The protectors of Ho Chi Minh Mausoleum

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The task of safeguarding the embalmed corpse of Vietnam’s revolutionary leader Ho Chi Minh is grueling. Carefully-selected riflemen work around the clock, watching over the communist nation’s founding father who died 50 years ago last Monday. AsiaTimes reports.

Protecting him is the ultimate patriotic service for men in stiff white uniforms at Ho’s towering tomb in Hanoi, a monolithic shrine to a man who still pervades public life despite his fading relevance among the youth.

The job is a “dream come true” for guard Nguyen Xuan Thang, even if it’s not always easy. “We have to have our eyes on everything to deal with any situation that may arise,” the 41-year-old lieutenant colonel said.

All year round, he works up to four two-hour shifts every day – often outside the tomb in the blistering summer heat, monsoon rains or frigid winter weather.

Some days he works inside the cool, dark chambers where Ho’s waxy body – his wispy goatee beard still intact – is on display for daily pilgrimages by thousands of schoolchildren, tourists and war veterans who come to pay their respects.

Never alone

Even after hours, Ho is never alone – soldiers flank his encased body 24 hours a day.

“For us who see him every day the emotion is still overwhelming,” said Thang, who like the rest of his team was hired because of his physical stamina, communist party dedication and easy-on-the-eyes appearance.

Guards like Thang aren’t the only ones tasked with looking after Uncle Ho, as he is affectionately known in the country. A team of four Russian and seven Vietnamese scientists were hired this year to evaluate his embalmed corpse ahead of the 50th anniversary on September 2.

“The body of president Ho Chi Minh has been kept in very good shape,” said Major General Cao Dinh Kiem, a senior member of the team in charge of guarding the mausoleum, which opened in 1975.

Rumors abound in Vietnam that the body might not really be Ho, or that he is sent to Russia every year for maintenance, which Kiem dismissed with a smile.

“In short, that is not correct,” he said.

Leaning on Russian embalming expertise isn’t new in Vietnam.

Ahead of Ho’s death in 1969 – and behind his back – his aides turned to allies in the Soviet Union to ask how they preserved their own communist founding father, Vladimir Lenin, who is still entombed in Moscow’s Red Square.

Vietnam struck up a deal with the USSR to receive embalming materials and guidance from their experts. The deal died after the collapse of the Soviet Union in 1991, and Hanoi scrambled to replace it with a commercial arrangement for the exchanges, which remains in place today.

State secrets

Considered state secrets, the details of that arrangement cannot be publicly shared, not even with communist allies North Korea or China, which have both preserved former leaders for posterity.

“In terms of (sharing) the pharmaceutical techniques, it’s an absolute no,” said Kiem.

Ho did not live long enough to see the end of the bloody war against the US-backed south in 1975, when North Vietnamese tanks rolled through the former southern capital Saigon, later renamed Ho Chi Minh City.

But Ho did deliver clear burial plans in his will – a request to be cremated and have his ashes modestly displayed in north, central and south Vietnam in a sign of symbolic unity.

“There should be no stone stele or bronze statue,” but rather a small ceramic urn on three tree-lined hills for visitors, he wrote his will.

However, eager to capitalize on the popularity of the north’s communist leader, his aides chose instead to build a grand tomb, drawing inspiration from Lenin’s mausoleum, the pyramids in Egypt and the Washington Monument.

The powerful symbol of Ho Chi Minh continues to be commandeered today by Vietnam’s communist leaders. His teachings are invoked in school curricula, political and military training, children’s books, patriotic songs and on propaganda billboards.

“The Communist party needs Ho and uses Ho whenever and wherever it can … there is a Ho for everyone – children, mothers, cadres, bureaucrats, and soldiers,” said Christopher Goscha, author of Vietnam: A New History.

But for Vietnam’s booming young population – about half the country is under 30 – Ho figures as a distant historic character, far removed from the thriving capitalism, ubiquitous social media and yearning for freedom that preoccupies most of the smartphone-obsessed youth today.

“Ho has stiff competition and it’s only getting more difficult to make him relevant to this younger generation,” Goscha said.

But for Ho’s dutiful minders, the communist leader remains a central focus.

Thang and his team busily prepared for an official wreath-laying ceremony for Ho held last Friday, and expected visitor numbers to surge on Monday for the death anniversary, which also happens to be National Day.

“We have prepared our soldiers spiritually and physically to best serve visitors … and pay respects to the president,” Thang said.

By TRAN THI MINH HA | JENNY VAUGHN. 

Privatizing State-Owned Companies in Vietnam

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When Vietnam started privatizing state-owned enterprises in the 80s, the private sector, which includes local businesses, began to flourish. When Vinamilk, a dairy product company, was privatized the company expanded globally, and today are operating in more than 43 countries, surpassing $2.2billion revenues in 2018. That’s a lot of milk!

