Hanoi expected to collect a corporate tax amount of US$40 million – 50 million and special consumption tax of US$100 – 200 million per year once the racetrack complex become operational beyond 2021.
Illustrative photo.
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Hanoi is seeking the government’s approval for the project after Decree No.06 stipulating a five-year pilot program for betting on horseracing, greyhound racing, and international football was issued in 2017. Additionally, local bettors must be over 21 years of age, having an account with a licensed bookmaking company, and a wager limit of VND1 million (US$44) per day.
The project is part of the revised masterplan for Hanoi’s socio-economic development until 2020, with vision to 2030.
Once operational, the project would directly employ 5,000 people and other 20,000 – 25,000 indirectly, generating a steady revenue for Hanoi state budget.
In 2018, Hanoi is expected to receive 26 million tourists, up 9% year-on-year. Of the sum, 5.7 million are foreign tourists, up 16%.
In June, Vietnam’s National Assembly approved the revised Law on Physical Training and Sports, which allows local to wager on a variety of sports events. The revised law is set to come into effect in 2019.
Following the law, gambling firms are now permitted to operate in Vietnam if being licensed by competent authority. Bookmakers are allowed to take bets on selected events approved by the government, and only the local currency is permissible.
Sports betting was considered illegal in Vietnam, which led to many local bettors to turn to international gambling websites. The Illegal betting market in Vietnam is estimated to be worth US$1 - US$1.5 billion on an annual basis.
The move now is seen as the government's effort to prevent money from flowing out of the country.
