Las Vegas Sands looks to roll the dice in VN

Las Vegas Sands looks to roll the dice in VN

US tycoon Sheldon Adelson said that his Las Vegas Sands is willing to build luxurious integrated resorts (IR) in Hanoi and Ho Chi Minh City at a combined investment capital of US$5-6 billion.

Sheldon Adelson granted an exclusive interview to Vietnam Investment Review, shedding light on his group’s investment plan. 

You met several Vietnamese government officials during your visit to Vietnam in December last year. What are the outcomes of the meetings?

It was for my company to make investments in both Hanoi and Ho Chi Minh City to develop integrated resorts. That’s our speciality. We are the only developer in the world that is developing IR which is our convention base.

That means our fundamental business model is designed to support exhibitions and conventions. We were the only privately own exhibition centre in the world in 1990s to build strong Sands convention and exhibition in Las Vegas.

That’s scenery between what Vietnam wants to have and what we can provide. It would like to boost tourism. We are specialised in tourism and bringing in tourism. Vietnam has no IR so far and that is fundamental component of our company. So it’s an extremely comfortable fit that we can cooperate in this.

We believe the Vietnamese government is very interested in our model and we think it also wants to have our IR in Vietnam.

Why do you want to build one IR in Hanoi?

Sheldon Adelson: I had never been to Vietnam before, so our preliminary project only designed one IR in Ho Chi Minh City. But when I arrived in Hanoi and talked to many people in the hospitality industry and tourism and I now think Hanoi has the same potential as Ho Chi Minh City. Hanoi also does not have any IR, so we know we can do that for Vietnam. That would be also the first time we develop two projects in one country at the same time.

Could you reveal the investment figures?

One of the problems now we have is inflation. We are also not familiar with working in a country with inflation up to 14 percent annually, so it is not easy to give estimation. But I can give you a very rough number. Each building could be at least US$2 billion and both buildings could be up to US$5-6 billion.

However, I am not limiting each property in Hanoi and in Ho Chi Minh City to US$2 billion. We will pay whatever it takes to build IR. If each building needs US$2 billion, we will spend it. If it needs US$3 billion, it’s okay. And we are also ready if that goes up to US$4 billion. The Venetian Macau cost us US$2.5 billion. The Marina Bay Sands in Singapore cost US$6 billion.

I have been in the business for the last 66 years and I know Vietnam is a good destination from my feeling.

I heard that you have already had the architecture design for the project in Ho Chi Minh City?

Yes. The architecture design shows the sails in a boat. In Chinese we call it a junk. And in English that’s sail. It has several major beams across, maybe five beams. We design two buildings to look like two sails in one ship. The idea is to build a building that goes with the identification of the city. The water and the river are so much a part of Ho Chi Minh City.

That is not the case in Hanoi. We have not come up with a design yet for the Hanoi-based investment. But we have an architect working on different concept right now.

How long do you think it will take to finish construction of an IR?

We usually build a hotel and start up with about 1,600 or 1,800 rooms. But if we decide to build a smaller hotel with 600-800 rooms, we might be able to build it within two years from the time we break the ground.

The fact is that we can do within six months to one year to plan the development and two years to build it. So the hotel could be open up within 3.5 years. Generally, it will depend on how fast the government will move.

Casinos play an important role in your IR developments, while gambling is not legalised in Vietnam. What will you do?

IR always has one different element that is a gaming centre. And that would be a necessary element to support other non-profitable sectors. In the US, about 32 or 33 among 50 states have legalised gambling. And each state which is against gambling sees their money flow to other states where it is legalised.

In Singapore which is known as the one of the least corrupt countries in the world did not want to have gaming, but it decided to have one in order to attract to the other elements of IR.

VIR

Dollar demand eases, price decreases

Dollar demand eases, price decreases

VietNamNet Bridge – The dollar price has unexpectedly decreased in recent days. Experts believe that with the current big gap of 10 percent in the dong and dollar interest rates, it is not likely to see the dong depreciate.

Commercial banks, both big and small, all quoted the dollar sale prices at the levels which were lower than the ceiling – the thing that rarely happens in Vietnam. 

The interbank exchange rate announced by the State Bank was 20,828 dong per dollar. Meanwhile, on the morning of February 4, Vietcombank quoted the dollar prices at 20,906 and 21,036 dong per dollar (purchase and sale prices). The prices quoted by Vietinbank were at 20,930 dong and 21,000 dong per dollar, while BIDV bought at 20,900 dong and sold at 21,010 dong per dollar.