By IMF

ADB names VIB “Leading SME Trade Bank” in Vietnam

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Vietnam International Bank (VIB) has been named “Leading SME Trade Bank”” in Vietnam by Asian Development Bank (ADB). This is a prestigious award honoring partner banks of the ADB’s Trade Finance Program with outstanding achievements are .

The award ceremony took place on September 3, 2019 in Singapore, as the only awards and dinner event of the Global Trade Review Asia 2019.

The “Leading SME Trade Bank” award was given to VIB based on the number of transactions the bank carried out to facilitate and sponsor trade for small and medium-sized enterprises (SMEs) under the ADB’s Trade Finance Program. Between July 1, 2018 and June 30, 2019, VIB assisted more than 80 businesses through trade finance transactions worth over 177 million USD in total. VIB is the only bank in Vietnam to win this award in 2019. This is also the third consecutive year that VIB has won this award by ADB..

VIB joined the ADB’s Trade Finance Program in 2009, in order to provide financial assistance to SMEs in importing and exporting sectors, and boost their productivity and competitiveness on the market.

Backed by ADB’s AAA credit rating, the Trade Finance Program provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia and the Pacific to engage in import and export activities. Since 2009, ADB’s Trade Finance Program has supported more than 15,000 SMEs across developing Asia—through over 21,000 transactions valued at over $36 billion—in sectors ranging from commodities and capital goods, to medical supplies and consumer goods. In 2018, the Trade Finance Program grew almost 40% to support $6.2 billion in trade through 4,470 transactions. .

Vietnam International Bank (VIB)

Thanks to the confidence that international financial institutions have in VIB, VIB has been given a credit limit of up to USD 300 million from institutions such as the ADB, the IFC (International Finance Corporation) for its trade finance activities.

This is the fourth time in 2019 that VIB has received a prestigious award from international financial institutions for its activities. Recent awards include: The international card organization MasterCard recognized VIB as one of the leading banks in Vietnam in credit card spending in 2018; The financial magazine The Asset (headquartered in Hong Kong) awarded VIB “Digital Bank of the Year” and “Digital Bank with Best Customer Experience” for three consecutive years; and The financial magazine International Finance (UK) awarded VIB “Bank with the most innovative working environment in Vietnam” for its efforts to improve the workspace and strengthen ties among employees.

Besides international recognition, VIB is also one of the first two banks to apply Basel II risk management standards, and has contributed positively to the push for a cashless society in Vietnam.

Vietnam E-Learning Market has been driven by Rising Demand for Multimedia Content

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Vietnam E-Learning Market has been driven by Rising Demand for Multimedia Content coupled with Increasing Internet and Smart Phone Penetration in the Country. Ken Research reports.

“Rising Internet Penetration with the Development of ICT Infrastructure in Vietnam and Increased Number of Students Enrolling In High Schools Has Driven the E-Learning Market of Vietnam”.

Analysts at Ken Research in their latest publication “Vietnam E-Learning Market Outlook to 2023 – Driven by Rising Adoption of Smartclasses, E-books in Schools and MOOCs and Smart Authoring Tools in Corporate Training and Test Preparation Segment” believe that Vietnam E-learning industry is projected to register a positive CAGR of 20.2% during the forecast period 2019-2023. Increasing number of internet users, rising government efforts to grow E-learning in Vietnam, adoption of modern technology by the learners, and the growing use of learning management systems by the corporate sector to integrate their process are expected to drive Vietnam E-learning industry in the future.

Increased Internet Penetration: There is an increase in the number of 3G subscribers to 40.0 million from 2013-2018. In regard of Internet connection services, broadband should maintain healthy growth for the near future, although the fixed line broadband and internet access markets, both controlled by the state-run Vietnam Posts and Telecommunications (VNPT), face competition from mobile services. The improvement of internet infrastructure had built the road for successful launch of E-learning platforms in Vietnam.

Strong Government Initiatives: In order to promote E-learning within Vietnam, the government invited higher education institutions to participate in a set of centrally funded ICT projects, particularly in the area of e-learning. The purpose of these projects was both to enable institutions to improve the efficiency of their internal operations, but also in the case of e-learning to anticipate delivery of education to a broader population of students, both on and off campus. The government’s approach to these projects was initially laissez-faire, with the formulation and implementation of ICT strategies largely left to the institutions themselves.

During the 2000s, the laissez-faire approach of the 1980s and 1990s was replaced with a more interventionist approach, with government taking a leading role in the strategy formulation. With Government being more proactive in the recent years for the promotion of E-learning, a drastic increment in market growth has been witnessed in the years 2013-2018.

