VinaCapital Group suggested that Vietnam’s Comprehensive Strategic Partnership with the US could pave the way for Vietnam to host an Olympic Games within a decade or two.
According to the World Bank, between 2008-2022, Vietnam witnessed an impressive 3.6-fold increase in GDP per capita, surpassing US$4,100. This is well beyond China’s GDP per capita of around US$3,400 in 2008 when it hosted the Beijing Summer Olympics.
The Olympic Games require substantial financial resources and it’s becoming more expensive, and the average cost of hosting the Olympics has increased by 172% since 1960. This poses a challenge for any host nation.
Public debt in Vietnam is not a big issue. Data from the Ministry of Finance shows a positive trend in Vietnam’s public debt-to-GDP ratio, which has decreased from 58.3% of GDP in 2018 to 37.4% in 2022. This figure is relatively low compared to the World Bank’s recommended safe threshold.
Despite Vietnam’s large population and strong interest in sports, the current condition of sports facilities in the country does not yet meet the demand. The most famous stadium in the country—My Dinh Stadium, with a capacity of over 40,000 seats—has not been well maintained and is somewhat degraded.
For context, Malaysia boasts two large stadiums with capacities exceeding 80,000 people, while Indonesia possesses the Jakarta International Stadium and Stadion Gelora Bung Karno, both capable of accommodating large crowds. Surprisingly, Cambodia, with just one-sixth of Vietnam’s population, possesses two national stadiums with capacities between 50,000-60,000 people.
Vietnam has not previously hosted a major international sporting event on the scale of the Olympic Games. Even regional events like the Asian Games have not been hosted in Vietnam before, with the SEA Games being probably the most significant event it has successfully hosted so far. While the SEA Games provided experience, it is still relatively small-scale compared to the Olympics.
When Vietnam hosted the 2021 SEA Games, it encountered many difficulties. One was obtaining the necessary funding. Many planned activities were delayed or unable to proceed due to the wait for VND 1,200 billion (US$49.3 million) in funding. This financial constraint significantly impacted the organization of the event.
While Hanoi and Ho Chi Minh City have seen significant investment and development, other cities still need a lot of attention. For instance, in 2021, Da Nang City has called for capital ranging from VND 7,490 to 14,990 billion (approx. US$308 million to US$616 million) to build a railway connecting the city with the historic Hoi An town in Quang Nam province.
The government’s vision for Vietnam is to become an advanced nation by 2050. This means that Vietnam should develop to the point that it has the capability to host an event of the magnitude of the Olympic Games.
Vietnam still has substantial progress to make. The country will need capital and expertise to make broad improvements. This presents various opportunities for foreign investors.
Source: Dezan Shira & Associates
Read the full analysis HERE.
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