Other big banks including Eximbank and ACB have also lowered the sale prices to below the ceiling levels. 

Especially, some commercial banks even offered to sell dollars at 20,980 dong per dollar only at some moments. Meanwhile, the black market’s price on February 4 stayed firmly at 20,970 dong per dollar (buy) and 21,000 dong (sale).

Nguyen Hong Long, a banking expert said that the dong liquidity has not been good, while there is a big gap between the dong and the dollar interest rates. Therefore, in the context of the stable exchange rate, the demand for keeping dollars is not high. Besides, the dollar supply has increased thanks to the kieu hoi – the overseas remittance.

The latest report about the newly emerging economies in Asia released by ANZ has pointed out that Vietnam’s export turnover in January 2012 decreased by 11.1 percent, while the turnover increased by 8 percent last December. Meanwhile, the import turnover also reduced sharply by 18,7 percent in comparison with December 2011. This has helped ease the trade deficit to 100 million dollars from 270 million dollars in December.

As such, both the export and import growth rates have decreased significantly, while the trade deficit of the month also did not see sharp increase.

“The supply has become more profuse, while the demand remains the same. As a result, the exchange rate is stable and it tends to decrease at this moment,” Long said.

The fact that banks have to sell dollars at the prices lower than the ceiling levels, in the eyes of businesses, means that there are many sellers and few buyers.

However, this is foreseeable. As businesses have just resumed their business after the long Tet holiday, and they have not started their business plans yet.

Le Quoc Phong, General Director of the Binh Dien Fertilizer Company, also said that the company has resumed the normal production, but it has not kicked off detailed business plans.

According to Truong Van Phuoc, General Director of Eximbank, export companies now want to sell the dollars they get from exporting products, because the dong interest rates are now higher than the dollar interest rates. 

Besides, the demand for dollars mostly comes from the businesses which need dollars to make payment for imports. Meanwhile, the businesses have borrowed from banks and paid back to banks. All these factors have backed the dollar price decreases. 

In principle, there always exists a close relation between the exchange rate and the interest rate. The high interest rate of a currency would help consolidate its firm position.

“Currently, with the dong and dollar interest rate gap of 10 percent, it is not likely to see the dong depreciate,” Phuoc said.

At present, the high interest rate has led to the low demand for credit, which also means that the demand for imports has also decreased. And once the demand for imports decreases, businesses would need less dollars to make payment for the imports. This finally has led to the low demand and the low price of the dollar.

Source: VnExpress

Garment, footwear companies hunt for laborers after Tet

Garment, footwear companies hunt for laborers after Tet

VietNamNet Bridge – As anticipated, enterprises are seriously lacking workers after Tet, because laborers do not return after the Tet holiday. Production enterprises have been taking special measures to attract laborers.

Enterprises in Song Thanh IZ are seeking workers

A lot of boards with the invitations to work for the local companies have been installed along the 1A Highway, on the stretch of road from the Linh Xuan overpass in Thu Duc district to the Ga Crossroads in district 12. 

The My Dung garment and embroidery Company in the Song Than Industrial zone has installed a board informing that is seeking garment workers. The company promises to pay 4 million dong a month and other allowances, including the lunch and dinner, diligence allowances and bonuses for Tet and holidays.

A lot of young men were seen coming to the Linh Trung Export Processing Zone on Sunday February 5 to look for jobs. A young man read the notice about the employment and took note on his book. “I wrote down the mobile numbers for contact. I think that the companies are seriously lacking workers. If we contact them, we will be able to get a job immediately,” he said to another man, standing next to him.

The notice might surprise many people who read it. “Before going and applying for jobs, please remember to bring your identity cards and clothes to stay at the companies.”

Saigon Tiep Thi’s reporter made a call to the person named Viet at the cell phone number given in the notice. “Please let me know where you live now, so that I can arrange the most convenient jobs for you. I am in charge of recruiting workers for two animal feed companies, one in district 7 of HCM City, and the other in Dong Nai province,” he said.

After the caller replied that he was in HCM City, the man named Viet said that those, who have good health, can work as porters to get relatively high wages of 350,000-450,000 dong per day. Besides, one can work as the worker packaging products and get 4 million dong a month.

“We remind people to bring identity card and clothes, so that the people from other provinces do not have to return home for those things, and they can stay working for the companies immediately,” Viet explained.

Tran Anh Tuan, Deputy Director of the Laborforce Forecast Center, said that industrial zones and export processing zones need to recruit 5000 workers, while the HCM City labor market in general needs 45,000 workers. However, it is very difficult to find laborers at this moment.

