31 Aug 2012 Intellasia Finance Vietnam - Hong Kong Business ...

FINANCE
Vietnam finance & business 31 August 2012
Hanoi To Put 10pct Tax
On Abandoned Villas
was made after the trips. However, people hope that more detailed information would
be released this time.
Analysts believe that once McDonald's joins the Vietnamese market, it would lead to
the big changes on the market.
A representative of McDonald's said the fast food giant is seeking the partners in Vietnam
through some service providers in Asia. He also said that McDonald's would be
officially present in Vietnam in two years, while HCM City would be its first destination,
where one or two shops would be set up.
The shops with McDonald's brand would also appear in Hanoi, the biggest city in Vietnam.
Meanwhile, in the long term development strategy of the fast food group, the
number of McDonald's shops in Vietnam may reach 100.
McDonald's network has covered 119 countries and territories all over the world. The
giant's success has been brought by the strategy on exporting the business management
model developed and tested in the US.
The fast food giant has also spent money and time to conduct market surveys to find
out the specific tastes of different customers. Therefore, in every country where Mc-
Donald's sets foot in, it offers the specific dishes that fit the native consumption habits.
In Malaysia, Singapore and Thailand, for example, McDonald's provides the drinks
with durian favour. In India, pork is replaced with lamb. It plans to serve 2-3 new dishes
that fit Vietnamese customers.
As such, after Starbucks Coffee, The Johnny Rockets, another US brand would be
present in Vietnam, which promises the big changes in the fast food market which is
now being dominated by KFC, Lotteria and BBQ.
There are three specific things in the Vietnamese fast food market. First, Vietnamese
people choose fast food shops for the parties which last many hours.
Second, fast food is understood as cheap food products. Meanwhile, in Vietnam, they
are very expensive.
Third, the market is being controlled by foreign chains.
http://english.vietnamnet.vn/fms/business/26276/foreign-fast-food-giants-run-a-racein-vietnam.html
31/AUG/2012 INTELLASIA | DTINEWS.VN
Hanoi authorities proposed to impose new taxes on abandoned villa projects as a punishment
to investors.
According to the Hanoi Department of Construction, as of June the city had about 655
villas and 574 linked houses, which were completed but unused.
The villas that have been abandoned for less than three months will be subject to a 5
percent tax on the contract value, while a 10 percent tax will be applied to those abandoned
for over that term. The Ministry of Finance also proposed fining the investors
VND10-20 million (USD478-957) per villa.
However, experts said this could prove difficult since the government has not yet
clearly defined what constitutes abandonment.
In addition a progressive tax system has been suggested for those households that buy
more than one property. Many have suggested that the properties are considered assets
of the investors.
Others claim, however, that these abandoned villas are proof that the investors are
having difficulties and more taxes will simply add to their difficulties in tough economic
times.
The prime minister has ordered the local authorities to carry out an inspection on the
matter, and requested that investors comply by putting the villas to use by the third
quarter, suggesting that they may be forced to sell them to people with real demand.
http://stoxplus.com/News/89598/1/184/hanoi-to-put-10-tax-on-abandoned-villas.stox
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