Acceptance of online learning away from traditional learning system: From that past 20 years that is 1980’s when distance education came into picture in Vietnam, the people have been very resistant towards online learning. They believed to have credibility issues with online content and always wanted to stick around with the traditional method of learning. However, in the recent years with the increasing awareness of people about the benefits of digital education, the end users have started incorporating E-learning as a secondary form of learning and are willing to complete change the learning system away from traditional methods.

For more information on the research report, refer to: Vietnam E-Learning Market

Related Reports:

Vietnam is among the top three target countries for phishing

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Vietnam among top targets for phishing in Southeast Asia in the first half of the year, according to the global cybersecurity company Kaspersky.

Recent statistics gathered by Kaspersky showed Southeast Asia remains a target of cybercriminals attempting to infect networks and devices through the simplest yet most effective trick called phishing. The global cybersecurity company has detected a total of 14 million phishing attempts against internet users in the region for the first six months of 2019.

It reveals that there were over 11 million combined attempts detected from these three countries. Moreover, Thailand logged nearly 1.5 million attempts while the Philippines had over one million incidents. Singapore posted only 351,510 attempts from January to June of this year.

On the other hand, the ranking of SEA countries dynamically changes when it comes to the percentage of users infected by phishing attacks. In Kaspersky’s phishing statistics for the first half of 2019, it shows the Philippines has the highest percentage of phishing victims at 17.3 percent. The growth posted is a whopping 65.56 percent higher compared with the data for the same period last year at 10.449 percent.

Vietnam among top targets for phishing in Southeast Asia

Malaysia scored the second highest with 15.8 percent of users infected through phishing from 11.2 percent in the first half of 2018. Coming behind is Indonesia with 14.3 percent from 10.7 percent last year, Thailand at 11.9 percent from 10.9 percent, and Vietnam followed closely at 11.7 percent from 9.4 percent.

Singapore recorded 5 percent this year compared to 4.1 percent posted last year. 

Phishing attempts refer to the frequency that cybercriminals try to entice Kaspersky users to visit fraudulent websites to steal their information in particular regions and territories. Meanwhile, the percentage of infected users indicates the proportion of Kaspersky users targeted by these phishing attempts within a given timeframe.

“This old but effective threat is real in Southeast Asia and shows no signs of fading anytime soon. The region is composed of many young and highly-mobile populations and, admit or not, we need to educate them on the risks of basic attacks like phishing. It is an accepted fact that the young users will buy a new phone then think of securing it physically but never virtually. And as long as individuals will continue to let their guard down when using the internet, we can be sure that we’d keep on counting phishing victims again and again,” said Yeo Siang Tiong, General Manager for Southeast Asia at Kaspersky.

— VNS/VNA

‘Super-app’ race gets scorching hot

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Go-Viet is speeding up, ‘Be’ has launched more services, and MoMo has expressed its intention to join the race, while Grab has a new strategy.

After a period of quiet with unchanged services, high-ranking personnel restructuring and a recent strike by hundreds of drivers in HCMC, Go-Viet has returned to the racetrack.

“We will continue to improve and innovate solutions to meet the daily needs of people of Vietnam,” said Le Diep Kieu Trang, CEO of Go-Viet, on the occasion of the first anniversary of the app operation.

Go-Viet now has 125,000 partner drivers and has fulfilled 100 million trips. It witnessed the 400 percent growth rate in number of orders in the last 12 months of operation.

Meanwhile, food delivery sees a growth rate of 25-35 percent a month.

Go-Viet is striving for a ‘super app’, i.e. an app which can provide many essential services, for Vietnam, based on the successful model that Go-Jek, its holding company, is deploying in Indonesia, which has similar economic, social and population conditions.

Prior to that, in early August, Be introduced beExpress and beDelivery services. With the new services, the ecosystem of Be Group has expanded. It has transport service (beBike and beCar), goods delivery (beExpress and beDelivery) and finance service (beFinancial). Meanwhile, food delivery (beFood) is coming soon.

According to Tran Thanh Hai, CEO of Be Group, Be has 40,000 drivers and it has fulfilled 20 million trips since its launching in late 2018.

The name of the third player could be a surprise to many people. It is not Zalo, which is believed to have powerful financial capability and technical staff to develop a super app like WeChat in China. Instead, MoMo, established as a financial app, mentioned its ambition of becoming a super app in a meeting with the local press earlier this month.

Nguyen Manh Tuong, deputy chair of MoMo, said Google Play Sotre and Apple App Store do not know which group to put MoMo in. At first, MoMo was a financial app, but it has developed many features. Most recently, the app has done gameshows as well.

“MoMo once gave money to users to invite them to use services, but they refused. So, we think it would be better to offer some interesting entertainment to lure users,” Tuong said, adding that MoMo could be called a technology, finance and entertainment app.

