Major Vietnam casino operator incurs 15th consecutive loss despite tourism recovery

Despite a worldwide tourism rebound, Vietnamese casino operator Royal International Corp. recorded a loss of 1 billion USD in the latest quarter; the latest report is Royal International’s 15th consecutive quarter loss.

Original review and insights by Erik Gibbs for Casinoreviews.net; original report by Tat Dat for VNExpress International

The latest loss has surpassed its previous ones last year by almost 48 times.

Royal International saw a decline in revenue, witnessing a 42% year-on-year drop that amounted to VND24 billion (US$1.01 million). This is in spite of a recovery of tourism in the country.

Royal International operates a prominent resort located in the scenic Bai Chay area, situated in the city of Ha Long, Quang Ninh. Offering a diverse range of amenities, including a casino, hotel and luxurious villas.

The casino is a foreigner-only one with 18 tables and 62 slots, open 24/7. Play includes baccarat, roulette, blackjack and other popular games.

However, during the previous quarter, the casino division incurred a loss of VND9 billion (US$379,800), while the hotel and apartment divisions registered a combined loss of VND14.5 billion (US$611,900).

The company experienced a loss of VND35 billion (US$1.47 million) in the first half, falling far short of its annual profit target of $1.5 million. Moreover, in 2022, it faced yet another financial setback, with a loss of VND61 billion (US$2.6 million), marking the fourth consecutive year of losses.

Regardless of the rise in earnings, Royal International experienced a decline in revenue from VND125 billion in 2020 to VND119 billion in 2022 (US$5.27 million to $5.02 million), which is a 60% annual decrease.

Royal International, a registered establishment since 1994, has been in the red almost every year since then.
Only in 2015 and 2018 did it report revenue gains. As a consequence of these difficulties, its shares were removed from the Ho Chi Minh Stock Exchange in May of 2022.

Vietnam is currently weighing options for the expansion of its casino industry, deliberating on the best course of action.

Presently, the only casino available to the Vietnamese is Corona Resort and Casino, situated on the island of Phu Quoc in the southern region of the country. However, access to the casino floor is granted exclusively to those who can demonstrate their financial ability to comply with the regulations set by the government.

To learn more on how Vietnam’s tourism industry rebounded, read the original review of Erik Gibbs at https://www.casinoreviews.net/news/one-of-vietnams-largest-casinos-losing-millions-of-dollars-each-month/