The casino industry in Vietnam is attracting significant interest from international investors. With specific legal regulations, opening and operating a casino in Vietnam requires investors to adhere to the law strictly.
Legal Framework for Casino in Vietnam
Establishing a casino in Vietnam requires investors to comply with a series of stringent regulations. According to Decree No. 03/2017/ND-CP, amended and supplemented by Decree 151/2018/ND-CP, the conditions for obtaining a Certificate of Eligibility for Casino Business include:
Legal Investment Registration: The government must issue an Investment Registration Certificate or Investment Policy Decision that includes casino business activities.
Capital Disbursement: The enterprise must disburse at least 50% of the total investment capital for the project.
Casino Business Location: The casino must be located in an area that fully meets the conditions stipulated in Clause 2, Article 5 of Decree No. 03/2017/ND-CP.
Management Personnel: The casino must have a manager or operator with a university degree or higher and at least one year of experience.
Operational Plan: The casino must have an operational business plan in accordance with regulations.
Note:
Each investment project in an integrated service, tourism, and entertainment area with a casino is only allowed to be granted one Certificate of Eligibility for Casino Business. This certificate is only issued to the enterprise named on the investment registration or investment policy decision.
Dossier for applying for a Certificate of Eligibility for Casino Business
According to Article 25 of Decree 03/2017/ND-CP, the dossier for applying for a Certificate of Eligibility for Casino Business includes:
1. An application form for the Certificate of Eligibility for Casino Business.
2. A notarized copy of the Investment Registration Certificate or Investment Policy Decision.
3. Documents proving the disbursement of investment capital as required.
4. A site map of the Casino Business Location along with a plan for arranging the Casino Business Location according to regulations.
5. A draft of the internal management regulations and an operational business plan for the casino.
6. A list, judicial records, and notarized copies of diplomas of the management personnel.
Procedure for Obtaining a Certificate of Eligibility for Casino Business
Based on Article 26 of Decree No. 03/2017/ND-CP on casino business, the procedure for obtaining a Certificate of Eligibility for Casino Business is as follows:
Step 1:
The enterprise submits one dossier to the Ministry of Finance to check the completeness and validity of the documents. Within 15 days from the date of receiving the dossier, the Ministry of Finance will notify the enterprise of the completeness and validity of the documents, request additional documents (if necessary), and submit six official dossiers for appraisal.
Step 2:
Within 60 days from the date of receiving the complete dossier, the Ministry of Finance will consider issuing the Certificate of Eligibility for Casino Business. If the certificate is denied, the Ministry of Finance will notify the enterprise in writing, stating the reasons for the denial.
Step 3:
The competent authority appraises the dossier with the following procedures:
Within 15 days from the date of receiving the valid dossier, the Ministry of Finance sends the dossier to consult with relevant agencies, including the Ministry of Planning and Investment, the Ministry of Public Security, the Ministry of Culture, Sports and Tourism, the State Bank of Vietnam, and the People’s Committee of the province where the enterprise applies for the casino business license.
Within 15 days from the date of receiving the consultation dossier, the consulted agencies must provide their opinions in writing to the Ministry of Finance and take responsibility for the content consulted.
After receiving the opinions of the relevant ministries and agencies, the Ministry of Finance will consolidate the opinions and consider whether to issue or deny the Certificate of Eligibility for Casino Business.
Based on Article 26 of Decree No. 03/2017/ND-CP on casino business, the Ministry of Finance and relevant agencies appraise the dossier according to the conditions specified in Clause 1, Article 24 of this Decree.
Regulations on Players and Requirements for Casinos
Participants in casinos in Vietnam must comply with the conditions stipulated in Articles 11 and 12 of Decree 03/2017/ND-CP. These regulations aim to control the negative impact of gambling activities on residents.
Foreign Investment Regulations
Vietnam has specific regulations concerning the ownership rights of foreign investors in the casino industry. Under current law, casinos are considered a conditional business sector. In particular, foreign investor casino projects must adhere to the Law on Investment and Decree No. 03/2017/ND-CP regarding casino operations. A key requirement is that foreign investors must commit at least USD 2 billion to the project, which also requires government approval.
Joint Ventures and Partnerships with Local Enterprises
Foreign investors often form joint ventures or partnerships with local enterprises to comply with ownership regulations and enhance project success. This collaboration ensures legal compliance and leverages local market knowledge, culture, and management systems.
Compliance Obligations and Regulations
Casino operators in Vietnam must strictly adhere to legal requirements, including:
+ Maintaining security and order at the business location.
+ Managing finances transparently.
+ Regularly reporting revenue to the authorities.
Regular Audits, Reports, and Inspections
Casino operators must be prepared for regular audits, reports, and inspections from the authorities. These audits ensure that the casino operates in accordance with its license and fully complies with legal regulations.
Financial Obligations and Taxes
Special Tax Regulations for the Casino Industry
The casino industry in Vietnam is subject to specific tax regulations. Casino operators must pay various taxes, including value-added tax (VAT), corporate income tax, and special consumption tax.
A special consumption tax is applied to casino business services at a relatively high rate to limit the negative impact of gambling activities. Additionally, casino operators must pay corporate income tax according to the applicable tax rate under the Law on Corporate Income Tax.
Financial Reporting and Accounting Requirements
Casino businesses must maintain complete accounting records and submit regular financial reports to the relevant authorities.
Challenges and Considerations
Foreign investors may face challenges such as:
– A complex legal environment.
– Policy risks.
– It complicated administrative procedures.
Legal and Cultural Considerations
Investors need to consider the ability to comply with local laws and understand the business culture in Vietnam to minimize risks and increase the likelihood of success.
Conclusion
Opening a casino in Vietnam is an attractive yet challenging investment opportunity. To succeed, investors must thoroughly understand the legal framework, adhere to the licensing process, and consider legal and cultural factors. Close cooperation with legal experts and local partners is crucial for minimizing risks and maximizing profits from the casino investment project in Vietnam.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town Building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
