Las Vegas Sands Looks at Vietnam as its Next Asian Tiger

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Las Vegas Sands

Las Vegas Sands (NYSE:LVS) is contemplating building a $2 billion tourism complex in Ho Chi Minh City in Vietnam. According to reports, the project would be roughly the same scale of LVS’ Marina Bay Sands resort in Singapore and be an integrated resort which would include hotels, restaurants, exhibitions, conferences, shopping center, and a variety of other entertainment and recreational facilities. [1] LVS benefits from being relatively more geographically diversified than its most prominent competitors. LVS’ presence spans the U.S., Macau and Singapore. Its competes with Wynn Resorts (NASDAQ:WYNN), MGM Resorts International (NYSE:MGM), SJM (HKG:0880) and Genting Singapore.

See our full analysis for LVS

Asian Markets Are Key to Growth

We believe LVS’s geographical presence has helped it immensely in having a stabilized source of revenues and in withstanding rough economic times. For instance, while the recent economic recession hit LVS’ Las Vegas operations, its effect was mitigated by the substantial growth of the Macau gaming industry. It has a presence in Macau through the Venetian Macao, the Sands Macao and the Four Seasons Hotel.

LVS is one of the two resorts which were awarded licenses by the Singapore government to operate in the country. LVS, together with Genting Singapore, enjoy a duopoly in Singapore. Marina Bay Sands has posted solid revenues since its inception and helped LVS in posting strong top line numbers. (See our previous post: Marina Bay Sands: The Key Growth Driver for LVS, Supports $51 Estimate)

We consider LVS’ prospective plans of building a resort in Vietnam as a good strategic move as this would provide LVS a first mover advantage as the first of the prominent casinos to have a presence in Vietnam.

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Notes:
  1. Las Vegas Sands mulls $2 bln project in HCMC, Tuoitrenews []