Sun Group will invest to construct a tourism complex with casino in Van Don of which total area is 2.500ha and total capital is more than 2 billion dollars including 312.5 million dollars from investors.
The story about casino business in Vietnam is again the question of the hour after the official information in the draft Special Administrative-economic Units Development ( Economic Special Regions for short) shows that large-scale casino projects will be built and developed inside the three economic special regions: Van Don, Bac Van Phong and Phu Quoc. Meanwhile, there are few changes in policies of Da Nang casino project.
In Van Don, Sun Group will invest to construct a tourism complex with casino in Van Don of which total area is 2.500ha and total capital is more than 2 billion dollars including 312.5 million dollars from investors.
According to issued investment certificates, the project will be implemented in 50 years; however, Sungroup proposed increasing the length to 70 years.
Van Don high-standard tourism-resort-entertainment complex is a combination of residential area, convention center, hotels, casinos, golf courses, … and will be built in the island of Cai Bau and Tra Ngo.
The more-than-2-billion-dollar would be raised primarily from 2 sources: contributed capital from Van Don Sun Joint-Stock Company (owned by Sun Group) for about 7.125 thousand billion VND which is equivalent to 312.5 million dollars and accounts for 15% of the total investment.
The rest of the capital (about 40.356,9 billion VND) will be borrowed from the Vietnam Joint Stock Commercial Bank for Industry and Trade ( Viettinbank) – Hanoi Branch from the second quarter of 2017 to the last quarter of 2021.
The project is anticipated to start the first phase from the third quarter of 2017 to the last quarter of 2018. Between the third quarter of 2019 and the last quarter of 2021, the second phase will be finished and the first phase of the project will be activated since the first quarter of 2019 before putting the whole project into action.
Perspective of the complex with casino in Van Don, Quang Ninh
Image: Quang Ninh newspapers
In Phu Quoc, in the statement on the submission of the establishment of “special economic zone”, the total floor area is 30.000 m2 with 200-400 tables, 2000 gaming machines, reference centers, five-star hotel containing 3000 rooms.
Relating to this project, in early 2015, Ministry of Construction submitted a written opinion to Prime Minister to move the location of casino in Phu Quoc from Bai Da hamlet, Bai Thom village to the adjoining resort named Vinpearl Phu Quoc owned by Sungroup.
Casinos in Vietnam
Source: SSI/World Casino directory/website casino
After the relocation, Vingroup started to construct at a breakneck pace and at this point, the project is ready to be activated. In the recent meeting with the Prime Minister, Kien Giang People’s Committee suggested to allow Vietnamese people come to these casinos.
In the Bac Van Phong economic area (Khanh Hoa), a 44.000-billion-VND casino project is said to be legally built; however, there is little information about the mega project.
Casino will be entitled to tax incentives
Along with the policy to allow Vietnamese people to come to casinos in special economic zones, the draft of the law of Special Administrative-economic Units also provides the information about tax incentives to casino projects.
Concretely, this law regulates that casino business and video games including jackpot machines, slot machines and the others will be entitled excise tax rates (10%) during 10 years instead of 35% now.
After 10 years, these services apply excise tax rates following the regulations of the Law on Excise Tax specified cases.