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Formula 1: Liberty Media questionably green lights Vietnamese Grand Prix

By Kevin Nguyen

HANOI, VIETNAM - JANUARY 23: Thousands of Vietnamese football fans pour into the city center to celebrate Vietnam's national U23 football team historic win over Qatar in the semi-final of the 2018 AFC U23 Championships, on January 23, 2018 in Hanoi, Vietnam. Vietnam's national U23 football team was considered the underdog at 2018 AFC U23 Championship but they have now reached the final after defeating Qatar 4-3 on penalties, despite having trailed twice in their semi-final match. This is the first time a Southeast Asian team has reached the final in the history of the competition. (Photo by Linh Pham/Getty Images)
HANOI, VIETNAM - JANUARY 23: Thousands of Vietnamese football fans pour into the city center to celebrate Vietnam's national U23 football team historic win over Qatar in the semi-final of the 2018 AFC U23 Championships, on January 23, 2018 in Hanoi, Vietnam. Vietnam's national U23 football team was considered the underdog at 2018 AFC U23 Championship but they have now reached the final after defeating Qatar 4-3 on penalties, despite having trailed twice in their semi-final match. This is the first time a Southeast Asian team has reached the final in the history of the competition. (Photo by Linh Pham/Getty Images) /
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Formula 1 looks to continue expanding its Asian calendar by adding Vietnam. They could rue that decision despite a large expected payout.

Asia is getting another Formula 1 grand prix. According to Forbes, Liberty Media, the new commercial owners of F1, are expected to announce a street race in Vietnam’s capital of Hanoi in the coming weeks.

According to Forbes, Vietnamese officials had approached former F1 supremo Bernie Ecclestone about staging a race in Ho Chi Minh City as early as 2010, but the 87-year-old declined. Ecclestone said it was ‘a step too far’.

When Liberty took over F1 in 2016, they announced an open search for more venues and came up with a list of 40 viable countries, including Vietnam. In October, Autosport reported a Vietnam Grand Prix being discussed again.

However, if Liberty make the Vietnam Grand Prix a reality, they shouldn’t expect congratulations or huge attendance numbers. There are a number of reasons why a grand prix shouldn’t be held in Vietnam, chiefly economic reasons.

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Vietnam has a rapidly growing economy in Southeast Asia, but the average Vietnamese monthly salary is still under $300 per month. If previous numbers are any indication, Vietnam will probably pay about around $400 million to F1 organizers.

The country hasn’t embraced the car as a primary mode of transportation. Many people prefer motorbikes and scooters, as they are cheaper and more convenient. A MotoGP race would make more sense. Former F1 venues such as Malaysia have embraced MotoGP in lieu of F1 due to cost and popularity.

Whether Liberty are accepting Vietnam’s proposal to offset costs related to the stagnant rebranding effort is unknown, but a Vietnamese Grand Prix doesn’t make sense from a sporting or an economic standpoint.

With a country as volatile Vietnam, an F1 race would only be considered a stop-gap solution to Liberty’s rising operating costs due to out of control spending. From a sporting view, in a country where a Toyota Camry retails for roughly $54,000 as of 2017, it begs the question: why would the population spend money to see multi-million dollar cars race when most cannot afford even the most common vehicles?

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Ecclestone has been criticized in the past for bringing F1 to countries with no racing pedigree, recently Azerbaijan and Russia and chasing the money. If Liberty announces the Vietnam Grand Prix, expect similar reactions. It speaks volumes that Liberty would take on a race that even Ecclestone didn’t want. Yet another misstep in Liberty’s direction for F1.

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