the State, 98 per cent of revenues from unofficial gambling and betting violate the law.
Tran Thanh An, permanent deputy director of the Haiphong International Tourism Joint stock Company, said that enterprises which run casinos, wagering and betting business, were supervised closely by authorised agencies and viewed with great suspicion by the public. Also according to An, in Vietnam a group of high income earners, who do not know where to spend their money, has emerged. In the meantime, the betting demand of Vietnamese people is very high and there is not yet any service to meet the demand. As a result, local people are involved in unofficial betting and gambling activities while high income earners go abroad for gambling.
Should Vietnam develop a casino and wagering business? It is reported that the Ministry of Finance has drafted a new decree, in which licences will be granted to some kinds of lottery, wagering and betting businesses. From a law building point of view, there has been a demand to legalise the business. However, a legal corridor, strong enough to adjust and manage activities of enterprises in the industry, is needed. An said that the business should be expanded but open and transparent management mechanisms were needed, so the State would be able to control the sensitive business model. Support should be provided for management agencies to select and control those who were involved in the business.
P.V
Vietnamese
