Most of customers in Vietnam prefer online financing

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According to a customer survey conducted by Robocash Group in India, Indonesia, the Philippines and Vietnam, speed of service is the key advantage of online financing tools stated by 50.4% of users.

The difference between the four countries is relatively small. However, respondents in Vietnam have shown a higher interest in this feature – 53%, which is three points more than the average rate. Meantime, Indonesia, India and the Philippines have 56%, 48% and 45%, respectively.

Remarkably, respondents in Vietnam have paid much more attention to the convenience of fintech services at use. The possibility to use the service 24/7 supported by multiple ways to obtain cash have higher significance for customers in Vietnam than in Indonesia and the Philippines. Thus, 17.6% of local respondents consider round-the-clock operation first. Comfort at availing the funds is important for 13.7%. Although the latter equals the share of voices for a higher probability of approval (13.7%), which is a part of the accessibility factor, altogether they complement significantly to the speed of service.

The company statistics show that a lot of customers of relevant services are residents of rural areas. In many cases, they are self-employed or employed informally, and few of them have some credit history. In this respect, the possibility to get formal financial assistance looks positive by itself.

Commenting on the findings, the analysts of the Robocash Group added: “The findings have confirmed that quick elimination of gaps in a family or personal budget is the most common purpose of short-term online advances. That is why top priority is the speed of service. It also correlates with the main reason to apply for financing. For most customers, daily needs and regular monthly payments make the largest and most important part of family expenses. In particular, one-third of respondents (30.6%) spend most of their budget on food, fare payment etc. Then, monthly bills for housing and utility service, mobile phones, TV etc. make the largest spending for almost every fourth customer (24.5%). These are very cases requiring instant payment in the first turn.”

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.

Google set to move its Pixel production to Vietnam from China

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Google is set to move production of the Pixel from China to Vietnam amid the growing US-China trade war. Damien Wilde reports.

It’s unclear whether this move will affect the production of the upcoming and recently leaked Google Pixel 4. Nikkei reports that Google has started work on converting an old Nokia smartphone plant in the northern Vietnamese province of Bac Ninh into a production hub for Pixel phones.

According to a report from Japanese news outlet Nikkei, this also happens to be the very same region where Samsung developed its smartphone supply chain over the past decade, which means that Google will have direct access to a ready supply of skilled workers. Moving Pixel production from China to Vietnam makes sense due to the ongoing pressure placed upon Google with higher Chinese labor costs and increasing tariffs — the result of the ongoing trade dispute between the US and China.

Google is aiming to boost production and ship between 8 million and 10 million smartphones before the end of 2019. This is around double the production level from a year ago, according to the Nikkei report. When you consider that Google has not yet reached the top 10 for global smartphone shipments, this is a big move to help gain a further foothold within the industry.

The Pixel 3a was a roaring success and has helped Google to nearly 90% year-on-year growth in the US market alone in 2019. Increasing production but lowering the associated costs would help Google’s further push into the smartphone industry and tackle the biggest players. Production of the Pixel 3a is also set to move from China to Vietnam by the end of the year.

Given the proximity to the launch of the Pixel 4 and Pixel 4 XL, it seems unlikely that we will see this next wave of Made by Google devices manufactured in Vietnam rather than China.

Adding plastics to the circular economy

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The plastics industry is a responsible partner to policymakers and other stakeholders, working together to find solutions to the challenges of climate change, energy and resource efficiency, consumer protection, and the circular economy. Miguel Santos, CEO of Green and Circular Economy Investments, writes about going head-to-head with the issue of plastic recycling.

It was in pre-Columbian Mexico that polymers were used for the first time, evolving to the present day. Initially the industry developed synthetic polymers with cellulose and later with the use of petroleum. This evolution allowed polymers to be easier to produce, making it an essential and indispensable material for all forms of use.

Plastic is possibly one of mankind’s best discoveries, but the problem is in the way we produce and consume it. From as far back as 1960, there began to be an awareness of the plastic waste associated with environmental problems.

It is estimated that millions of tonnes of plastics are introduced daily into nature, with very high impact costs on ecosystems, the economy, and health. Plastics production requires enormous pressure on nature, due to the extraction of high amounts of petroleum to transport to production sites and in the production of petrochemicals where pollution reaches a large scale through the production of energy, ethylene, or soil contamination. Plastic waste represents the end of the product´s life.

There are few materials available that do not contain a percentage of plastic. All materials have a useful lifetime in the hands of consumers, and then are abandoned in nature or deposited in dump bins.

Contrary to what one might think, it is not only when abandoned in nature that plastics are harmful to the environment and health. Simply thrown into bins only removes plastic waste from the human view in its original form. It then goes into the incineration processes, or landfills, or into rivers and oceans. In the case of oceans, the currents concentrate the plastic in five distinct areas of the planet. To stop the problem, a plan is underway to rid the ocean of these plastics.

