Vietnam’s pilot casino program allowing locals to gamble has faced significant challenges, particularly evident in the performance of Corona Resort & Casino in Phu Quoc. As international borders reopened, the proportion of local players dwindled, exacerbating financial losses.
Performance Overview
Since its launch in 2019, Corona Resort & Casino has generated substantial revenue, totaling VND6.4 trillion by the end of 2023. Impressively, it contributed VND3.8 trillion to the state budget, highlighting its significance in economic terms. However, despite a notable year-on-year revenue increase of 45.7% in 2023, the casino still grappled with accumulated losses exceeding VNĐ3.7 billion. These losses primarily stemmed from depreciation costs and substantial initial interest payments.
Visitor Demographics
The composition of visitors to Corona Resort & Casino provides valuable insights into the program’s dynamics. Over the period from 2019 to 2023, the casino welcomed a total of 475,450 visitors. Notably, 62% of these visitors were locals, while the remaining 38% comprised foreigners. However, the impact of the COVID-19 pandemic on visitor demographics cannot be understated. The closure of international borders during the pandemic resulted in a higher proportion of local players in 2020 and 2021. By 2023, the number of Vietnamese players had decreased significantly, constituting only 39% of total visitors.
Challenges and Adjustments
The pilot casino program encountered various challenges, including delays in the development of the second casino in Van Don and the disruptive effects of the COVID-19 pandemic on Corona Resort & Casino’s operations. These challenges necessitated adjustments and raised questions about the program’s viability. The Ministry of Finance awaits directives from Vietnam’s Politburo regarding the future of the program, following earlier trial results presented in August.
Future Prospects
The future of the pilot casino program hinges on several factors, including its economic feasibility, regulatory adjustments, and public sentiment. Decision-makers must weigh the program’s potential economic benefits against its operational challenges and societal impacts. Moreover, the evolving landscape of the tourism and hospitality industries post-pandemic will undoubtedly influence the program’s trajectory. As Vietnam navigates its economic recovery and explores avenues for growth, the fate of the pilot casino program remains uncertain yet pivotal.
The pilot casino program in Vietnam, exemplified by Corona Resort & Casino in Phu Quoc, has faced both successes and setbacks since its inception. While it has contributed significantly to state revenues, financial losses and operational challenges underscore the complexities inherent in such endeavors. As Vietnam deliberates on the program’s future, informed decisions grounded in regulatory considerations, and societal implications will be paramount. Ultimately, the path forward for the pilot casino program will shape Vietnam’s gaming industry landscape and its broader economic outlook.