By Quốc Bảo (facebook page)
The development of casinos in Vietnam
can be feasible with the current socio-economic situation of Vietnam. In
recent days, Las Vegas Sands has a new project for the development of hi-end
resort complexes in Vietnam,
one in Ho Chi Minh City
and the other in Ha Noi, which would cost up to 6 billion US dollars. Even
though people believe the project would bring the possible social risks, Vietnam
could benefit from this project in the following ways: (i) it could boost
tourism revenue to compete with other regional countries; (ii) the state budget
will be remarkably increased from gambling revenue and taxes; and (iii) it can
create many jobs nationwide, in Hanoi and Hochiminh City in particular.
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The state budget will be remarkably increased from gambling
revenue and taxes. (Source: Internet)
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The complexes would consist of spa centers, exhibition
centers, hotels, conference centers, restaurants, shopping malls, sports
centers, theaters, museums, cinemas, and other amusement services including
casinos. These hi-end resort complexes in Vietnam
would be the biggest investment project from Las Vegas Sands, one of the
prominent gambling U.S.
groups so far, if it is licensed. The large investment plan meets with a lot of
difficulties and debates from officials, scientists, and people who are
worrying about the possible social impacts of the casinos on young generation.
Meanwhile, George Tanasijevich, the Global Development Managing Director of Las
Vegas Sands, said in an interview with VietNamNet Bridge that: “Las Vegas
Sands well understands a bunch of heading obstacles which it will have to face
up to in case of investing in the project.” Also according to Mr. George, “Las Vegas Sands really
wants to invest in Vietnam.
We are still waiting. We are ready to answer all the questions to be raised by
the government of Vietnam
upon the plan, the way of doing business and about the complex tourism
industry.” (Source: Vietnamnet.vn)
The first foreseeable certain socio-economic benefit that
the project would bring is to attract plenty of foreign tourists from across
the globe; so this is a big chance to launch a more positive Vietnam tourism
image throughout the world. A lot of countries, like Singapore,
Hong Kong, Cambodia,
and Malaysia in Asia, have been successfully trying to create new
attractive features to attract foreign travelers. Vietnam already has diverse luxury
hotels ranging from one star to five stars from the North to the South.
Moreover, Vietnam
offers international standard services that make foreign tourists feel
comfortable and pleased with their spending. For example, the current luxury
hotel systems in Hanoi and Hochiminh
City can offer free breakfast, snacks,
friendly services, and wireless internet connection for those who have been
using hotel services to appeal to more and more foreign tourists throughout the
world to visit Vietnam;
this would help them feel more at home. Gambling and tourism in combination
definitely would become one of the biggest services, which could draw a
remarkable number of tourists from around the world if the project is
available. Besides, there is also a variety of tourist spots and spectacular
landscapes stretching across the country to make tourists have an interest in
visiting and discovering something new. Obviously, the more visitors who come
to enjoy the gambling here, the more revenue the localities where the casinos
are located will generate.
Specifically, in recent years, many casinos in the U.S. and Australia have been expanded for
the explicit purpose of encouraging tourism development. One of these is to
bring in a greater number of outsiders and additional wealth into the local
economy where the casinos have been located.
For instance, the major casinos of the Gold Coast of Australia have been
successful in attracting premium players from South East
Asia. The ability to use a casino as a major stimulus for tourism
development is dependent on a range of characteristics and considerations
including location, type of development, and the legal and competitive environment.
All of these add up to a big boost in the local economy.
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The project including a variety of constructions, such as
hotels,
restaurants, amusement areas, fitness clubs,
dancing clubs, casinos. (Source: Hữu Thức)
|
Another benefit from gambling casinos is that the government
can collect a considerable amount of revenue from taxes. Recognizably, revenue
tax is the main source of income to cover all operations of the government as
well as local authorities. In addition, the local authorities and the
government have to be responsible for maximizing the collection of taxes from
the casinos’ business. Vietnam needs to build a legal framework for gambling
businesses, not only for attracting an enormous amount of foreign currency, but
also for keeping the so called “foreign currency bleeding”, because most
foreigners bring their currency with themselves to neighbor nations, such as
Singapore, Cambodia, Malaysia, or Macau when gambling at the casinos. In this
case, Vietnam must learn
from Macau’s gambling tax policy in which
taxes are not changed unexpectedly and can bring it billions of dollars each
year. Wynn Resorts, CEO Steve Wynn once told Gambling in
Macau that he preferred the government in Macau to the one in Washington
regarding Macau’s economy: “Macau has been
steady. The shocking, unexpected government is the one in Washington. That’s where we get surprises
every day. That’s where taxes are changed every five minutes. That’s where you
don’t know what to expect tomorrow. Macau is stable, but Washington is not!” (Source: Macau Gambler Online).