Identified as a key priority in the European Commission Action Plan on the Circular Economy, the plan has the potential to bring new opportunities for innovation, boost countries’ competitiveness, and create new jobs, if facilitated and driven by enabling policy frameworks. Worldwide problems, such as waste and pollution harming ecosystems and fisheries, filling up landfills, clogging urban water systems, have contributed to global warming, and have negative impacts on human health.

Blocs working together

As a hotspot for these issues, Southeast Asia’s contribution to plastic pollution of the oceans over recent years has steadily increased. Tackling the problem by addressing changes in policy and legislation on plastics are seen as the most efficient ways to bring solutions.

With longstanding experience on waste management and the circular economy, in its recently adopted Plastics Strategy, the European Union has committed to assisting other regions in shifting towards a circular economy for plastics.

Both regions, the ASEAN and the EU, have jointly agreed to collaborate finding a solution and tackling these issues. Under this collaborative framework, the EU and the ASEAN Secretariats launched a regional gap-analysis on the state of the circular economy for plastics across ASEAN member states. The analysis, conducted by a team of experts from the Institute for Global Environmental Strategies with support from the EU, developed a knowledge base for follow-up actions by the EU to inspire and assist circular economy approaches to plastic issues in the Southeast Asian region.

It is important to facilitate the negotiation of a regional framework agreement and the development of regional circular economy guidelines for plastic pollution, followed by the support to develop technical standards for plastics, recycled plastics, and products made of plastics.

The sectoral dialogue on the circular economy in the region will be further enhanced through the sharing of EU experiences on waste and plastic strategy in alignment with the upcoming Partnership Instrument project on marine litter, and in advising interested ASEAN members on changes in policy and legislation on plastics, plastic waste, and single-use plastics.

Innovative answers

In 2013 the Ocean Cleanup, a non-governmental environmental organisation headquartered in the Netherlands, was founded by Boyan Slat, a Dutch inventor, entrepreneur and aerospace engineering student. The main goal of the team was the development of a technology capable of extracting plastics and derivatives from the oceans. System 001 or “Wilson”, the first system, was implemented in the Great Pacific Garbage Patch last year between California and Hawaii, with the particularity of being a passive system – that is, it accompanies the ocean currents in order to capture the plastic that circulated while drifting in the oceans.

This innovative system is unique on the planet, as it is composed of a float about 600 metres long and an attached skirt at the bottom with three metres’ depth. The float tube stabilises the system and prevents the garbage from rising and the skirt does not allow it to leave, ensuring the plastic is accumulated inside the U-shaped system.

Given that the method and technology used is in constant development, the engineers of the Ocean Cleanup recently encountered some problems. System 001 did not maintain enough speed, causing some plastic to leave the system again. To solve this, a new design without stabiliser frames, system 001/B, was released in June. Ocean Cleanup aims to clean approximately 50 per cent of the Great Pacific Garbage Patch within the next five years.

After initial studies of the plastic taken from the ocean, the Ocean Cleanup team concluded that it can be recycled and transformed into products with high quality, using recycling and introducing plastics into a circular economy. In the perspective of framing recycling into an economic model, it is found that it presents in its genesis strong roots based on the circular economy model.

The circular economy breaks with the linear economy in the repetitive reuse of products and raw materials, with recycling fitting perfectly as one of the first stages of the closed-loop process.

By recycling plastic at the end of its life cycle into new and reusable plastic to re-enter production lines and transforming it into final products and consumables, we are talking about a circular economy.

Recycling is an alternative process to the production of plastics in origin offering environmental and economic gains. The German company Krones AG, which specialises in supplying bottling and packaging lines for the beverage industry, developed in 2006 a highly-effective technology for recycling of polyethylene terephthalate, a form of polyester.

The technology presented by Krones is based on state-of-the-art plastics recycling, with the ability to recycle full-use, food-grade decontaminated flakes or pellets in accordance with the US Food and Drug Administration and other quality certificates.

The installation of these methods is important because of the pressures that plastic use is putting on the environment and human health. Plastic recycling largely avoids the release of greenhouse gases as a certain percentage of virgin material can be substituted by recycled material. The reduction of greenhouse gases could be even higher if the recycling plant is equipped with systems for reusing process water and power generation backed (partly) by renewable energies.

Collection and recycling of plastics helps to reduce the pollution of oceans, beaches, fields, and urban areas as the plastic cannot spread uncontrolled. The decontaminated plastic solution presented by Krones, however, is thus far unique in the market.

When analysing the recycling industry, it can be concluded that it is an excellent investment strategy for both the present and future. This type of investment has the particularity of adding value based on the use of waste, allowing for the creation of low-cost plastics production for internal and external consumption. It is usually cheaper to reuse materials than produce them from origin. Due to the future race of the beverage industry for the acquisition of recycled plastic to improve the environment and the economy, the recycling of plastics can certainly be an investment with a financial return for its investors in the short-to-medium term, and a true transition from the linear to the circular economy model.

Vietnam, as well as all countries on the planet, currently faces pollution challenges and the effects of climate change, creating difficulties for its population and the economy. Funding plastic recycling will always be an investment with two very positive impacts – the environmental, because it aims to eliminate the waste of plastics that harm the planet; and the economic, which stimulates growth with the introduction of a new industry with capacity to create employment and wealth.

