GGRAsia – Vietnam ministry gets casino biz permit powers: report

Vietnam ministry gets casino biz permit powers: report

May 31, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

Vietnam’s Ministry of Finance has been given authority by the country’s government to grant business licences for “casino and gaming services” according to a Tuesday report by the online news portal VietnamNet.

The report didn’t specify if such licences would cover any gaming venues permitted to join a three-year government pilot scheme to allow economically qualified locals to gamble.

Under Vietnam’s administrative system, government decrees set out general policy. According to various media reports – published in the aftermath of a casino business decree in January – follow-up regulations are required to flesh out the specifics of a policy.

The 50-page decree covering Vietnam casino business – known officially as “Decree 03/2017/ND-CP” and published in late January; and which came into effect in mid-March – attracted headlines around the world because of a provision that locals might be able to gamble in certain venues under a three-year trial scheme.

Since then, there have been contradictory reports about how that might work in practice. Some accounts have suggested locals would only be allowed in purpose-built, so-called integrated resorts in certain zones located in parts of the country that have been targeted by the central government for a fresh round of economic development. Further reports have suggested no such geographical restrictions would apply.

What is clear – according to the latest article from VietnamNet – is that under the decree, eligible enterprises wishing to invest and operate in services, tourism and entertainment businesses that have casinos attached, must invest a minimum capital of US$2 billion and submit plans to manage what the report termed “the negative impacts of casino operations”.

An article in the International Financial Law Review – published on April 26 – made mention of the US$2-billion requirement, but added that as of that date, “no specific guidance has been given on this”.

That publication further stated: “Aside from an investment registration certificate (or investment policy decision), the investment project in an integrated zone is also required to have a certificate for casino business for satisfaction of conditions issued by the Ministry of Finance”.