Chairman of the Hanoi People’s Committee Nguyen Duc Chung on October 14 issued the investment license for the US$420-million racetrack complex project to be invested by South Korea-based Charmvit Group.
Illustrative photo.
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At the meeting with Charmvit President Lee Daa Bong on the same day, Chung said the project once operational would create jobs and new services, in turn increasing city’s budget revenue.
Chung requested Charmvit to soon proceed with the project. Hanoi’s authority is committed to handing clear site for the South Korean group for construction.
The first race is scheduled to start in October 2020.
Charmvit’s President Lee expressed appreciated the support from the central government and Hanoi in for the project, saying the group would ensure the completion of the project as planned.
Charmvit is currently the investor of numerous real estate projects in Vietnam, including the Grand Plaza hotel in Hanoi and the Phuong Hoang golf course in Hoa Binh province.
Last December, Prime Minister Nguyen Xuan Phuc 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 a vision to 2030.
Hanoi expected to collect a corporate tax amount of US$40 million – US$50 million and special consumption tax of US$100 – 200 million per year once the racetrack complex becomes operational.
Once set in motion, the project would directly employ 5,000 people and other 20,000 – 25,000 part-time workers, generating a steady revenue flow for Hanoi budget.
In June 2018, 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 came into effect in early 2019.
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 worth US$1 - US$1.5 billion annually.
The law is seen as the government's effort to prevent money from flowing out of the country.