The environmental battles are real and urgent, and they are beginning to be solved or minimised with these initiatives and industry, leveraging scientific knowledge for the development of new innovative technologies.

Source: VIR

China uses militia at Vanguard Bank

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Few people have paid attention to the tensions at the Tu Chinh (Vanguard) Bank – the presence of Chinese maritime militia at Hoang Sa (Paracel Islands), together with marine surveillance vessels which have worked as the main force.

China’s conspiracy

The use of marine militia is an important part of the grey zone strategy, which is the key to help China control the field in the East Sea.

‘Grey zone’ is a strategy often used by big countries with powerful resources to gain targeted benefits without having to use force in a large and direct way.

There are two typical characteristics of the strategy.

First, they do not let conflicts go beyond a threshold. They control conflict at a moderate level, trying to both put pressure on opponents, and control risks in the field in an acceptable way.

Second, they take small steps. China thinks that if it makes gradual steps forward, this will not create the risk of military reaction, but it can step by step change the situation of dispute in a way which brings benefits to it. Eventually, territorial disputes cannot be resolved overnight. For China, the longer it lasts, the better it is.

The Chinese maritime militia is built as a separate branch of the armed forces. China’s 2013 National Defence White Paper pointed out that the militia is the supporting and substitute force for the army.

The marine militia has several basic tasks: (1) protecting sovereignty; (2) conducting reconnaissance patrols; (3) coordinating with marine law enforcement forces; (4) participating in rescue operations and (5) supporting fighting.

China has made heavy investment in a marine militia. The marine militias called the Sansha are professional forces and play an important role in the East Sea. They are equipped with appropriate personal weapons, are able to use modern ships, and are well paid.

Since early 2016, China has spent $1.5million a year to encourage fishermen to move to more permanent settlements on the islands in the context of declining fish stocks and income.

Fishermen on the islands are paid depending on the areas where they live. Each fisherman at Crescent Group, for example, receives$6.79 a day if they are present on the islands for at least 180 days a year. Those who live on Mischief Reef for 150 days a year can receive $12.07 a day.

Currently, there are six marine militia units on Hoang Sa with about 1,800 people and 100 fishing vessels. Fishermen also participate in ‘law enforcement groups’ consisting of 30 members and 5 ships.

As of June 2015, the marine militia there had conducted a total of 228 missions of providing information, casting out foreign fishing vessels, preventing foreigners from approaching the islands, and implementing the protection of the so-called ‘China’s rights and interests on the sea’.

The Chinese government has established on Vietnam’s Hoang Sa Islands a fleet of fishing vessels and marine militia, capable of operating offshore in the name of the government. A fisheries development company was established in February 2015. The whole company is called a big unit, while member companies or organizations are organized in companies, production teams in platoons, while each ship is a squad.

One can see that China has invested very well in the marine militia force. Since 2010, the force has been present in most notable clashes in the East Sea between China and concerned nations, from the harassment of the American Impeccable ship in 2009, to the capture of Scaborough Shoal in 2012 and the deployment of HD-981 drilling rig in 2014. And the force was also present at the conflict at Vanguard Bank.

What should Vietnam do?

While the US is still thinking about how to deal with the grey zone strategy, Vietnam is also trying to find ways to deal with the unpleasant strategy. Vietnam has successfully modernized the marine police force and is also making every effort to build up a fleet of fishing vessels capable of protecting the sovereignty.

In 2009, the National Assembly passed the Civil Defense Law, paving the way for the legalization of marine militia. Project 1902 approved in 2010 built a pilot model for marine militia, under which local young men were chosen to set up marine militia platoons.

The project says clearly that marine militia “both carries out production activities and observation”, and when discovering illegal activities, it has to “coordinate with appropriate forces”.

After the Chinese HD-981 deployment in 2014, the state accelerated the support of fishermen to build “modern equipment, modern technology” to be capable of both ensuring the exploitation of resources and serving the national defence activities. The Project 67 was approved.

Many fishing vessels have a shell made of wood and composites, but there are not many steel ships. As such, Vietnam has to increase the number of steel-shell vessels in the future.

The biggest difficulty in implementing Project 67 is the lack of capital. Capital is needed to build new ships, to maintain ships’ operation and to build supporting works that fit the number and quality of new vessels.

To deal with the grey zone strategy, the most effective way is to encourage fishermen to go to the sea with modern fishing vessels. At the same time, Vietnam needs to legalize the law enforcement forces which protect fishermen and implement Vietnam’s sovereignty and jurisdiction rights in sovereign waters.

Source: VNN

Central bank warns against high deposit rates

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The central bank has threatened to sanction banks offering high interest rates on deposits fearing a race could destabilize the banking sector.
Some lenders, like Viet Capital Bank, have announced deposit rates as high as 10.2 percent. The rates at the beginning of the year were around 8-9 percent.