Amid a series of moves from rivals, Grab, which brought the concept of ‘super-application’ into Vietnam and actively promoted it, has shown its strength. The platform has launched membership packages, or pre-paid services for the activities of travel, food and delivery which allow users to save up to 50 percent of real value.

Source:VNN

Regular sport is important for half of online customers in Vietnam

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On average, about half of users of today’s fin-tech services (48%) in Vietnam go in for sports monthly at a different frequency. Remarkably, regular weekly exercises are essential for about 22%.

These are the findings of Robocash Group based on its recent customer survey.

Health is one of the life priorities for people in Asia. The company has revealed that almost every fifth of its customers in Vietnam, Indonesia, India and the Philippines work out two or more times a week. With the Indonesians showing the highest discipline (23%), the Vietnamese are second (22%) followed by Filipinos (21%) and Indians (17%).

Regular sport is important for 48% of online customers in Vietnam

There is an interesting contrast in the types of sports activities favored by customers in different countries. Particularly, Vietnamese are fond of playing ball sports (42%): football, basketball, volleyball, tennis, etc. It makes them close to Filipinos (29%) and puts in contrast with Indonesians and Indians who put fitness first (36% and 39%, respectively). In Vietnam, fitness is only second (19%), while third place belongs to water sports (13%).

Commenting on the results of the poll, the analysts of Robocash Group added: “Overall, the main reason to use online financing services remains the same: it helps meeting current expenses. However, for different customers, the scope of regular needs maybe not limited by food and monthly payment bills. The survey has revealed that, on average, one out of four respondents used online financing for purposes related to sport at least once. It means that sport is gradually taking its place within the structure of regular expenses as a means of maintaining good health.”

Respectively, it is quite significant that almost every fifth among the respondents in Vietnam (18%) is planning to use online financing for sports purposes in the future. For example, to purchase the necessary sports equipment, pay for tickets to events etc.

—
Robocash Group is an international financial group operating in the segments of consumer alternative lending and marketplace funding in Europe and Asia. The company develops robotic financial services providing lending to customers in Russia, Kazakhstan, Spain, the Philippines, Indonesia, Vietnam and India and operates the own EU-based p2p investment platform. The group develops products completely in-house using artificial intelligence, machine learning and data-driven technologies to provide precise and comprehensive risk management, comfort and speed for customers and efficiency for business.

500 Startups Demo Day introduced promising Southeast Asian startups on the scene

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On Thursday, September 5, eleven “rising star” startups pitched their ideas to a room full of investors and entrepreneurs as part of the 500 Startups Demo Day, organized by venture capital fund 500 Startups Vietnam to highlight the promising startup environment in Vietnam and broader Southeast Asia. The event also featured a panel discussion and remarks by industry leaders on the development of Vietnam’s technology and startup ecosystem.

The startups presenting at the event included six graduates of Saola Accelerator, a program to support and mentor startups sponsored by 500 Startups in partnership with Korean retailer GS SHOP, and five other promising startups from the Southeast Asian region. These startups are involved in a variety of sectors, from agritech and micro-mobility to healthcare and digital payment. Each team was given 5 minutes to present its pitch to the room and had the opportunity to meet with interested investors and partners at a later networking event.

“These startups show that innovation from Vietnam and broader Southeast Asia can transform lives not only in the region but potentially around the world,” Eddie Thai, General Partner at 500 Startups Vietnam, observed. According to official statement from the event, these startups have collectively raised more than $30 million of venture financing and currently span more than 15 markets across Asia Pacific, North America, and Europe.

Prior to the presentations, a panel was held to discuss the potential for investment in Vietnam’s new technology scene. Panelists included Linh Thai (VinGroup Ventures), Yinglan Tan (Insignia Ventures Partners), Shuyin Tang (Patamar Capital), and Eddie Thai as moderator. According to the panelists, Vietnam’s potential has increased dramatically in the last 5-10 years; before that, Ms Tang said, “it was the dark ages.” This rapid rise has provided entrepreneurs and investors with tremendous opportunities, but also comes with many challenges. Ms Linh Thai, for example, argued that Vietnam has a “winner takes all” culture and is therefore prone to monopolies, and cautioned against investors inadvertently stifling competition in a quest to stimulate explosive growth.

Other highlights of the evening included remarks from Hoonsang Kim (GS SHOP), and Mary Tarnowka (American Chamber of Commerce – AmCham Vietnam), who announced the launch of an Entrepreneurship and Innovation Committee to help emerging startups engage with AmCham members and established businesses. Nguyen Nguyen, CEO of the startup Trusting Social, also shared his experiences growing a startup in Vietnam.

