Horse track is still lame

A source from the Korean firm in Vietnam said the $570 million horserace track project remained a priority, but finance for the project was not forthcoming.

“G.O.Max’s partners, Kookmin Bank and other financial partners, lost their patience and withdrew from this project.  G.O.Max is now persuading new partners to be involved with this project,” he said.

The source revealed the government of South Korea’s Chungchong-bukdo province, which has a close relationship with Vinh Phuc province officials, was a potential partner that G.O.Max wanted to collaborate with.

“The two sides are in negotiations. There is no final agreement from Chungchong-bukdo government,” he added.

G.O.Max’s project was proposed in 2007, but the firm never received an investment certificate as Vietnam is yet to have sports betting regulations.

In its proposal, G.O.Max planned to build a stadium providing between 15,000 and 17,000 seats, other recreational facilities, a golf course and luxury villas. The project would cover 170 hectares and the developer planned to establish outside betting shops in five major cities in Vietnam.

A year ago, the Ministry of Finance introduced draft regulations on betting sports, but they have not been approved.

A senior official at Vinh Phuc’s Department of Planning and Investment said G.O.Max had informed it was negotiating with a new partner and any movement “is highly appreciated” by provincial leaders.

“This shows the patience and seriousness of the developer even though it has faced many difficulties,” the official said.

At present, Vietnam has one horseracing track in Ho Chi Minh City, named Phu Tho racing course, and a dog racing track in southern Ba Ria-Vung Tau province. Those courses were invested by Thien Ma Company and Sport Entertainment Services Company, respectively. However, neither have a licence for betting services.

Australia’s Binh Phuoc Entertainment Complex Company also received an investment certificate to build a horseracing track in Chon Thanh district, southern Binh Phuoc province.

This project will cover 200ha and has total investment capital of around $100 million.