Interest rate hikes threaten the stability and health of the banking system, creating a negative sentiment, and could potentially lead to an interest rate race that destabilizes the currency market, said State Bank of Vietnam (SBV) Governor Le Minh Hung.

The SBV Wednesday issued a circular instructing banks to strictly control how they raise capital, saying that some institutions have increased interest rates for current accounts and/or offering high interest rates for deposits in Vietnamese dong.

The central bank will “monitor the situation closely and strictly handle violations”, including lowering credit growth ceilings of violating credit institutions, said Hung.

Banks must maintain reasonable interest rates within their ability to balance capital without affecting the stability and general interest rate level in the market, he added.

Economist Nguyen Tri Hieu had told VnExpress International that the main reason banks have been rushing to raise capital is that they have to balance and restructure their capital to comply with new regulations on credit safety limits.

A central bank regulation which came into effect this year requires banks to restrict the use of short-term deposits for issuing medium and long-term loans to 40 percent, down from 45 percent in 2018.

Vietnam’s central bank controls credit growth among commercial banks. For instance, state-owned lender Vietcombank’s “credit room” is 15 percent this year, while OceanBank which the SBV acquired for zero dong is given 20 percent.

Credit growth of the whole system was 7.33 percent in the first six months of 2019, given the SBV’s target of maintaining it at 14 percent this year, according to SBV statistics.

Source: Vnexpress

Hanoi police confirm boy dies of thermic shock in school bus

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Hanoi police have confirmed that the boy at Gateway School died from suffocation after being left in a school bus.

In a report sent to the National Assembly’s inspection team on Monday, deputy director of Hanoi Department of Public Security, Nguyen Thanh Tung said that the first-grader Le Hoang Long at Gateway School died from respiratory failure and thermic shock after being left in the school bus on August 6.

“Forensic tests showed that there was no action from outside,” Tung said. “The boy died between 9-12 hours before being taken for the test.” Tung said.

The official also said that they were still making clear why the boy was wearing a white T-shirt when being found dead, while he wore a red T-shirt with the school’s logo earlier that morning.

“The red T-shirt was found wet in his schoolbag,” Tung said. “We’re carrying out further tests to find out the DNA left on it.”

“We’re also collecting more information to define the violations of the bus driver,” he added.

The same day, Nguyen Thi Bich Quy, 55, who is in charge of supervising the students on the vehicle was detained for three months for the investigation.

According to a report released earlier at a press conference by the Cau Giay District People’s Committee, Le Hoang Long, 6, from Gateway International School was found dead in the school bus at around 4 pm on August 6 by Nguyen Thi Bich Quy.

The vehicle with 13 students arrived at the school at 7:25 am. After the students got out to go to their class, Long was left behind, with Quy and the driver unaware.

The bus was then driven to a parking lot in the district.

Long’s teacher Nguyen Thi Thuy checked the student attendance at 7:50 am and noted his absence, but she did not call the parents, the report said.

Only at 4 pm when collecting the bus to take pupils back home, did Quy discover Long lying on the car floor right behind the steering wheel.

The boy was given with first aid at the school medical room and then taken to E Hospital. But doctors at E Hospital said that the boy had died long before being brought to the hospital.

However, there have been rumours that the boy died from other causes not due to thermic shock on the bus because of the change of the T-shirt he wore.

In a meeting with a lawyer, Quy also said there were some strange things in the bus. First was the appearance of a balloon near the body of the boy while that had not been present in the morning. All the curtains were closed while they had been opened in the morning.

Source: Dtinews

Storm Podul to bring downpours to northern, north-central Vietnam ahead of National Day

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This year’s fourth tropical storm has entered the East Vietnam Sea and is forecast to make landfall in north-central provinces later this week.

According to the National Center for Hydro-meteorological Forecasting, Tropical Storm Podul was located about 620 kilometers east of Vietnam’s Hoang Sa (Paracel) archipelago as of 7:00 am on Wednesday.

Average wind speed was recorded at 60 to 75km per hour, with gusts at up to 100km an hour.

The storm will travel westward in the next 24 hours as it picks up strength and is expected to hit Hoang Sa on Thursday morning, unleashing winds blowing at between 60 and 90km per hour.

As of 7:00 am on Friday, Podul will be located south of China’s Hainan Island, with winds increasing to between 75 and 100km an hour.

It is expected to make landfall on the coastline between Thanh Hoa and Quang Binh Provinces in north-central Vietnam later the same day, before weakening into a tropical depression.

Under the influence of the storm and its circulation, rough seas and strong waves will occur along the coast in northern and central provinces.

Heavy rains will dampen northern and north-central Vietnam from August 31 to September 2 and are likely to affect the holiday marking the country’s National Day (September 2).

Rain of milder intensity is in the forecast in the localities between the central city of Da Nang and the south-central province of Binh Thuan during this period.

In the Central Highlands and southern provinces, it will rain mainly in the evening.

Source: Tuoitrenews

First Self-Storage Company is Open for Business in Vietnam’s HCMC

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MyStorage, Ho Chi Minh City’s first self-storage facility, has officially opened to meet the increasing need for “mini storage” in the country.

