Casino project claims a busted flush

Duong Van Chieu, deputy director at Lang Son Department of Planning and Investment, said the Hoang Dong golf course and hotel project actually had total committed capital of around $50 million. He said its developer, Lang Son International Joint Stock Company, was permitted to operate only 100 electronic gaming machines.

Chieu added that Netreal Vietnam -  the project’s sole sales agent - had overstated total investment capital and boasted of a casino to grab the attention of homebuyers in Hanoi and surrounding provinces.

“Lang Son is a poor province and doesn’t have a high profile among individual property investors. So I think it felt it had to embellish its project.”

The so-called Hoang Dong Lang Son Casino City is in the Dong Dang-Lang Son bordergate economic zone, about 12 kilometres from the Vietnam-China border and some 150km north of Hanoi.

The developer announced the project would include a 50,000-square metre international trade centre, the Lang Son Hotel and Casino, six high-class hotel and apartment blocks, 10 blocks of offices for lease, 300 resort villas, a golf course and 1,659 shops.

Lang Son International Joint Stock Company said the project would be completed in 2012, with 240 semi-detached houses to be completed in 2011’s second quarter. The fourth quarter of next year will also see 192 more house and 100 villas finished. Three hotel buildings are expected to go into operation next year.

Taiwan’s Kai Cheih International Investment, the owner of International Royal Hotel in the northern city of Halong, holds a 51 per cent stake in this project.

Lam Bao Ky, general director of Lang Son International Joint Stock Company, said the Hoang Dong Lang Son would be the Vietnam’s first project involving a casino city model.

Last November, the firm introduced Hoang Dong Lang Son golf course and hotel project to homebuyers in Hanoi. The firm is currently building apartment blocks and villas.

But Chieu said a casino city was an absurd idea. “Apart from 100 electronic gaming machines, they are not permitted to operate a casino with live playing tables. How will they develop a casino city?”

Chieu added the developer could be fined if it advertised casino facilities at this project. He went on to say provincial authorities would make sure contractors and developers were not shipping in huge numbers of foreign manual labourers to construct the project.

Last year, the Chinese Silver Shores Hoang Dat Exceptional International Entertainment Joint Venture Company was forced to remove all billboards advertising casino facilities at its resort in Danang. Silver Shores-Hoang Dat was also accused of breaking labour regulations by hiring thousands of foreign manual labourers to build the resort.