Horses race at the Thien Ma – Madagui track in Lam Dong province. Allowing gambling on horse racing would help boost tourism in Vietnam. (Photo: nld.vn) Hanoi (VNS/VNA) - If Vietnam legalises sports betting, billions of dollarscould be recouped for the country and help boost tourism post-COVID-19.
Thatwas one of the topics discussed during a seminar in Hanoi on June 23 attendedby economic experts, government ministries and representatives from bettingcompanies.
Althoughgambling is currently illegal in Vietnam, the Ministry of Finance is draftingan amendment to the decree to allow betting on horse racing, greyhound racingand international football.
This,according to those who attended the seminar, could help the country recoveryafter the COVID-19 pandemic seriously affected tourism.
Andthey estimated the amount of revenue that would be received if the gamblingindustry increased, through tax.
EconomistNguyen Mai told Vietnam News: “It is necessary to have mechanisms and policiesto attract investors in the prize-winning entertainment industry as it willhelp the tourism to gain back.”
Accordingto the Vietnam National Administration of Tourism (VNAT)’s estimate, ifinternational tourists increase average spending to about 1,000-1,500 USD fromthe current spending of between 400-600 USD per visit, the internationaltourism revenue in Vietnam will increase at least 8 billion USD to 15 billionUSD each year.
Arepresentative from VNAT said the country had potential operating the prize-winningentertainment as 80 percent of the international tourists to Vietnam wereAsian, many of them enjoying gambling.
Healso added that visitors would stay longer and benefit the local hospitalityand other relating services.
Inaddition with the added revenue, Nguyen Van Phung, Director of the Tax PolicyDepartment from the Ministry of Finance, said: “Vietnam can have at least 10percent from the value added tax from the industry and between 10-30 percentfrom the special consumption tax.”
However,Nguyen Anh Tuan, Editor-in-chief of The Investors Magazine, which organised theseminar said: “While Vietnam has a great potential to develop the industry,compared to many countries in the region, the local market for prize-winningentertainment is very small."
DoVan Su, Director of the Foreign Investment Department under the Ministry ofPlanning and Investment, said turnover for prize-winning games for foreignersreached 13.2 trillion VND in 2019, up 22.8 percent compared to 2017 and twiceas much than in 2013.
Whilehe accepted the market has grown steadily in the past, Su believed there ispotential for greater growth, especially if local people are allowed to betlegally as well as foreigners.
EconomistNguyen Mai told Viet Nam News: “The healthy market will help avoid the‘bleeding’ of foreign currencies through black market gambling and throughVietnamese people going abroad to visit casinos.”
Maisaid because gambling had been frowned upon and did not meet the nation's finecustoms and traditions, Vietnam had not yet put such regulations for activitieslike football betting, horse racing and casino into law.
Hesaid: “This will make the country miss the chance to develop the industry whichcould promote tourism.”
Attendingthe seminar, Nguyen Ngoc My, President of Vabis Group, which owns a horseracing course, a dog racing course and computer gaming service in Vietnam said:“Vietnam needs to have a special organisation to manage the industry whichcould become a billion dollar industry.”
MichaelEfron, chairman and CEO of the Vietnam Sports Player PTY LTD, who has 50 years’experience in the horse racing industry in Australia, Japan and the Republic ofKorea, said: "This is vital if Vietnam is to promote horse racing andbreeding and the integrity within federation member countries to encourage anddevelop mutually beneficial objectives and strategies between racingorganisations."
Hefeels horse racing would finally encourage, promote and support internationalcompetition for trainers, jockeys and horses when conditions permit.
Alsoat the seminar, Can Van Luc, chief economist of BIDV, said according to theWorld Tourism Organization, Vietnam was ranked six out of 10 countries with theworld's top tourist growth.
Lastyear, the total revenue from tourists reached 768.5 trillion VND, 13 timeshigher than in 2008, adding tourism's direct contribution in local GDP was 9.2per cent and indirect contribution of 14 per cent through job creation, on-siteexport and income generation for local communities.
Lucsaid: “Compared to other places in the world, it is still relatively low andneeds to be better with more services and entertainment.
"Itis necessary to change this mindset of banning the things that are not yet wellmanaged. Instead, there is a need for a mechanism and policy to develop theprize-winning entertainment associated with tourism and night economy.”
Hesuggested to learn from the regional experiences of China, Singapore, Malaysia,adding: “We need to build and complete the legal system of prize-winningactivities such as horse racing, dog racing, amusement parks, which can ensureit will go in a direction that boosts tourism and causes no risks.”
Mechanismsand incentives to encourage investors such as land and tax incentives should bealso added to the legal system, said Luc./.
VNA
