Prime Minister Nguyen Xuan Phuc has approved the US$420-million racetrack complex in Hanoi after agreeing to include the project into the capital city’s socio-economic development master plan until 2020, with vision to 2030.
Illustrative photo.
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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 becomes operational around 2021.
Once set in motion, the project would directly employ 5,000 people and other 20,000 – 25,000 indirectly, generating a steady revenue flow for Hanoi state budget.
In June, Vietnam’s National Assembly approved the revised Law on Physical Training and Sports, which allows locals 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 Vietnamese dong, the local currency, is permissible.
Sports betting was considered illegal in Vietnam, which made many local bettors 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 law is seen as the government's effort to prevent money from flowing out of the country.
