Vietnam refuses to lift casino ban on locals and foreign investors aren't happy
Local reports say the ruling is based on concerns of gambling addictions, money laundering and other illicit activities
The failure of Vietnam's government to reverse a longstanding ban on locals in casinos may be detrimental to foreign investment in the sector, analysts cautioned.
In its latest draft decree this week, the Ministry of Finance maintained that only foreigners and Vietnamese with foreign passports can access casinos, according to local media reports. Earlier this year, a request was submitted to revise the rule, sparking hopes that the newly installed government, led by Prime Minister Nguyen Xuan Phuc, would loosen the strict regulations.
Local newspapers said the ruling was based on social concerns regarding gambling addictions, money laundering and other illicit activities.
"We were thinking the government would allow locals to play low-stakes games at least; this announcement is tighter than expectations," said Michael Kokalari, head of Vietnam research at CIMB.
Speculation was also rife that officials would implement an entry fee for locals, akin to Singapore's policy, or impose a minimum net worth requirement in order to deter low-income individuals from gambling.
"On the surface, this [Monday's news] is clearly bad news for international integrated resort (IR) developers who viewed Vietnam as one of the prized global greenfield opportunities," said Grant Govertson, founding partner of Macau-based research firm Union Gaming Group, in a note.