Vietnam officially withdraws from hosting Asiad 18

In his meeting this afternoon with related ministries, agencies and departments, PM Dung decided to drop the plan.

Accordingly, the PM concluded as follows:

1. The Politburo, the Secretariat and the Government have a policy to ensure necessary conditions to host the regional and international sporting events, including the Asian Games, at an appropriate time to contribute to Vietnam's sports and socio-economic development. The Ministry of Culture, Sports and Tourism and Hanoi municipal People's Committee have conducted advocacy and Vietnam won the bid to host the 18^th season of the Games in Hanoi in 2019.

The Vietnamese Government thanks the Olympic Council of Asia (OCA) for its assistance in supporting Vietnam's sports in general and Hanoi in particular in hosting Asiad 18.

2. Vietnam does not have adequate experience in organising such major sports event as the Asian Games, whilst preparation to hosting the quadrennial event has not been sufficient.

So far, the plan to host Asiad 18 has not been approved by the PM. There are also many arguments about the controversial plan, over purpose, meaning, total investment and other specific funding sources.

3. Successfully hosting international sporting events will help raise the country's socio-economic development and promote its reputation in the international arena. However, if Vietnam does not carefully organise such events, the reverse effects are clear.

An analysis of major sporting events held in Vietnam and around the world shows that in most cases income fails to cover costs and facilities built for the events are often underutilised afterwards.

In the context of severe global financial crisis and economic recession, Vietnam faces many difficulties in a developing socio-economic situation. Meanwhile, the State budget is in short supply and is required to serve other priorities and urgent needs.

On the other hand, investment in the construction of a range of new facilities necessary for Asiad 18 such as track cycling, equestrian, and others, as well as expected revenues from the event to supplement for the costs, is difficult to ensure.

Through comprehensive considerations, the PM assigned the Ministry of Culture, Sports and Tourism in co-ordination with the Ministry of Foreign Affairs and the Hanoi municipal People's Committee to urgently work with OCA and partners on Vietnam's withdrawal over the 18^th Asian Games. Vietnam will reapply to host the Asian Games at an appropriate time.

Previously on November 18, 2012, Hanoi was selected by OCA to host the 18^th Asian Games. At the time, the Ministry of Culture, Sports and Tourism estimated the cost would be around US$150 million.

Evaluation, comparison and feedback from related ministries, experts, the media and the public, cast doubt on the sports ministry's plan.

It is forecast that the cost would rise up to US$800 million or even US$1.5 billion. In the context of economic difficulties and inadequate infrastructure for other essential sectors such as transport, healthcare, and education, the outlay of a billion of dollars to organise the Asian Games has not received wide support.

(Source: Nhandan Online)