VinaCapital Partners with Chow Tai Fook Enterprises on $4-Billion Casino
Vietnamese investment company VinaCapital announced that it would work together with Hong Kong-based giant Chow Tai Fook Enterprises Ltd. on the completion of a stalled $4-billion project for the construction of the so-called Nam Hoi An integrated gambling resort in Vietnam’s province of Quang Nam. คาสิโนออนไลน์
Under the terms of the deal, VinaLand Ltd., listed on the Alternative Investment Market of the London Stock Exchange, is to be a key shareholder in the multi-billion project. The entity has divested its shares to Chow Tai Fook’s unit Gold Yield Enterprises. It said that the transaction would generate a total of $10.5 million in net proceeds for VinaLand.
VinaCapital noted in a statement on the matter that the transfer of shares was part of their strategy to dispose of certain assets by the current term’s end. The investment company also pointed out that “given the complexity of the project”, the purchaser has asked for VinaCapital to remain a partner in the project.
The Vietnamese company was to work together with Malaysian conglomerate Genting Berhad on the ambitious plan. However, the latter withdrew from the project back in 2012 citing the gambling regulations in the country as the reason for its decision. At present, only foreigners can gamble at Vietnam’s casinos. Since then, VinaCapital has been looking for a partner for the large-scale development.
Local media reported that work on Phase One of the project is about to start early next year. The first phase is expected to include luxury apartments and villas, a golf course, an amusement park, etc. It was valued at $500 million.
This would not be Chow Tai Fook’s first foray in Vietnam. The Hong Kong-headquartered conglomerate runs two hotels within the country’s borders – the Renaissance Riverside and the New World, both located, both in Ho Chi Minh City.
As mentioned above, Vietnam’s citizens are not allowed to gamble at local casinos. Last year, it was reported that the country’s government considered the opportunity for certain changes to be implemented in the current regulations. However, no such changes have taken place or at least not for now.
According to industry analysts, Vietnam is particularly attractive to well-to-do Chinese gambling customers who contribute the most to the overall gambling revenue in the Asia-Pacific region. Experts also noted that if the country eases its current laws, casinos may annually generate more than $3 billion.