Vietnam – Donaco International, which owns and operates Vietnam hotel and casino Aristo International Hotel and Casino has today announced that it is reducing its staff headcount and organising unpaid leave with its staff amid coronavirus crisis.
The virus has had a devastating impact on both life and business in Asia and the firm has stated that it will be ‘deferring various capital expenditure projects’.
In a statement released today, Donaco International said:
“[Coronavirus] had a specific impact on Donaco’s business operation at the Aristo International Hotel in Lao Cai, Vietnam, which borders Yunnan province. In response to the slowdown in the business, Aristo management has arranged unpaid leave for many staff members in February, and has also reduced total headcount, as well as deferring various capital expenditure projects.”
Reportedly, the Lao Cai checkpoint near the border ‘is currently tightly restricted, with crossing allowed only for visitors with an urgent or official business reason’.
The firm elaborated on the detrimental effects on revenue caused by the virus and the tough decisions it has had to make along with the reasons why:
“Substantial reduction in players visiting the Aristo casino hall, and consequent reduction in gaming turnover.”
It is not yet clear how long the border restrictions will remain in place and the future hangs in the balance of how well the virus is contained and prevented from spreading.
Donaco International also owns and operates a casino establishment in Thailand, but has stated that there are no noticeable impacts from the coronavirus:
“In the longer term, if efforts to contain the virus are unsuccessful, there is likely to be an impact on the Thai economy generally, which has a strong tourism element. This may lead to an overall reduction in demand from Thai visitors to the Poipet casino.”
The planning and investment ministry in Vietnam said in a statement to the government:
“The epidemic has caused widespread impacts, disrupting global supply chains. Vietnam has an open economy and shares a long border with China, so the impact will be significant.”
It is reported that Vietnam needs to work out a plan of economic action to stem the flow of its floundering economy and reinvigorate the economy whilst preventing a recession.