Job centers have also reported that the recruitment demand is very high these days, while the number of applications for jobs just can satisfy 1/3 of the demand. The demand is especially high from garment, footwear and electronics enterprises. Vinhempic job center is seeking 2000 garment workers, while the HCM City Job Center is looking for 400 footwear and 400 garment workers.

At industrial zones, one can seen the banderoles informing that companies are seeking 500-7000 workers, promising the income of 4.5-6 million dong a month and many other allowances. However, very few workers have applied for the jobs.

Hotels thirsty for helps

Private restaurants and hotels have also been looking for workers. The manager of Kung Phu in Di An Town of Binh Duong province said that the hotel is seeking the people who are in charge of washing blankets and clean rooms. The hotel promised to pay 2.1 million dong a month and the lunch. Besides, they can get 200,000 dong a month in diligence allowance. 

The Huong Bien hotel in district 12 complained that she still cannot find the helps as she wants, even though she offers to pay 2.5 million dong a month, meals and accommodations.

Source: SGTT

Quang Ninh to have $4 billion casino

Quang Ninh to have $4 billion casino

VietNamNet Bridge – The northern coastal province is calling for capital for two key projects, which are worth more than $5 billion: the Van Don tourist and casino complex and Van Do international airport.

Quang Ninh’s Vice Chair Nguyen Van Thanh said that the casino is part of the government-approved Van Don Economic Zone.

This economic zone will include a complex of resort, tourism, sports and entertainment facilities on 2,000 hectares in Van Yen commune, Van Don district, said Thanh.

The official said that investors have prepared more than $4 billion for this project. Quang Ninh authorities and the Ministry of Planning and Investment are working on the project to quickly report to the Prime Minister at the cabinet meeting in February 2012.

Quang Ninh also calls for investment in the $1 billion Van Don International Airport, the largest airport project in Vietnam so far. Thanh said that from Van Don Airport, flights to almost all Southeast Asian countries are less than two hours.

“Many investors, including a big group from South Korea are interested in this project. Quang Ninh is urgently preparing the pre-feasibility project to report to the Ministry of Planning and Investment and the Government,” he added.

Quang Ninh also calls for investment in 16 other projects, which will be marketed at an investment promotion conference in Ha Long city, Quang Ninh on February 23-24.

Tran Duc Lam, director of the provincial Department of Planning and Investment, said that besides usual preferences, the province is willing to pay in advance 100 percent of capital for site clearance for 12 projects and 30 percent for the remaining 6 projects. The local government also commits to provide technical infrastructure to the “fence of projects.”

According to the Ministry of Planning and Investment, Quang Ninh has attracted $3.729 billion of foreign investment in 89 projects. However, only $735 million was disbursed, representing only 19 percent. 

S. Ha

Businesses expect interest rate reductions, eagerly

Businesses expect interest rate reductions, eagerly

VietNamNet Bridge – Thousands of Vietnamese businesses are eagerly expecting the interest rate reductions. However, they have been warned that the national economy would face bigger difficulties this year, and that banks themselves would also face big challenges.

Nguyen Dinh Tan, Head of the HCM City Taxation Department, said that by the end of 2011, of the total 144,614 businesses, 8992 businesses in the city had stopped operation, 9322 businesses have stopped operation for definite time and 3412 businesses have given up business licenses.

The input material price increases, the electricity price increases, and especially the sky high interest rates have made businesses’ profits decrease. The number of bankrupted businesses has reached 50,000 nationwide.

Still lacking capital seriously

The report of the Ministry of Planning and Investment about the socio-economic situation in January 2012 released on February 4, showed that the index of industrial production IIP in January 2012, decreased by 12.9 percent over the previous month and by 2.4 percent over the same period of the last year.

According to the HCM City Taxation Department, real estate firms have been and will continue meeting big difficulties in 2012. A lot of them have to bargain away products to get back capital. It is estimated that 70 percent of the projects have halted because of the lack of capital.

Dr Le Dang Doanh, a well known economist, has warned that the garment industry would meet big difficulties. By that time in the previous years, 80 percent of garment companies had got the jobs until the end of the year. Meanwhile, they have got the orders until the second quarter this year.

Wooden furniture, household electronics and construction material manufacturers would also bear a hard pressure this year. As for cement, the inventory level has reached 2 million tons.

