The gambling industry in Southeast Asia is undergoing profound changes, with Vietnam becoming the latest country to join the multi-billion dollar gambling market. The country's Ministry of Finance recently submitted a major proposal—a casino resort project in Yuntun with a total investment of up to 2.2 billion US dollars, marking Vietnam's active challenge to traditional gambling powerhouses such as Singapore and the Philippines, aiming to reshape the entertainment and tourism landscape of the region.
Yuntun Casino Project: A Symbol of Vietnam's Gambling Ambitions
The Yuntun Casino is located in Guangning Province in northeastern Vietnam, planned to be built into a super-large integrated entertainment resort covering about 244 hectares. The project is not only massive in scale but also represents the largest foreign investment in Vietnam to date, with a total expected investment of about 51.5 trillion Vietnamese dong (approximately 2.16 billion US dollars). The construction period is set to last nine years, planned to be completed in three phases: 25.1 trillion dong from 2023 to 2027, 22.08 trillion dong from 2027 to 2031, and the final phase of 4.3 trillion dong from 2031 to 2032. Once completed, the project can operate for up to 70 years, demonstrating investors' high confidence in its long-term returns.
The project's financing structure combines initial private capital (7.7 trillion dong) and bank loans, drawing on the successful experience of mature casino resorts in Asia, striving to create a world-class entertainment destination.
Cultural and Policy Innovation: Vietnam Allows Local Players to Enter for the First Time
Another highlight of the proposal is allowing Vietnamese citizens to participate in casino games, breaking the long-standing strict ban on local players gambling. Currently, only two casinos in Vietnam allow local citizens to enter, and this policy was not implemented until 2016. This pilot program not only reflects Vietnam's positive attitude towards regulating and developing the gambling industry but also means a significant effort to shift a large amount of underground gambling activities to legal supervision.
It is worth noting that similar trends are also evident in other Southeast Asian markets, such as the upcoming cessation of Vietnamese citizens' entry into the Corona Resort on Phu Quoc Island in 2025. If the Yuntun project is approved, it will capture this market vacancy.
The History and Competitive Landscape of the Southeast Asian Gambling Industry
The gambling culture in Southeast Asia has a long history, with archaeological evidence of gambling activities in China thousands of years ago. Modern gambling development is represented by Singapore and the Philippines. After legalizing gambling in 2005, Singapore successfully created two major integrated resorts, Marina Bay Sands and Resorts World Sentosa, becoming a regional gambling center. The Philippines, after some setbacks, has formed a mature market with about 20 physical casinos, relying on robust regulation and continuous investment.
Recently, Thailand is also actively promoting the legalization of gambling, planning to implement the "Comprehensive Entertainment Industry Act" in January 2025. This is a significant turning point for a country that almost completely bans gambling, potentially becoming another important competitor in the region.
Technological Innovation Drives the Upgrade of Southeast Asian Gambling
The Southeast Asian gambling market is undergoing a digital transformation. Virtual reality, mobile payments, digital table games, and security technologies have become the new standard, attracting a large number of young consumers. The rise of cryptocurrencies and blockchain technology not only enhances convenience but also brings regulatory challenges. Vietnam's recent crackdown on illegal cryptocurrency gambling reflects the dynamic game between technological progress and regulatory supervision.
In addition, artificial intelligence and data analysis help casino operations more accurately understand customer needs, optimize operational strategies, and increase profitability.
MGM's Regional Strategic Layout
As a global gambling giant, MGM Resorts International's layout in the Asian market is deepening. With successful experiences in Macau and Cotai, MGM not only deeply understands the characteristics of the Asian market but also actively participates in emerging projects in Thailand and Vietnam, promoting the standardized development of local gambling markets. The company focuses on the integrated resort model, integrating entertainment, dining, and retail to meet Asian consumers' demand for diversified experiences.
Dynamic and Competitive Southeast Asian Gambling Market
Singapore leads with a high-end luxury positioning, while the Philippines attracts a large number of players due to lower thresholds, and Macau remains the highest-grossing gambling market. Vietnam's Yuntun project targets the high-end market, combining lower operating costs and tax advantages, potentially becoming an important player in the region. Meanwhile, the legalization of gambling in Thailand will further intensify regional competition, with geographical and policy influences profoundly changing the choices of players and investors.
Economic Impact and Future Outlook
The Yuntun project is expected to bring about 228.9 trillion Vietnamese dong (approximately 9.67 billion US dollars) in fiscal revenue during its 70-year operation period, including high corporate income tax and value-added tax. The project will also create about 6,000 jobs, covering gambling, hotel management, and other fields.
Furthermore, the construction of the integrated resort will drive the development of tourism, retail, and service industries, promoting diversified economic growth in the local area. The special administrative region status will attract more international capital to the Yuntun project, enhancing its regional competitiveness. With the facilitation of transportation and visas in Vietnam, the potential for cross-border gambling tourism is immense.