With Vietnam’s rising economic growth, high urbanisation rates and consequently less space, the need for storage solutions is emerging rapidly in the country. MyStorage takes advantage of this trend and has opened Ho Chi Minh City’s first self storage facility.

The company offers different types of storage to meet the needs of the local population, including private self storage units ranging from 1 to 3.5 cubic meters, private self storage lockers and a warehouse for full service storage. MyStorage also offers free pickup and delivery as well as complementary plastic storage bins when booking the service. In addition, the facility is fully air-conditioned, which is essential in Saigon’s hot and humid environment, highly secure with 24 hour camera surveillance and restricted fingerprint access.

Customers can book the service via the company website mystorage.vn, email or telephone. Staff is able to help customers who speak English, Vietnamese or German.

MyStorage serves business clients as well as consumers with its service. Target groups include the growing Vietnamese middle class, who are becoming more affluent and moving into Vietnam’s mega cities, small businesses who need storage for their inventory or documents, as well as expats who move to or within the city.

“More people move are moving to urban areas such as Saigon or Hanoi and the space in a one or two bedroom apartment is often limited. MyStorage offers these customers a solution to securely store valuable belongings and not have to use their homes as storage space. We believe in the growth of the country and that the modern, digital, urban Vietnamese will develop a need for storage as their peers in New York or Berlin have done.’ Aric Austin, founder and CEO of the company told Vietnam Insider.

MyStorage opened its first facility in Ho Chi Minh City in July 2019 and has plans to expand to further Vietnamese cities in early 2020.

Vietnam Airlines will offer Wi-Fi on certain flights in October

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National flag carrier Vietnam Airlines said it would offer Wi-Fi on some of its Airbus A350 aircraft from October 10.
The cost will range from $8 to $10 depending on whether passengers want to text, email or surf the web. Vnexpress International reports.

There are 4 of 14 Airbus A350s that Vietnam Airlines is exploiting the manufacturer to arrange WiFi transmitters before they are shipped – Photo: TUAN PHUNG

Nguyen Nam Tien, deputy head of the carrier’s IT department, told the press on Tuesday the satellite service is more expensive and slower than ground-based systems, but Vietnam’s infrastructure is not developed enough for the latter option.

Swiss company SITAONAIR will be the service provider.

Applications like Viber and Facebook Messenger will work normally in the air, but surfing and emails might be slow because they depend on the traffic.

The Wi-Fi will be turned on when the aircraft reaches an altitude of 10,000 feet.

Tien said the service would be provided on four aircraft to start with before more are added soon.

Duong Tri Thanh, Vietnam Airlines’ CEO, said at the 2019 Vietnam ICT Summit last Friday that the move is part of a strategy to become a digital airline by 2020 and an international five-star airline in the future.

Later 20 other aircraft would offer the Wi-Fi service, he said.

In the last few years many airlines around the world have begun providing onboard Internet services, though none in Vietnam.

The country’s largest airline by passengers has been facing rising competition from private budget carrier Vietjet and others like the latest player Bamboo Airways.

Vietnam Airlines has a nearly 51 percent of the domestic market share if its affiliates Jetstar Pacific and VASCO are taken into account.

By Sen.

Vietnam Airlines employee returns lost bags to passengers

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An employee of Vietnam Airport Ground Services Company Limited (VIAGS), a subsidiary of Vietnam Airlines, has found and returned assets worth nearly VNĐ1 billion (US$43,000) to two passengers. Vietnamnews reports.

Last Saturday, while cleaning an aircraft after flight SQ186 landed at Tân Sơn Nhất International Airport, employee Phùng Thị Ngọc saw two bags left behind on the Singapore Airlines flight from Singapore to HCM City.

Ngọc immediately informed the company, which was able to quickly identify the passengers – one Vietnamese and one from Singapore – and return the lost items.

Inside the two bags, there was more than 50,000 Singapore dollars, nearly VNĐ2 million, two expensive smartphones and some identification papers. In total, the forgotten items valued nearly VNĐ1 billion.

Since the beginning of this year, Ngọc has discovered 12 lost items and returned them to passengers, reuniting fliers with their cash, ID papers, cosmetics, jewellery, phones and more.

In the first seven months of 2019, VIAGS employees discovered and returned nearly 8,000 items and VNĐ8.4 billion in cash to passengers. In July alone, VIAGS returned nearly 1,300 items and VNĐ1.7 billion. — VNS

 

Grab will invest $500 million in Vietnam over the next five years

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Southeast Asian ride-hailing giant Grab said Wednesday it will invest $500 million in Vietnam over the next five years to expand its services in the country. CNBC reports.

Ride-hailing firm Grab announced on Wednesday it will invest $500 million in Vietnam over the next five years to expand its services in the Southeast Asian country.

The company will expand its transport, food and payments networks in the country, Grab said in a statement.

“This investment is a reflection of our redoubled commitment to Vietnam,” said Russell Cohen, Head of Regional Operations of Grab.