The report by the State Bank of Vietnam has pointed out that the dong lending interest rates have been staying firmly high. The enterprises in agriculture and rural development can borrow money at the interest rates of 14.5-17 percent per annum, while businesses in other fields at 17-20 percent, and businesses in non-production sectors 22-25 percent.

Businesses told to save themselves before the interest rates go down

According to the State Bank, the one percent increase in the inflation in January is a good factor that supports the interest rate easing. However, the central bank still needs to consider the right time for making adjustments in order to avoid negative impacts to the macro economy.

Dr Tran Du Lich, a well-known economist, said that curbing the inflation rate at one digit level must be put as the top priority task. If the inflation is uncontrollable, it will be impossible to ease the lending interest rates.

He said the State’s policy needs to serve as the navigator that leads the ship of businesses. Commercial banks themselves also have to settle their problems. In the interbank market, the banks, which have liquidity problems and seek capital in the market, have to accept high interest rates and have collaterals for the loans.

According to the State Bank, at the beginning of February, the overnight interest rate in the interbank market was sky high at 14.18 percent, while the rates were 20 percent for 9-12 month term loans.

Pham Hong Hai, a senior executive of HSBC Vietnam, noted that 2012 would be the year with many uncertainties due to the euro zone crisis, the slowdown in the economic growth in newly emerging markets and the restructure in Vietnam. Therefore, Vietnamese businesses need to be cautious in developing their business. 

“It’s now not the time to expand business scope, but to develop in quality and prioritize the liquidity,” Hai said.

Meanwhile, Andy Ho, Director of VinaCaptial, said that businesses should take initiative in seeking capital sources instead of relying on bank loans.
Source: NLD

Las Vegas Sands wishes to enter Vietnam, with casino

VietNamNet Bridge – In early December 2011, the news that the US Las Vegas Sands plans to set up a resort complex in Vietnam appeared in all local newspapers. However, the US group will have to go through a lot of obstacles to be able to implement its project in the country.

Marina Bay Sands in Singapore

After that, in the talk with the local press just before Tet holiday, in January 2012, Sheldon Adelson, President of Las Vegas Sands, said that the US group plans to set up two resort complexes in Vietnam, including one in HCM City and the other in Hanoi. 

Both of them would have the total investment capital of up to six billion dollars. The complexes would comprise of hotels, restaurants, exhibition centers, conference centers, shopping malls, spa centers, sports centers, theatres, cinemas, museums and other amusement services.

If the plan succeeds, Vietnam would become the fourth country in the world where Las Vegas Sands develops resort complexes. This would be one of the biggest ever foreign invested projects in Vietnam. Meanwhile, the complexes in Vietnam would be the biggest investment project of the US group so far.

George Tanasijevich, President and General Director of Marina Bay Sands Singapore, who is also the Global development Managing Director of Las Vegas Sands, said that the US group can see a lot of opportunities in Vietnam and has decided to invest in the country.

The US group well understands which obstacles it will have to deal with when trying to bring the project to Vietnam and it shows that it has sufficient patience. The government of Vietnam has not accepted the investment project suggested by the group.

“Las Vegas Sands really wants to invest in Vietnam. We are still waiting. We are ready to answers all the questions to be raised by the government of Vietnam about the plan, the way of doing business and about the complex tourism industry,” said George Tanasijevich on Thoi bao Kinh te Vietnam.

Everyone may know that the biggest obstacle that may make the project refused is the existence of casino. To date, the government of Vietnam has not allowed to open casinos in the country. Meanwhile, the US group has affirmed that casino would be indispensable part of the project. All the complex resorts of the US Group in the US, Macau and Singapore have casinos.

The above said senior executive of Las Vegas Sands also said that the operation of the complex resorts would heavily depend on the profits to be collected from the casinos.

“We are working with local authorities, trying to show the ways we will follow to minimize the possible social risks that may rise from the casino,” George Tanasijevich said, promising that the US group will closely cooperate with the local authorities to ensure that the social protection barriers can show their effects.

A lot of guests to the resort would not go to casinos. They would only enjoy the delicious meals at the restaurants, go to theatre, museum, or simply stay at hotels for relax.

Though the US group understands what difficulties are awaiting it ahead, it still thinks that it would successfully persuade the government of Vietnam and the local authorities.

It is obvious that the US group can bring big benefits to the countries where they have made investment. In Singapore, for example, Marina Bay Sands helped increase the number of travelers to the country in 2010 by 20 percent, and increase the travelers’ spending by 49 percent. The official figure for 2011 has not been released. However, the increase in the number of travelers may be 40-60 percent.

Source: TBKTVN