Developers Bet on Red: Casino Planned for Vietnam

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Developers Bet on Red Casino Planned for Vietnam

• Adrien Daly
• Jason Johnson
• Samantha Gonzalez

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Vietnams Economy

• 67 aged 15-64
• 20 population below poverty line
• GDP 3,100 (upper middle income)
• Member of AFTA (ASEAN Free Trade Area)
• Bilateral Trade Agreement with U.S.
• Joined WTO in 2007

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Summary

• International group of developers
• Coast Development Ltd. of Toronto
• Fontainebleau Resorts (U.S. resort
• developer).
• Paul Steelman (Las Vegas-based
• casino architect) to open gambling hotspot in
  Vietnam.
• Proposal 4 billion resort and casino situated
  on remote beach on South China Sea.
• The project, named Ho Tram, would be situated a
  two hour drive east of Ho Chi Minh City.
• Currently awaiting approval from the Prime
  Ministers office.

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Project Ho Tram

• 15 sectors to include
• 10 restaurants
• 8-acre swimming pool
• 1,200 hotel rooms
• Greg Norman International golf courses
• 80,000 sq. ft. Las Vegas-style table games casino
• Disney and Disneyland

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Ho Tram Promotion and Differentiation

• Developers want to bring the best of America to
  Vietnam.
• Theme The Lost City of Vietnam
• Asian Coast organized a tour of gambling sites in
  London, the Bahamas and the U.S. in order to
  persuade government officials.
• 15 sectors will appeal to just about anyone.

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Business Implications and Barriers to Entry

• Vietnam is a communist country.
• Gambling is illegal in all forms,
  except in licensed premises.
• The country's lack of a legalized
  and regulated gambling system has
  discouraged major U.S. operators from moving into
  the country.
• U.S. state casino regulatory agencies must
  approve foreign casino projects if American
  companies operate gambling halls in their
  jurisdictions.

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Business Implications

• Asian nations are exploring casinos as a way to
  generate new revenue.
• There are a handful of small casinos in northern
  Vietnam, but gambling is still an emerging
  industry there.
• Only handful of small casinos in northern
  Vietnam.
• Gambling is a growing industry in Vietnam.
• National pastime.

BBC News
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Macau

• Sands and Wynn casinos up and running.
• Results 22.4 million visitors, 18 increase.
• 6.95 billion gambling revenue in 2006
  (gambling revenues surpassed those
• of the Las Vegas Strip last year).
• The next big Asian target is likely Japan,whose
  parliament could vote next year to build
  casinos in two or three initial locations.
• Vietnam should legalize gambling as soon as
  possible in order to not loose out to other
  countries.

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Projections

• Tourism revenue growth of 10.8 per year.
• Reaching VND 1.480 trillion by 2010.
• 7.5 million foreign visitors.
• Project will provide jobs to many local laborers.
• Will help attract more investment into the
  province.

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Questions?

• Thank you.