“The country’s rapidly developing economy and emerging middle class population makes it ripe for the adoption of digital services,” he said.

Vietnam vibrant with merger and acquisition activities

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The merger and acquisition (M&A) scene in Vietnam has become increasingly active with more domestic firms setting up ties with global partners so their brands can reach global customers and develop domestically.

According to the Ministry of Planning and Investment, the value of M&A deals in the country hit 5.43 billion USD during January-July, and the value will surge to 6.7 billion USD for the whole year.

The Southeast Asian country has become a top destination for M&A deals for investors from the Republic of Korea (RoK), China’s Hong Kong, Singapore and Japan as Asian multinationals see the benefits of a presence in one of the region’s fastest-growing economies.

Korean investors have dominated the M&A market in the Southeast Asian country, the M&A Vietnam Forum (MAF)’s M&A report showed.

Conglomerate SK Group signed a billion dollar deal with Vingroup in May to acquire 154.3 million primary shares in Vingroup and 51.4 million shares of the firm’s Vincommerce for 1 billion USD. After the transaction, SK would own a 6 percent stake and become a strategic partner of the Vietnamese real estate, tech, retail and services giant.

The company also expressed its interest in purchasing additional shares of the PetroVietnam Oil Corporation (PVOIL) after buying 3.55 million shares in the firm last year.

Furthermore, Shinhan Card bought Prudential Vietnam Finance Company Limited at 151 million USD, while Samsung SDS has pledged to purchase a 25 percent stake of CMC, Vietnam’s leading information technology service provider.

Hong Kong was also a notable investor in the first half as it landed 5.3 billion USD in Vietnam. Particularly, Hong Kong’s Beerco Limited spent 3.85 billion USD on acquiring stake in Vietnam Beverage Co., Ltd, a local unit of Thai Beverage Public Co., Ltd.

As for Singaporean investors, they were the third largest acquirers of M&A in Vietnam with deals worth 1.6 billion USD during 2018-2019.

The Singaporean government’s GIC Private Limited spent 1.3 billion USD to buy shares and provide debt instruments for Vingroup’s Vinhomes in April. Last year, the fund acquired 51.9 million shares at Masan Corporation for 196 million USD.

Other renowned businesses in Singapore like Keppel Land, CapitaLand and Mapletree have been involved in a variety of M&A deals in the Vietnamese real estate market.

Meanwhile, many domestic firms have also used M&A deals to consolidate their position in the domestic market. Outstanding deals include Saigon Co.op buying 15 retail stores and an e-commerce platform of French-based Auchan Retail, Thaco buying 70 million shares of Hoang Anh Gia Lai Agricultural Company (HNG) and Vingroup acquiring the Fivimart supermarket chain.

Deputy General Director of Saigon Co.op Nguyen Anh Duc said the takeover of Auchan is a sound M&A deal as most Auchan supermarkets have good locations, and this helps Saigon Co.op expand.

Meanwhile, Managing Director for KPMG Japan Masahiro Kotaka, who has spent eight years coordinating with Japanese enterprises on M&A deals in Vietnam, said M&A doesn’t just mean a change in ownership, but it also serves as a lever for firms to grow stronger and improve competitive capacity.

However, several experts pointed out challenges that hamper M&A activities in Vietnam, including land use right after M&A and valuation of State-owned enterprises for equitisation.

Deputy Minister of Planning and Investment Vu Dai Thang said the Vietnamese Government will study policies to boost M&A activities in the nation, saying the amended Business Law is expected to protect the rights of shareholders and investors, as well as lure more foreign investment.

According to a report on VNA

Vietnam considers international suggestions for plastic waste control

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Although there is no common formula suitable to all countries, Vietnam still needs to exploit the support and experience of many countries around the world to successfully implement a program on controlling ocean plastic waste, experts say.

According to AlphaBeta, in 2017, Vietnam had 2.26 million tons of plastic waste, higher than the 1.8 million tons announced by FAO in June 2019.

Of this, only 1.22 million tons, or 54 percent of the volume of plastic waste, was collected, while the remaining 1.04 million tons was abandoned, affecting the environment in land and ocean.

Meanwhile, not all the collected plastic waste could be treated or recycled immediately. Because of the problems in the process of collection, transportation and recycling, 13 percent of collected waste, or 160,000 tonsmay come back to the environment.

Ta Dinh Thi, General Director of the General Department of Sea and Islands, at a recent workshop on dealing with ocean plastic waste, mentioned the importance of international cooperation, the participation of NGOs and researchers in supporting the Ministry of Natural Resources and the Environment (MONRE) to build up the national action plan on managing ocean plastic waste by 2030.

Many countries have recognized that plastic waste is a transnational problem that requires the participation of many involved parties.

The ocean plastic waste in some countries could be from many other countries, while the complexity of plastic waste types, which have relations with the consumer products of transnational enterprises with production bases located all over the globe.

The MONRE plan to set up an international research center on ocean plastic waste,m and an open data system is expected to give Vietnam an opportunity to expand the international cooperation with international agencies, organizations and research institutes which also want to share database.

