Vietnam’s Ministry of Planning and Investment has put forth an ambitious plan for a $2.2 billion integrated resort and casino in the Van Don Special Economic Zone, nestled in the Quang Ninh Province. 

Vietnam’s Mega Casino Resort Project Nears Approval

The project, set to be completed by the third quarter of 2032 if approved, is a collaboration between the ministry and the Quang Ninh People’s Committee, reported eTurbo News. This initiative, first mentioned by the provincial authority in late 2018, is part of a broader strategy to establish coastal resorts with casino operations. Under the guidelines of Vietnam’s Ministry of Finance, only projects with an investment capital equal to or exceeding $2 billion will be granted a gaming license.

The proposed complex aims to be one of the two casinos in Vietnam permitted to cater to local citizens, a policy established in 2016. The bid for government approval includes plans to initiate the bidding process by the end of 2023, as disclosed by the Quang Ninh People’s Committee in July.

Vietnam’s Ministry of Planning and Investment is optimistic about the potential impact of the project. If given the green light, the resort is expected to generate an average annual after-tax profit of VND8.16 trillion ($336 million), with a break-even point anticipated after 32.8 years of operation. Over the span of 70 years, it is estimated to contribute VND228,000 billion ($9.4 million) to the state budget and provide employment opportunities for approximately 6,000 individuals.

Money Laundering Concerns Hover Over Vietnam’s Casino Project

The proposal, however, comes amidst concerns raised by international officials regarding Vietnam’s ability to address money laundering risks in the casino industry. Although Vietnam implemented an anti-money laundering law in March 2023, the United Nations Office on Drugs and Crime has expressed reservations, stating that the regulatory and enforcement mechanisms in place may not be robust enough to handle the evolving landscape of transnational organized crime.

Despite international alarms, the Ministry of Planning and Investment remains steadfast in its pursuit, emphasizing the socio-economic benefits the integrated resort and casino complex could bring to the region. If Prime Minister Pham Minh Chinh gives the go-ahead, construction could commence as early as next year, with the resort anticipated to be ready for guests by 2032.

In other news, in July Hong Kong’s Cheng family officially assumed control of Vietnam’s Hoiana casino resort, previously managed by the Suncity Group led by jailed Macau tycoon Alvin Chau. The $4 billion joint project with LET Group and VinaCapital includes a casino, golf course, and Cheng-branded hotels. 

The management shift aligns with Macau junket operators exploring Southeast Asia due to stricter regulations at home. Vietnam’s relaxed regulations and rebounding tourism make it an attractive destination. 

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In a significant development in the world of Asian gaming, the billionaire Cheng family from Hong Kong has officially taken over the management of the Hoiana casino resort in Vietnam. The resort, located near the vibrant Vietnamese port city of Da Nang, was formerly operated by the Suncity Group, a business empire led by the now-jailed Macau gambling tycoon, Alvin Chau. 

A Lavish $4B Joint Project by Chow Tai Fook, LET Group, and VinaCapital

The Hoiana resort is a joint venture between Chow Tai Fook, LET Group, and investment management firm VinaCapital. Boasting an impressive array of amenities, the resort includes a sprawling casino with 140 gaming tables and over 350 gambling machines, a luxurious golf course, and opulent hotels carrying the renowned Cheng family brands, New World and Rosewood. Currently, additional facilities are under construction, bringing the total investment in the resort to an estimated $4 billion.

The Cheng family’s takeover of the Hoiana resort comes in the aftermath of Alvin Chau’s legal troubles, leading to his imprisonment in Macau. Chau, who previously ran Macau’s most prominent junket operator, spearheaded an immensely profitable industry that attracted affluent players from mainland China through the provision of private jets, lavish suites, and generous gambling credits. However, the entire sector faced a severe blow following Beijing’s stringent crackdown, citing concerns over capital outflows and potential money laundering.

Following Chau’s fall from grace, Suncity Group Holdings Ltd., the listed unit of his empire, underwent a transformation under the leadership of executive director Andrew Lo. Rebranded as LET Group, the company has since distanced itself from junket operations.

Hoiana Resort’s Management Shift Reflects a Growing Trend

The shift in management at the Hoiana resort aligns with a broader trend among Macau junket operators. Faced with stricter regulations and higher taxes on home soil, many of these operators are actively seeking opportunities in Southeast Asia, with Vietnam standing out as one of the most attractive destinations as reported by Bloomberg. 

Vietnam offers more relaxed regulations and the opportunity to share VIP revenue with casinos, a model that was abandoned in Macau following China’s crackdown. Additionally, since Vietnamese law prohibits local residents from gambling in most facilities, casinos in the country heavily rely on high-rolling foreign players.

Vietnam’s tourism industry is also experiencing a post-pandemic boom, with visitor arrivals bouncing back to 66% of pre-pandemic levels in the first six months of the year. The country’s resilience in attracting tourists is particularly impressive, given that Chinese tourists, who previously comprised nearly one-third of Vietnam’s visitors, are yet to return en masse due to a shortage of international flights.

Beyond Vietnam, the Cheng family‘s foray into the international gaming scene has also extended to Australia, where they have become key investors in the Star Entertainment Group. Collaborating with another Hong Kong-based conglomerate, Far East Consortium International Ltd., they are jointly developing a formidable $3.6 billion gambling resort in Brisbane.

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The company has teamed up with Jade Gaming, a company operating out of the Philippines. This deal is now part of Velvix’s overall strategy to grow its presence in the country’s market, but also expand to Vietnam.

Velvix is seeing the two countries as an important part of its Asian pivot after the company managed to gain a strong footprint in the United States and is likely to continue growing there. An initial product catalog is expected to go live in June, with further expansions to come over the next months.

Commenting on the company’s current plans and successes, Velvix VP Amy Jiang said that the North American success gives the company a strong reason to believe that the same business strategies can be levied in Asia, particularly in the Philippines and Vietnam:

The Asian Pacific region has demonstrated remarkable growth in recent quarters, surpassing even the most optimistic expectations. We strongly believe in the resurgence of Asian gaming and are thrilled to be part of it by launching Velvix in The Philippines and Vietnam.

Velvix VP Amy Jiang

Jiang similarly hailed Jade Gaming and the company’s significance in helping Velvix reach new audiences and establish a robust product footprint that will be useful to the company’s grander strategy in these Asian markets and possibly others.

Velvix is serious about the future of its products and gaming machines, with the company already operating a research and development office in Sydney, Australia. Velvix focuses on different products, investing in both Class III slot machine titles that come as linked progressive and standalone game variations.

Innovative Developer Committed to Expanding Its Global Presence

For the time being, Velvix remains an up-and-coming company that is focused on expanding its reach across new jurisdictions rapidly. The company attended the IGA 2023 show in San Diego, California, with the team on the ground and looking to analyze and secure new business opportunities.

The company has also expanded its fleet of games at a good clip, announcing innovative products such as a Keno-themed slot back in March. Velvix holds certifications from BMM and international regulators, demonstrating its commitment to creating products that meet industry standards at the highest level.  

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