Since initial close in 2017, 500 Startups Vietnam has invested in more than 40 companies in fintech, edtech, logistics, and more. The portfolio companies have collectively raised more than US$170 million of additional capital. Batch 2 of the Saola Accelerator is open for applications. Each selected startup will receive US$100K cash investment, training and hands-on support from world-class experts.

6 Vietnamese women rescued from Chinese-run prostitution den in Philippine

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Police rescued 6 Vietnamese women from an alleged prostitution racket in Barangay San Antonio, Makati City, Philippine Wednesday night.

The entrapment operation also led to the arrest of 2 Chinese women suspected of trafficking women.

The Philippine’s National Capital Region Police Office (NCRPO) director Guillermo Eleazar said they were tipped off over a condominium unit being used as a prostitution den.

The victims reportedly entered the country as tourists and they later engaged in sex work, he said.

The operatives of NCRPO’s regional special operation unit also learned that Chinese nationals working at Philippine offshore gaming operators (POGOs) were patrons of the sex trade.

Transactions reportedly took place over a Chinese social media platform where the victims were sold at US$183 each. Male customers could also rent a room inside the condominium unit for US$87.

Police said the suspects will face charges for violating Republic Act 10364, which is also known as the Expanded Anti-Trafficking in Persons Act of 2012.

– With report from Fred Cipres, ABS-CBN News

Secrets Rich People Won’t Tell You

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Most of them weren’t always rolling in it. Here are tips from rich people on how to make your money matter.

We find investment ideas in everyday life
Foreign direct investment – FDI

After my wife got excited about the fact that Hanes sold its L’eggs panty hose in grocery stores, I figured that the company was on to something. I bought Hanes’s stock and watched it rise sixfold.—A manager of the Fidelity Magellan fund.

We accept risk in order to achieve success

I was working at AOL in the 1990s when the company let go of 300 people. I was one of them. The movie Titanic was coming out, so I took my rent money and had 500 T-shirts printed that read, ‘It sank. Get over it.’ If I didn’t sell those shirts, I was homeless. I sold 500 shirts in six hours and made five grand. Then I called USA Today and gave a reporter the story. I sold 10,000 shirts on the Web over the next two months and ultimately racked up 100 grand. That was my very first company.—Peter Shankman

We’re cheap—and proud of it
IGOR KISSELEV/ SHUTTERSTOCK

When you open up the paper and you see those coupons, it looks like dollar bills staring you in the face … It’s how I grew up. Why not?—Hilary Swank to talk-show host Kelly Ripa, on clipping coupons.

I go to the ATM only once a week and pay for everything with cash
CHAMPION STUDIO/ SHUTTERSTOCK

“That way, I’m forced to stay on a budget without counting pennies and saving receipts. I can spend only what is in my wallet. I turn it into a game where each week, I reduce my ATM withdrawal amount by $20 to determine how low I can really go.”—Alan Corey, author of A Million Bucks by 30

We’re just like you
T.MAX/ SHUTTERSTOCK

Millionaires tend to pay about $16—including tip—for a haircut at a traditional barbershop.—Researchers from the University of Georgia Survey Research Institute.

We invest on whims
ISTOCK/TERADAT SANTIVIVUT

During the spring of 2012, I read the Wall Street Journal and learned that Talbots was supposed to be acquired, but after the deal fell through, its stock fell nearly 50 percent in one day. That’s when I purchased $5,000 worth of Talbots stock. Its value increased by 50 percent that day, and I made the decision to sell it right then.—A partner at a prestigious Washington, DC, law firm.

We’re gutsy with our jobs

 

JACOB LUND/SHUTTERSTOCK

When negotiating a new salary, always end the negotiations with a request for a nine-month review, instead of the usual 12-month review. It always gets approved, and it gives you a three-month head start on a potential salary raise or bonus.—Alan Corey.

We’re not as smart as you think
Effective Management

It’s amazing how much smarter everyone thinks you are once you have money. Two days after I sold my company, I got asked to speak at a conference I had been trying desperately to speak at for six years.—Peter Shankman, entrepreneur and angel investor

We don’t quit until we get the deal
DRAGON IMAGES/ SHUTTERSTOCK

I once went all the way to the head of customer support at Dell over a problematic computer that was out of warranty, and I was shipped a new one the next day. If you are willing to go up the chain, you will very likely reach someone who is willing to bend the rules to rectify a complaint and fix the problem.—August Turak

- RD.com

Vietnam International Aviation Expo 2019 will be held in Ho Chi Minh City this November

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Vietnam International Aviation Expo (VIAexpo 2019), the country’s pioneering aviation exhibition to be held in Ho Chi Minh City on the 20th to 22nd November 2019 by Phoenix Trade Fairs at Tan Son Nhat Pavillon Convention Center.