Pham Hung Viet, director of the Laboratory on analysis technology for environment and food safety inspection, said this is the first time Vietnam can go abreast with other countries.

Previously, Vietnam lagged behind the world in pollution treatment. But, in this case, Vientam can join forces with the world to carry out research and find solutions.

However, he said Vietnam still doesn’t have experience treating waste and it needs to learn about management methods from developed countries.

The solutions such as using packs made of environmentally friendly and recyclable materials remain not commonly applied in Vietnam, just 2-3 percent of potential.

This coincides with Ocean Conservancy’s comment which, in its analysis in 2018, noted that the effects in controlling ocean plastic waste would still depend on the readiness and management level of every country.

According to a report on Vietnamnet

Vietnam e-logistics sorting out supply

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Leading logistics providers are looking to technological investment and e-logistics as Vietnam’s limits in infrastructure and connectivity continue.

French logistics and transport company FM Logistic began construction of its first owned XXL 5.2-ha multi-client warehouse early this year, at VSIP Bac Ninh in Vietnam’s north, with high standards in fire prevention and protection, ventilation, and energy savings. Investment stands at $30 million and the first phase will be put into operation next April.

It also opened a 6,500 sq m distribution center in southern Binh Duong province in May, which was designed to store fast-moving consumer goods (FMCG) and retail and consumer goods for distribution to Ho Chi Minh City and elsewhere.

As rapid change continues to be seen in Vietnam’s logistics market, rising demand is being driven by higher wages, greater consumption, the country’s young population, booming e-commerce, and the appearance of omni-channels, according to Mr. Hamza Harti, Country Managing Director of FM Logistic Vietnam.

Vietnam’s entire supply chain is expected to be digitized in the near future, since Industry 4.0 technologies are altering customer behavior and forcing logistics providers everywhere to adapt to around-the-clock service provision.

E-commerce & tech boost

Using mobile devices is now common practice among consumers. The transformation of the shopping experience away from bricks-and-mortar stores and towards e-commerce represents a major challenge for retailers and manufacturers alike as well as the associated logistics and supply chains.

Consumers and businesses expect a seamless shopping and B2B experience, so retailers and those in supply chains need to adapt to omni-channel demands without delay.

There is a shift in consumer purchasing behavior that has changed the way products flow through the supply chain.

“The distribution of goods has evolved from a somewhat predictable and easily planned process to a more personalized service level and delivery models,” said Dr. Robert McClelland, Head of the Department of Management at RMIT University Vietnam.

Omni-channel warehousing and fulfilment centers have appeared to facilitate this, he went on, but these require more flexibility in size, services, and location to react to demand in the shortest time possible.

Anytime, anywhere delivery models will also be required to meet promises made to end-consumers. To satisfy consumer expectations, companies will also have to provide new services that facilitate easy returns.

Growing B2B commerce will require specialized delivery services as well, especially for high-value, time-critical deliveries, and cross-channel omni-channel platforms shared between manufacturers, retailers, and logistics providers will be essential to gain complete visibility of customer interactions and, more importantly, for data and inventory between warehouses and other platforms to easily shift to meet peaks in demand.

There needs to be advanced analytics and AI for this to happen, which will play a crucial role for these platforms.

One of the biggest players in the local logistics market, Lazada E-logistics (LEL) Vietnam, has invested heavily in expanding its footprint around the country through new fulfilment centers, with five in Ho Chi Minh City, Hanoi, and Da Nang, new sorting centers to increase speed and accuracy, and then last mile hub expansions and automation implementation to optimize performance and lead time.

“The last 18 months have been an exciting period for the e-logistics industry, full of growth, new infrastructure, and the newest technology,” Mr. Fabian Wandt, CEO of LEL Vietnam, told VET.

Meanwhile, many experts say that Vietnam is also facing challenges regarding the digital aspect of logistics, as Industry 4.0 technologies such as the Internet of Things (IoT), big data, and augmented reality are turning the industry upside down.

These digital innovations promise to slash shipping costs, improve the tracking of shipments, and ensure the security of cross-border cargo.

Digital innovation has vastly improved visibility, transparency, compliance, and reliability in supply chains.

“Digitizing is affecting all parts of the supply chain,” said Mr. Mark Cheong, Head of Marketing and Sales at DHL Global Forwarding.

“Customers want quicker service, and the question is whether logistics providers can meet that demand. DHL is working closely with the Vietnam Logistics Association to explore solutions, including digital ones, that can help bring down logistics costs.”

Adaptive strategies

Industry 4.0 will allow Vietnam’s logistics industry to leap-frog into the future, especially with the growth of local startups that use technology to transform the shipping and warehousing segment. “The challenge and the opportunity both lie in technology,” said Dr. McClelland.

“Technology constantly throws up new and innovative ways of altering the way we work, providing us with the chance to steal a march on our rivals and find that extra 5 or 10 per cent. Invest in and deploy the right software and hardware and you could become more efficient operationally. Sit still and your business can very quickly look slow-moving and behind the times.”