According to Macau Gambler Online, “First-quarter gaming
revenues produced by Macau's casino market is more than $9.9 billion, up 27
percent over 2011, a year in which the Chinese gaming enclave's 34 gambling
halls had a 12-month total of $33.5 billion.” Meanwhile, Macau's
Gaming Inspection and Coordination Bureau said in the press conference that
“incredible revenues from gaming reached $3.12 billion during March, a
24-percent increase compared with the same period of last year.” As for amazing
revenues and gambling tax policy, the government has collected a great amount
of tax from the casinos’ business. Another noteworthy example of gambling tax
policy is from Singapore,
one of the more stunning tourism destinations in Southeast
Asia for travelers from throughout the world. Unlike Macau’s
gambling tax policy of 39-percent rate, Singapore simply offers the
amazingly gaming tax rate of 15 percent, but it taxes five more-percent rates
on the so called “premium” play from high-rollers and players brought in by
junkets. The close combination of two rates not only brings Singapore a large amount of money, but appeals
to a huge number of foreign visitors from all over the world traveling to Singapore for
vacations. In general, revenue taxes from casinos are a huge amount which can
bring Vietnam
prosperity and its people a comfortable life. They will bring huge wealth into
cities to provide much needed services to the communities to which they
belong.
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The hi-end resort complexes in Vietnam
would be
the biggest investment project from Las Vegas Sands. (Source: Internet)
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Last but not least, the presence of casinos in Vietnam will be
a big chance to create more jobs for adolescents. Currently, the world economic
situation is still facing plenty of difficulties in 2012; therefore, Vietnam’s
unemployment rate is forecast to be rising because of the negative impacts of
the world economy on its economy. In this situation, the solution for the
reduction of the unemployment rate which is the attraction of foreign direct
investment is extremely significant. As for this, the total investment capital
of up to 6 billion dollars from Las Vegas Sands to build two resort complexes
including casinos is a golden opportunity for Vietnam, not only to improve the country’s
economy, but to bring thousands of jobs to those who are still unemployed.
Understandably, a huge amount of the work force will be employed for
construction of the complexes.
Specifically, in an exclusive interview with Vietnamnet Bridge,
Sheldon Adelson, Las Vegas Sands chairman, recently
estimated taking at least six months to a year to plan, then two more years for
construction. The project including a variety of constructions, such as hotels,
restaurants, amusement areas, fitness clubs, dancing clubs, casinos, and roads
will temporarily reduce the government’s burden over dealing with the
unemployment situation. A remarkable number of laborers will be employed to
work in two resort complexes after two and a half years of completing the
project. As an illustration, students who qualify employment requirements
definitely have more chance to work in the resort complexes as an accountant,
sales man, or supervisor after graduation from colleges or universities.
Besides, others who are unable to qualify for academic standards can find other
chances to work in the fields that require a lower-standard, such as body
guards, drivers, waiters, waitresses, casino staffs. Though these jobs do not
require much more skills than academic jobs, they can bring employees an
impressive income. For this reason, the government generally does not have to
spend its budget on solving long-term unemployment issues.
Though the casino industry can bring lots of benefits to the
country, it may lead to the boom of individual bankruptcy, create social evils,
and increase crime rates as well. As for a developing country, like Vietnam,
gambling could be an easy and effective way to become rich for those who take
advantage of loosened law and corruption. Hence, the total income of casino
business may not go to the state budget as a business income tax. Truly, over
the developed countries with strict law enforcement like Singapore,
crimes can easily get involved in casino business. “Though recognizing the
recognition of casino business to the Singaporean economy, I still feel worried
about the possible social impacts of the casinos,” said Grace Fu, a minister of
the country (qtd. in Singapore Casinos). Also, according to Samaritans of
Singapore, a non-government organization in Singapore, the gambling business
and the lending at exorbitant high interest rates have been constantly
developing are advantage conditions for increasing crimes. The incredible
profit from casino business is always directly proportional with an increase of
social evils.
More importantly, in order to develop casino business
steadily and sustainably, the government needs to take some negative impacts
and long-term consequences into consideration. The negative impacts and
long-term consequences can be easily anticipated that the young generation may
drop out of school early, be pathologically addicted to drugs, and commit
murder or robbery. Who will be
responsible for the social evils arising from the next ten-year operation of
casinos though it is on the right track? According to the Florida Times Union,
statistics show crime rates will raise day-to-day. Over the countries which
have casino business, the rate is probably higher than non-casino business
country. “The statistics are sobering. In communities that permit Class III
casino gambling, such as Las Vegas-style slot machines, blackjack card games
and even roulette or craps, the crime rate is nearly twice the national
average,” said Bill Mccollum, an attorney general, in his research (Source: The
Florida Times Union). Additionally, statistics showed that illegal gambling was
significantly more prevalent in states that have been opening the door to
legalized gambling. His recent study found more than two-thirds of compulsive
gamblers had engaged in criminal activity, including violent crimes, because of
a gambling problem. Above all, they are practical statistics for the Vietnam
government to carefully refer before giving out a right and proper decisions
and policies as well.
In fact, casino business is a form of maximizing profits
from the development of resort complexes which bring Vietnam a lot of benefits in which
tourism development, the state budget increase, and employment issue are
essentially focal points to develop country economy. In order to attain those
achievements, the government should be paying close attention to its negative
impacts over a long-term period to launch a timely decision or solution aiming
to minimize or stop its risks immediately. Apparently, casino gambling is the
form of business in which increased revenues from taxes can be obtained from
casinos. That amount can be used to improve communities, and local services,
and infrastructure. The benefits of the project which can be easily collected
are that more and more hotels, restaurants, transportation hubs, surrounding
roads, and areas will be built and expanded to accommodate more structures.
Thanks to these, the high unemployment rate can be considerably lower and
lower.
