Vietnam currently ranks fourth among 20 Asian countries in gambling activities, fueled by a vibrant casino market and widespread participation, but it lacks a comprehensive legal framework to effectively manage and tax the industry, an expert told a seminar in Hanoi on Thursday.

The seminar, co-hosted by Vietnam’s Association of Foreign Invested Enterprises (VAFIE) and its magazine The Investor, sought feedback from experts and industry insiders to amend the central government’s Decree 06/2017 on horse racing, greyhound racing, and international football betting regulations.

Can Van Luc, chief economist at the Joint Stock Commercial Bank for Investment and Development of Vietnam, better known as BIDV, highlighted legal hurdles as the biggest obstacle to developing Vietnam’s gambling industry, which he said has significant growth potential.

According to a British company’s analysis, both legal and illegal betting revenues in Vietnam are equivalent to 3-5 percent of its GDP.

However, stringent rules and a lingering stigma around gambling have hindered the industry's growth since 2017.

“In reality, gambling is a cultural, recreational, and tourism need,” he argued.

Hoang Ngoc Nhat, chairman of local firm Thien Phuc Joint Stock Company, estimated that Vietnamese gamblers spend US$5-10 billion annually, with football betting taking the lion’s share.

But the majority of this money flows overseas, Nhat noted.

He believed that improved regulations could help the Southeast Asian country retain these funds and generate substantial tax revenue.

Business representatives at the seminar agreed that cumbersome rules discouraged investment in the gambling industry.

They expouned that many investors are eager to enter Vietnam's betting market, particularly football betting. However, Decree No. 6 poses significant challenges, with some provisions regarded as restrictive and unprofitable.

Nhat called for amendments to the decree to allow gambling activities to expand nationwide instead of limiting them to 20 pilot provinces and cities, adding that the government should clarify bidding processes for investors to obtain operational approval and allow mobile and Internet-based betting from the start of any project.

Besides, the law on betting on international matches recognized by FIFA, continental federations, and other national bodies should be clarified.

Meanwhile, gambling on sports events involving Vietnam would require approval from the Ministry of Culture, Sports, and Tourism, Nhat added.

Nguyen Ngoc My, chairman of Vabis Group, which operates betting businesses in Ho Chi Minh City and neighboring Ba Ria-Vung Tau Province, urged the adoption of modern technology in the industry.

The Vabis Group leader suggested enabling Internet and app-based betting to align with global trends.

A survey by TGM Research, an international market research and data collection agency, in 2022 found that 80 percent of global sports bettors used online platforms. 

In Vietnam, despite restrictions, 91 percent of illegal gamblers placed bets through mobile apps or the Internet.

My criticized outdated methods, such as requiring landline phones or in-person transactions, as wasteful and incompatible with modern technology.

He mentioned lottery operator Vietlott as an example of how digital options transform customer behavior.

Vietlott saw a sharp decline in physical ticket sales after introducing its mobile app.

Nguyen Anh Tuan, vice-chairman at VAFIE, agreed that the implementation of Decree No. 6 has remained ineffective since its issuance.

To address the issue, the Standing Committee of the law-making National Assembly issued Resolution No. 1035 on April 8 this year, calling for a comprehensive legal framework for lotteries, betting, and casinos by 2025.

Nguyen Van Phung, former head of the Large Taxpayers Department under the finance ministry’s General Department of Taxation, argued that legalizing gambling would increase the country’s tax revenue.

Phung said that growing demand and technology advancements would make it feasible to regulate gambling more effectively through a new fiat.

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