In order to adapt to the domestic market, FM Logistic is working with clients using some of its global innovations, such as the e-commerce trolley, for implementation next year.

The first technological solution the firm implemented in Vietnam was its Warehouse Management System, which offers the latest powerful functionalities suitable for retail, e-commerce and omni channel warehouse operations, optimizing both the quality, the productivity, and also the speed of operations while minimizing all the paperwork, and all of this at a cost suitable for Vietnam.

At LEL Vietnam, the company launched the first-of-its-kind self-collection service in Ho Chi Minh City in June.

“Lazada customers can now choose to pick up at a collection point before checkout and then re-direct their parcel to any location of their choosing,” said Mr. Wandt.

“Technology allows us to enable information sharing in real time through system integration with all our partners in the ecosystem. Real time information sharing allows us to better optimize our day-to-day logistics utilization and also increases efficiency. These are the two biggest drivers in improving costs.”

LEL has also launched the new Alibaba Retail and Supply-Chain Platform (ASCP) in Southeast Asia. The new platform enables it to drive towards two important strategies: enabling all small and medium-sized enterprises (SMEs) to access global trade and end-to-end optimizing of the supply chain for brands and retailers.

“Our new systems will significantly improve our suppliers’ experience, empower our sellers, and drive automation across the whole value chain,” he said.

“The new system fully automates our selling processes, from forecasting and replenishment to pricing, service levels, inventory management, and stock placement. All our processes are now supported by AI.”

Meanwhile, DHL Express’s recent technological innovations include courier scanners, e-shipping tools, and customs declaration processes that help customers follow exactly where their packages are at all times.

“We have invested over $8 million here in the past three years and have a plan for a similar pace of investment in the years to come,” said Mr. Shoeib Reza Choudhury, Country Manager of DHL-VNPT Express Vietnam.

“We have also recently started accepting new cashless payment technologies to offer customers new ways to pay and switched to e-invoicing in the past year, which is not only more convenient for customers but helps us save around 720,000 sheets of paper each year.”

Major constraints

In logistics, information is king, according to Mr. Cheong from DHL. “Technology will allow us to provide information to customers in an effective manner and help them with their decision-making process,” he explained.

“Again, Vietnam’s logistics infrastructure might be sufficient for now, but for long-term growth we need more muscle to push ideas ahead and cut red tape.”

According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), infrastructure investment demand in Vietnam in the 2016-2020 period has been projected at some $24 billion; almost double the need in the previous five years.

Dr. McClelland indicated that the key challenges here are fiscal constraints and less room to finance large transport projects from State funding, inefficient investment planning and public finance allocation, undeveloped capital markets, a lack of necessary in-country capacity, and a lack of an enabling environment for private investment.

Moreover, there are different challenges in every country when it comes to laws and infrastructure, and Vietnam is no different, according to Mr. Russell Reed, Managing Director of UPS Thailand and Vietnam.

For example, highways in the country don’t have the same capacity as those found elsewhere in Southeast and East Asia, and this can lead to bottlenecks, often during peak periods, when transport infrastructure really needs to perform at its best.

However, at the same time, he’s optimistic about the focus the Vietnamese Government is placing on upgrading and expanding the country’s infrastructure, with $52 billion worth of PPP projects currently underway.

The upcoming North-South Expressway will be especially useful in cutting congestion. Meanwhile, on the legal front, Vietnam’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other trade deals means that the government is grappling with issues such as customs harmonization and intellectual property; issues that are vitally important to ensuring Vietnam is able to continue forward as a reliable and safe trading partner.

According to a report on Vietnamnet

Five more MobiFone officials prosecuted for involvement in AVG scandal

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Related to MobiFone’s AVG purchase case, the Supreme People’s Procuracy of Vietnam has approved the implementation of legal proceedings agains five officials of the State-owned telecommunication giant MobiFone.

Accordingly, the Investigation Police Department under the Ministry of Public Security has begun legal proceedings against these people, including three General Directors of MobiFone – Nguyen Dang Nguyen, Nguyen Bao Long, Nguyen Manh Hung – and two members of the MobiFone Members’ Council – Phan Thi Hoa Mai and Ho Tuan.

These people face the charge of “breaching regulations on the management and use of public investment capital, causing serious consequences” under Article 220 of 2015 Penal Code, the ministry announced on August 26.

Earlier, the agency started legal proceedings against law violations and nine others involved in the case, for the charge of “breaching regulations on the management and use of public investment capital, causing serious consequences”.

Multiple irregularities had been found in the acquisition process initiated by MobiFone, a business under the Ministry of Information and Communications and the country’s third largest mobile carrier.

MobiFone had spent roughly VND8.89 trillion (some US$390 million) in buying 344.66 million AVG shares in late 2015.

Following a probe into the deal, the Government Inspectorate concluded that AVG was incurring losses after it was acquired by MobiFone. The irregularities and the irresponsibility of MobiFone have cost the State some VND7 trillion, including AVG’s liabilities of VND1.13 trillion.

According to a report on Vietnamnet

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