According to a statement from the organizer about outlook on Vietnam and the current global aviation industry,  Vietnam’s aviation sector currently ranks fifth amongst ASEAN countries, one of the fastest growing aviation markets in the world. By the year 2030, Vietnam’s aviation stakeholders will plan to work on several projects which include the maintenance equipment upgrade for 23 domestic & international airports, improving on international MRO, investment in pilot training, aviation academy, as well as launching a Seaplane manufacture factory project.

The Vietnamese aviation industry has seen a strong growth of 17.4% over the past decade, making it one of the fastest growing aviation industries in the world. With companies like Bamboo Airways actively working to launch new airline services, and VietJet investing in an order of 325 new aircrafts, the aviation sector in Vietnam is looking to expand itself further in the next few years to come.

The global market is set to see a 30% increase in airplane passengers within the next 5 years. With the increasing air traffic, Vietnam is expecting a larger investment in Airport constructions, Aviation Academy expansion, Air Traffic enhancements, Aircraft maintenance, Logistic, Overhaul Capacity, Satellite and Service Development; all this a strategic plan to cope with the influx of new visitors to its country.

Providing a platform for Vietnam’s growing aviation market

Vietnam International Aviation Expo 2019 (VIAexpo) is the one-stop market for Vietnam’s Aviation & Aerospace community, showcasing the latest technology in the Aviation & Aerospace Industry. Vietnam International Aviation Expo 2019 offers a holistic business experience by combining exhibition, conferences and seminars, and a host of networking sessions that connects quality buyers to Aviation & Aerospace supplies.

With this, the Vietnam Ministries are providing their support and cooperation with the organising team to hold this exhibition in introducing to other countries about the Aviation market in Vietnam.

Registration is now open for exhibitors and visitors on the website www.vietnamaviationexpo.com or email  info@phoenixtradefairs.com.

Vietnam Insider is a proud media partner of Vietnam International Aviation Expo 2019.

How to get to Tan Son Nhat Pavillon Convention Center

Vietnam is pledging to import more US goods

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Move aims to damp down perceptions country is profiting unfairly from US-China trade war.

Featured image: Vietnam’s trade surplus with the US, its biggest export market, reached $39.5bn last year and is on track to set a new record this year © Reuters

Vietnam is pledging to import more US goods to placate Washington over its ballooning trade surplus and damp down perceptions that it is profiting unfairly from the US-China trade war, according to US and Vietnamese officials. 

In recent talks with US businesspeople and diplomats, Vietnamese officials have spoken of importing greater quantities of products including US coal, natural gas, meat, fruit and other agricultural products, the officials said. 

The talks come after US president Donald Trump, speaking to Fox News in June, called Vietnam “almost the single worst abuser of everybody” in regards to trade, raising fears in Hanoi that the country might be next on his administration’s list for punitive tariffs. 

Vietnam’s trade surplus with the US, its biggest export market, reached $39.5bn last year and is on track to set a new record this year. 

Energy imports, in particular, might make sense because Vietnam, one of Asia’s fastest-growing economies, is set to face a power supply crunch as soon as 2021 and is scrambling to shore up new generating capacity and fuel supplies. 

With China cutting off agricultural exports from the United States, regardless of how this turns out, what it says to us is that we need to diversify our markets

Pete Rickett, head of a US trade delegation

Some US companies, shut out of China by higher tariffs, are looking to Vietnam and other south-east Asian countries as alternative markets. In recent weeks goods rarely seen in Vietnam normally, such as US cherries and apples, have appeared in shops. 

Pete Rickett, Nebraska’s Republican governor, visited Hanoi this week at the head of a trade delegation that included Tyson Foods, the meat producer, Reinke Manufacturing, which makes irrigation systems, and cow and calf farmers. 

“With China cutting off agricultural exports from the United States, regardless of how this turns out, what it says to us is that we need to diversify our markets,” Mr Ricketts told the FT. “We want to look to see if we can develop other places for our farmers and ranchers to sell their products around south-east Asia.” 

Vietnam has been one of the main beneficiaries of the trade war because it produces many of the same goods hit by new US tariffs targeting China. The country has benefited from new investment, but also come under critical US scrutiny because of exporters who trans-ship goods from China and label them as “Made in Vietnam” to avoid tariffs. Hanoi says it is cracking down on the practice. 

The US in July imposed duties worth more than 400 per cent on steel made in Vietnam. Washington is also pressing Hanoi on regulatory issues, including its controversial cyber security law. 

Notwithstanding the trade tensions, the US and Vietnam are drawing closer politically because of their shared opposition to China’s drive to establish dominance in the South China Sea. 

