South Korean conglomerate, Charmvit Group has been granted its investment certificate and license by the Hanoi People’s Committee that will allow the company to build a multi-function entertainment complex and horse-racing track in Hanoi’s Soc Son district.
The issuance of the license to Charmvit follows a decision by Vietnam’s Prime Minister, Nguyen Xuan Phuc, to add the project into the Hanoi socio-economic development master plan by 2020, with a vision to 2030.
According to Charmvit’s outline, the project will cover 125 hectares of land in the Soc Son district and will include an entertainment complex, a hotel, convention and center and villas, along with the horse-racing track. The horse-racing track is being built to accommodate 30,000 visitors and sports betting will be allowed.
The project is expected to cost $420 million USD with construction completed in 2024. However, Charmvit has asked the Soc Son district authorities to speed up site clearance so that the horse-racing track can be operational in October 2020.
The Hanoi government said that based upon the initial project outline that it expects to collect a corporate tax amount of $40 – $50 million USD. Hanoi will also receive a special consumption tax of $100 – $200 million USD per year once the racetrack complex becomes fully operational. The project would directly employ 5,000 people and other 20,000+ part-time employees and will generate a steady revenue flow for the Hanoi government’s budget.
Sports’ betting has been illegal in Vietnam, and as a result bettors have been using international gambling websites, and are estimated to gamble $1 - $1.5 billion USD each year. In order to decrease the outflow of money and increase revenue for the national and local governments, Vietnam’s National Assembly approved revised laws in 2018 that allow Vietnamese citizens to wager on a variety of sports events. The revised law is set to come into effect this year.