The transformation of Vietnam’s casino industry

Frank Chen April 18, 2024

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The transformation of Vietnam’s casino industry

Vietnam’s casino industry has been undergoing major adjustments recently; the country currently has three top integrated resorts (IR): Hoiana, The Grand Ho Tram, and Corona. Each of these three seaside resorts has its own selling point. Among them, Corona on Phu Quoc Island, is the only land-based casino that allows players to gamble without foreign passports, allowing the local casino industry to remain profitable despite the scarcity of tourists from mainland China. Therefore, whether the three top IRs in the future will allow local people to invest in related industries will have a certain relationship. The article focuses on Vietnamese resort Hoiana to explore how Vietnam’s local IR market adjusted after China’s policy changes.

The opening of Hoiana Resort and the challenges of the pandemic

After the successful opening of Vietnam’s integrated resort Hoiana in 2020, it was affected by the Covid-19. Moreover, in 2021, the Macau authorities arrested Suncity Group Chairman Alvin Chau. Subsequently, Hoiana terminated this partner’s shareholding and take over the related game business because Chau holds 34% of the company’s shares, which has a certain degree of impact on operations.

The impact of China’s policies on overseas gaming behaviour

In recent years, China’s policies have had a profound impact on overseas gambling. Among them, the Chinese government’s supervision of overseas gambling and it has an impact on Vietnam’s casino industry. This impact is not only reflected in the casino’s operating model but also the casino’s business structure and market positioning. Some Chinese wealthy people have invested in projects in Vietnam in the past, and as investors prepare for the situation, the shareholder structure of local casinos in Vietnam has changed.

Hong Kong tycoons and VinaCapital’s investments

Currently, Hoiana’s largest shareholder is Hong Kong billionaire Henry Cheng and his family, whose business empire includes New World Development Group, Chow Tai Fook Jewellery Company Limited, and Rosewood Hotel Group. Vietnam-focused investment management firm VinaCapital also has investments in Hoiana and The Grand Ho Tram.

Hoiana resort facilities and future developments

The first phase of Hoiana is worth US$1.3 billion (€1.2 billion) and includes four hotels, a golf course, and 20 food and beverage outlets along four kilometres of coastline. This is a superb resort, perfect for a tropical holiday. Among them, casinos all use Vietnamese dong as the main transaction currency, which allows tourists holding international passports to import funds into Vietnam.

In addition, Hoi An Ancient Town, about 15 minutes’ drive from Hoiana, has just been listed as a World Heritage Site by the United Nations. Its well-preserved port area illustrates the cultural scenery of the 1400s.

An hour’s drive further out is the world-class heritage My Son Sanctuary. The scenery in this area features traditional Hindu culture and carvings of related gods. In addition to on-site facilities, it also gives consumers plenty of reasons to visit.

Overall, Vietnam’s casino industry is undergoing significant changes, and the future is full of possibilities. How Vietnam’s casino industry will develop as the ownership structure changes remains a question worth watching. At present, it relies on rich support from world cultural heritage to recruit many tourists.