Mr Trump invited Nguyen Phu Trong, Vietnam’s president and communist party general secretary, to pay an official visit to the US when he was in Hanoi in February. Mr Trong, who is 75, suffered a health scare earlier this year, and Vietnam’s government has not yet confirmed a date for the proposed trip. 

By: John Reed @ Financial Times

Pros and cons of investing in Vietnam’s property market: Insider’s view

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By Lawrence Young

One of the burning topics I am asked about frequently and I hear discussed with heated debate is the subject of property investment in Vietnam. So what’s it all about? Is it fraught with danger?

The answer isn’t simple. In July 2015, the Vietnamese Government introduced the Vietnamese Law on Residential Housing. So the main question to ask yourself is “do I wish to follow the rules that govern buying property here?”

Some of the basics to take into consideration is the idea of buying the structure but not the land it’s on. Currently a leasehold can only be obtained for 50 years in Vietnam. When you compare this to leasehold in the UK for circa 120 its quite short. Most mortgage companies won’t lend on a property in the UK if leasehold is less than 80 years and this is true in many countries.

Related: Why foreigners aren’t buying houses in Vietnam

There are other caveats such as only 30% of flats in any one particular build are available to foreign investors and 250 landed houses in one particular ward. So restrictions apply and you will very likely be buying the property outright as sourcing a mortgage in Vietnam is almost impossible. It can be done but you will be chasing your own tail. However, if you happen to have a Vietnamese spouse the rules do change rather dramatically.

Having a mortgage and leveraging on property will keep cashflow free as it is not all tied up in a tangible item that is not a liquid asset. This gives you more access to liquid cash to place in more investment opportunities. You can purchase property without the need for putting large amounts of cash up-front and mortgage backed property should become self-funding if the rental income is higher than the repayments. A major target for the savvy investor to make the numbers crunch.

One of the biggest frustrations appears to be the ongoing saga of obtaining the ownership certificate from any developer. This problem started kicking in during 2017 and some would say it is a thing of the past. Debatable.

The law states that foreigners cannot own properties in areas that are reserved to protect the national defense and security. And this is where the problem seems to have surfaced from. It is for the Ministry of National Defense of Public Security (“MNDPS”) to decide on what construes as property that would be affected under this law.

The MNDPS decides whether a property is in an area that is reserved to protect the national security which technically could be every square inch of Vietnam. It’s advisable to ascertain whether an ownership certificate is available and open to interpretation in the future.

If investment in Vietnam is still for you then some of the usual rules will apply. Start with a reservation agreement. If a deposit is involved check the agreement. If you pull out as a buyer that deposit will be kissed goodbye. If the seller pulls out, the agreement should have a clause that they pay double the deposit back. Not what you are looking for but does stop the seller from looking for a higher bid and gazumping you. Get your docs notarized to remove all doubt. Move onto due diligence and then exchange of contracts.

But how does Vietnam compare to property investment elsewhere?

Vietnam is a frontier market now going through a period of economic growth in the high-6% range. Given the trade war between USA and China, Vietnam is well-positioned to attract multinational firms which are increasingly worried about China’s stability amid tariffs.

The best places to invest are those with favorable demographics, and fair asset prices. Other well established jurisdictions already have good existing infrastructures, great demographics and under priced asset values. Or at least currencies that are devalued.

The UK for example has lost 30% of its currency value in recent years so using a cross currency deal exchanging USD (Or a suitable currency) for a UK property might seem like a good idea right now. You should receive good property appreciation values and a future FX win if we believe that GBP will strengthen again in the future.

We all wish to be the “king of our own castle,” and for some that may be unobtainable with global prices. Getting on the property ladder for many of the world’s population will never happen. But for those with liquidity, Vietnam may well be an attractive place to invest. Its what is around the corner that deserves most scrutiny.

Me? I’ll stick with renting for now.

About Lawrence Young
Lawrence Young, The Author

Originally from the United Kingdom, Lawrence went on to further his career where he spent 14 years in Luxembourg working for financial institutions such as JP Morgan. During that period in Luxembourg he worked as an interbank money broker trading multiple currencies for large banking institutions including interest rate swaps. He also traded Eurobonds in both the primary and secondary markets and stock broking. More recently Lawrence spent 8 years working in Jersey, the Channel Islands for Lloyds TSB where he accounted for £1.2 billion of funds under management across 7 of Lloyds TSB’s retail funds. He is a Fellow of the Securities and Investment Institute, FSI (Chartered) and has qualifications under the Association for Certified Chartered Accountants (ACCA). Lawrence has also gained qualifications under the Malaysian Insurance Institute and continues to complete annually, continuous progressive development quotas in the UK due to his membership in the institutes and associations mentioned above.

