Vietnam has the potential to establish a thriving sports betting industry with more supportive regulations, as discussed by experts at a seminar on November 28, organized by The Investor and Vietnam’s Association of Foreign Invested Enterprises (VAFIE).
**Decree 6: Burdensome and Inefficient**
Per a report by Tuoi Tre News, the seminar focused on Decree 6, introduced in Vietnam in 2017. This law was meant to legalize betting on horse racing, greyhound racing, and international soccer, and also to create a framework for sports betting businesses.
However, participants at the Hanoi seminar criticized the regulations as vague, restrictive, and outdated. Under Decree 6, gambling is only legal in 20 trial locations in Vietnam, with a betting limit of VND1 million (around £33.20/€40/$42). For businesses, it mandates a minimum of VND1 trillion in capital for horse racing and football betting and VND300 billion for greyhound races. A rule also requires 5% of revenue to go to the government, which experts suggest should be applied to profits instead.
A significant hindrance in today’s digital world is the decree’s ban on mobile and online gambling, relying solely on paper and phone betting.
Nguyen Ngoc My, head of the Vabis Group in Ho Chi Minh City, emphasized the necessity for Vietnam’s policymakers to adopt digital solutions, highlighting that online gaming is an “unavoidable and permanent strategic trend.”
**Potential Regulatory Changes by 2025**
Hoang Ngoc Nhat, who leads the Thien Phuc Joint Stock Company, revealed that Vietnamese gamblers spend approximately $10 billion each year, predominantly on soccer, with most of the profits currently benefiting foreign operators.
Nhat called for regulations that favor businesses to retain this taxable revenue within Vietnam, preventing it from benefiting companies abroad.
VAFIE chairman Nguyen Mai noted that sports betting is a “controlled industry with insufficient governmental management.” However, this stance might shift in the coming years.
As reported by The Investor, Vietnam’s National Assembly Standing Committee has set 2025 as the target for the government and finance ministry to revise the decree. Inputs from the seminar are expected to be submitted to the ministry to help foster the industry’s development.
Economist Can Van Luc pointed out that sports betting caters to “cultural, leisure, and tourism needs” that will persist regardless of Decree 6, so the government might as well capitalize on it.