PM okays first step in Vina Las Vegas deal

Prime Minister Phan Van Khai has permitted the developer to launch a feasibility study and submit it for approval in accordance with existing regulations, according to a notice from the Government Office.
The directive also stipulated that the investors of the project would have to rethink the complex’s name as it was deemed inappropriate.
The project has been developed by the US-based Global C&D Inc and could be supported by Lehman Brothers Incorporated.
The project would cover an area of 400 hectares on the beach by Co Co River in the central province of Quang Nam province and involve the construction of 8,000 to 10,000 luxury hotel rooms, villas, four casinos, a golf course, an apartment complex and a convention centre.
So far the developer has only made an initial proposal to find out whether the project can go ahead or not, as is required by official policy.
The proposal had to pass under the eyes of the prime minister as it involves a casino, a facility not encouraged in Vietnam. A source said investors specifically requested approval of the casinos, considering it as a necessary condition for them to pour investment capital into Vietnam.

“They will not go along with it if the project is not allowed to include casinos,” the source said.

Local authorities support the recreational complex, hungry for the huge investment it would bring in.

A Ministry of Planning and Investment (MPI) official said the investors had been asked to change the order of their investments.

“They have to build the accommodation first, then the government will consider whether to approve the casinos or not,” he said.

But two weeks ago, the Government Office announced a directive by deputy Prime Minister Vu Khoan, which stated all applications for casino projects would not be considered and management of the operation of slot machine centres would be tightened.

Vietnam now has only one casino, in the northern resort town of Do Son, where gambling is offered only to foreigners and Viet Kieu (overseas Vietnamese).

Several four- and five-star hotels have been licensed to operate limited casino services, such as slot machines with cash prizes.

Quang Nam is home to two UNESCO world cultural heritage sites – the ancient town of Hoi An and the ruins of the Cham towers.

In a meeting with the provincial leaders and concerned authorities two weeks ago, the Prime Minister instructed the Ministry of Transport to open the province’s Chu Lai airport by the end of the year and develop it as an international transit point.

The government has also permitted foreign banks and financial companies to set up businesses or branches in Chu Lai Open Economic Zone, adding that the State Bank of Vietnam had been requested to issue the necessary guidelines.