Vietnamese sports bettors gamble billions of dollars a year, but most of the revenue goes to overseas operators. Experts say the market is ripe for development if the government amends a 2017 decree.
Vietnam could grow a lucrative sports betting industry, given more favourable regulations. That was the consensus of business and financial experts at a 28 November seminar, hosted by The Investor and Vietnam’s Association of Foreign Invested Enterprises (VAFIE).
Decree 6: Cumbersome, unclear and ineffective
According to the Tuoi Tre News, the conversation centred on Decree 6, implemented in Vietnam in 2017. The legislation ostensibly opened the door to legal betting on horse races, greyhound races and international football. It also laid out a framework for sports betting operators.
But speakers at the Hanoi seminar said the rules are vague, prohibitive and out of step with the times.
For gamblers, Decree 6 limits legal gambling to 20 pilot jurisdictions in Vietnam and caps bets at VND1 million (£33.20/€40/$42). For operators. It requires demonstrated capital of at least VND1 trillion for horse racing and football bets and VND300 billion for dog races. It also requires that 5% of revenue go to the state. Experts argue for 5% of profits.
But the biggest barrier, in the internet age, may be the reliance on paper and phone bets, as Decree 6 does not permit mobile and online gambling.
Business leader Nguyen Ngoc My, chairman of the Vabis Group of Ho Chi Minh City, said Vietnam policymakers must embrace digital applications, as igaming is an “inevitable and irreversible strategic trend”.
Rules could change in 2025
Hoang Ngoc Nhat, chairman of Thien Phuc Joint Stock Company, said Vietnamese gamblers spend up to $10 billion annually, mostly on football, but the majority of revenue now leaves the country.
He argued for business-friendly regulations to keep that taxable bounty at home, instead of enriching offshore operators.
VAFIE chairman Nguyen Mai called sports betting a “regulated sector but without [the government’s] willingness to manage it”. But that could change in the new year.
According to The Investor, the National Assembly Standing Committee has set 2025 as the deadline for the Vietnam government and the ministry of finance to amend the decree. Suggestions made at the seminar will be filed with the ministry in hopes of developing the industry.
As economist Can Van Luc noted, sports betting is “a cultural, recreational and tourism need” that will go on regardless of Decree 6. The government might as well reap the benefits.
