Analysts speculate whether Da Nang could become ‘the next Macau’

Da Nang

Investment analysts have said that Vietnam could become a major Southeast Asian casino hub if it revises the laws prohibiting locals from gambling. The country’s seven luxury casinos are currently only permitted to serve overseas visitors, but according to The Malaysian Star, an advisor to Hanoi on the gaming industry has said that the restriction may be debated next year.
One of Vietnam’s licensed casinos, Crown International Games Club, is owned by Chinese businessman Hui Kong and is already an established destination for many Chinese tourists at its Da Nang resort.
Chinese tourists form the biggest client base for Vietnam’s casino industry, whose gaming operators work with junkets to help VIP gamers circumvent China’s currency controls, similar to Macau.
Rocked by complications in the VIP sector this year, junket operators may soon turn their gaze to Da Nang. The competition coincides with Macau’s ailing gaming fortunes, as gambling revenues show little sign of recovery.
In Da Nang, unconfirmed reports suggest that Crown casino has reached USD3 billion in its monthly turnover over the past year – a figure which the Malaysian Star notes is at least double that of larger rivals in the region.
“There is no other destination I know where the junket and casino [operators] organize 25 charter flights a week from China,” said Ben Lee, managing partner at Asian gaming consultancy IGamiX.
Investment organizations like Hong Kong-based Chow Tai Fook Enterprises and VinaCapital are also looking to Vietnam, and are building a casino in Quang Nam province which is expected to open by 2018.
Da Nang, which is also conveniently located for mainland tourists, may become a serious rival for Macau in coming years – and perhaps not just in the gaming industry.
The director of Da Nang’s tourism promotion office said: “We are positioning ourselves as a leisure, beach, meeting and conferencing destination.”  Staff reporter