He is also regulated by the regulatory authorities of all of the jurisdictions that Holborn conduct business in globally. Since leaving the Channel Islands, Lawrence joined the Holborn Group and is now based in our Vietnam office with a portfolio of clients that truly spans the globe and which has been built up over the last three decades. His areas of expertise lie in personal, lump sum or regular monthly premium tax free savings structures, global investment property, higher education fee planning, inheritance tax issues, frozen and open pension planning through ROPS or SIPP’s, life and general insurance, will writing services and offshore company formation and banking.

Vietnam police officer helps woman frame boyfriend with planted drugs: police

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A former Vietnamese policewoman allegedly received VND1 billion (US$43,000) while she was still in the force to help a woman plant heroin in her boyfriend’s car and put him in prison, Hanoi police said on Thursday.

Police in the Vietnamese capital city said that they had requested the indictment of Nguyen Thi Vung, a former officer of the anti-trafficking department under the Ministry of Public Security, for “narcotics stockpiling” and “slander.”

Vung played the role of an accomplice that actively helped a local woman frame her boyfriend with planted drugs in a false arrest case in 2016, Hanoi police said, adding that the former policewoman was driven by a motive for personal gain.

Nguyen Thi Van, 37, and Nguyen Van Thien, 44, were involved in a romantic relationship when conflict between them led Van to seek advice from Vung, a friend of hers, to have Thien arrested in 2016.

Van agreed to pay Vung VND1 billion ($43,000) for her help with supplying the narcotics that the woman eventually placed in Thien’s car, unbeknownst to her boyfriend.

As part of the agreement, the policewoman also alerted police officers to search the man’s vehicle after the illegal drugs had been planted.

The transaction was disguised as a repayment of a loan that Van had taken from Vung.

Thien was arrested on October 28, 2016 and released one week later after police found no evidence to suggest he had anything to do with the heroin found in his car.

The crime of stockpiling 0.1-5 grams of heroin carries a prison term of up to five years, according to the Penal Code of Vietnam.

After his release, Thien spent months collecting evidence, including chat messages and recordings of phone conversations between Van and Vung discussing their plot, and submitted it to police investigators.

After examining these pieces of evidence, Hanoi police concluded that Van was the mastermind of the crime plot, while Vung played an active role in helping Van succeed with her plan.

Police in Nam Tu Liem District, police officers launched a criminal investigation against Van for “stockpiling narcotics” and “slander” in April 2018.

Vung, who was already dismissed from the police force and stripped of all her ranks, has been arrested and placed under criminal investigation on the same charges.

The policewoman has so far denied any wrongdoing.

Source: Tuoitrenews

Foreigners make up 90 percent of e-wallet market share

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E-wallets are believed to be a very promising business field in Vietnam, but the market is now controlled by foreign firms.

According to Nghiem Thanh Son, deputy director of the Payment Department, Vietnam’s fintech has witnessed robust growth recently. The payment via mobile banking services grew by 160 percent Q2, higher than the growth rate of 60 percent in region and 80 percent in Thailand.

SBV reported that the number of fintechs providing services in the Vietnamese market has doubled, from 40 companies in late 2016 to 100 now. Most of them are in the payment sector with 27 companies licensed by SBV.

There are great advantages for fintechs to develop in Vietnam. The Vietnamese population is relatively high compared with other regional countries, 97 million people, and 65 percent of them live in rural areas, where the banking network remains thin.

Vietnam is among the countries with developed telecommunication infrastructure. It is one of the countries with the highest number of internet users, accounting for 52 percent of population. 51 million people use smartphones, or 55 percent of the population.

All these factors show great advantages for fintech firms. However, there is a big disadvantage in the legal framework which remains controversial.

Some experts pointed out that the development of fintechs could be affected by the regulation on the foreign ownership ratio ceiling.

The presence of foreign investors in Vietnam’s fintech sector could bring positive effects. According to the Vietnam Association of Financial Investors (VAFI), fintechs need huge foreign capital to invest in technology and human resources development.

The government now allows 100 percent foreign owned banks in Vietnam and it is considering lifting the foreign ownership ratio ceiling in Vietnam banks. Will this occur in the fintech sector?

According to Son, the central bank plans the ceiling of 30 percent for foreign ownership. However, no final decision has been made.

The high ranking official said it is necessary to set a cap on the foreign ownership ratio. There are 27 e-wallets now operational in the market, but 90 percent of the market share is being controlled by five intermediary payment firms and all of them are foreign invested. The foreign ownership ratios in the five firms are between 30 and 90 percent.

This raises concerns that the payment sector and the monetary market may be controlled by foreign investors. If so, national policies and data security may be in danger.

Son went on to say that the ultimate goal of the watchdog agency is to ensure benefits for users. However, the central bank will also try to create a legal framework that is reasonable and flexible that it will encourage reform and creativity.

Source: VNN

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