Casino glut looms in Vietnam

VietnamVietnam’s go-ahead for locals to enter one of the country’s casinos for a trial period has set off a rat race to lure gaming investors in a country where local leaders have been chiefly judged by economic growth rates alone.
In August 2013, the Communist Party’s decision-making Politburo allowed Vietnamese meeting certain criteria to gamble in a casino to be built in the Van Don Economic Zone in Quang Ninh Province bordering China. Vietnamese tycoon Dao Hong Tuyen and US firm ISC Corporation are investing in the US$7.5 billion project that includes a casino, marinas, a convention center and golf and tennis clubs.
Since that decision, “at least 10 provinces” have raced to win a casino license in their localities, Minister of Planning and Investment Bui Quang Vinh said at a recent conference.
“I’m under a lot of pressure because of this race, which is also wearing me down,” Vinh said, without identifying the provinces.
The looming casino-building spree is emblematic of how local leaders are judged only by short-term performance, analysts say. Vietnamese cities and provinces often compete with each another by building airports, seaports or golf courses, leading to a glut of infrastructure projects which only helped to boost local gross domestic product (GDP) figures thanks to construction, infrastructure, money flows through banks and new employment in the short run.
“Mayors have been judged by how much their cities have grown, regardless of whether it is sustainable,” a Vietnamese economist told Vietweek on condition of anonymity.