Vietjet Air, Grab, Swift247 to launch express delivery service

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The teaming up of Vietjet Air, Grab, Swift247 allows goods to be delivered between Hanoi and HCMC in as little as five hours.
A strategic partnership agreement signed Wednesday by airline Vietjet Air, ride-hailing service provider Grab and tech-based courier Swift247 envisages joint development of an integrated digital platform that provides delivery solutions by ground and air in Southeast Asia.

The platform will include a ‘super-express’ delivery service that will leverage technology from Swift247 to connect shippers and customers, Grab’s driver fleet and Vietjet Air’s network.

The service would initially be an extension on GrabExpress, Grab’s courier service, and customers can track the movement of their parcels on Grab’s website as well as Swift247’s delivery app, Vietjet Air said.

The service has been tested for a month, and the partners look to fully integrate Swift247’s services into the Grab platform soon.

“Our partnership with Grab … [and] Swift247 will usher in changes to the local delivery market and meet the increasing demand for goods delivery services,” Vietjet president and CEO Nguyen Thi Phuong Thao said.

It is also another step towards Vietjet Air becoming a “consumer airline,” she added.

Vietjet Air operates more than 400 flights daily on 129 local and international routes including to Japan, Hong Kong, Singapore, and Korea.

Singapore-based Grab provides a wide range of services on its platform, such as transportation, food and goods delivery and e-payment, and operates in eight countries in Southeast Asia.

Swift247, established in February, is a Vietnam-based technology startup that provides express delivery and e-commerce services.

Source: Vnexpress

Vietravel’s shares will be listed on UPCoM

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Hanoi Stock Exchange has approved the registration of trading shares of the Vietnam Travel and Marketing Transport Joint-stock Company (Vietravel).

Vietravel will trade more than 12.6 million shares on the Unlisted Public Company Market (UPCoM), with par value of VND10,000 (43 US cents) per share.

In addition, Vietravel also transferred registration and depository data from unlisted mass market to UPCoM market on Vietnam Securities Depository system from August 7, 2019.

Vietravel currently operates domestic and international travel tours, labour export, vocational training classes, trade promotion and events.

The company is also implementing an online business growth project and carrying out charter flights for the business period in the last six months of 2019.

In the first half of this year, Vietravel’s net revenue is estimated at nearly VND3.98 trillion, a year-on-year increase of 6 per cent. The company’s pre-tax profit reached around VND30 billion, up 26 per cent compared to the same period last year and achieving 44 per cent of the year’s plan.

In 2019, the firm targets revenue of more than VND8.61 trillion and after-tax profit of VNĐ60.8 billion.

- VNS

24 happy hours in Vietnam’s Phu Quoc Island

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Vietnam’s Phu Quoc, a 222-square-mile island in the Gulf of Thailand, has welcomed rapid development and an ever-increasing list of direct flight connections.

Visitor numbers have grown in parallel, catapulting to an estimated 2.5 million in 2018 — a 25% jump compared with the year prior.

Most come for the beautiful beaches — such as Sao Beach, Long Beach and Ong Lang Beach — but there’s much more on this travel menu.

The flow of ivory is relentless from Africa to Vietnam

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Last few months, 3.5 tons of trafficked ivory was discovered in a shipping container at Vietnam’s northern port of Hai Phong.

In June, over 9 tons of ivory was seized in Da Nang, in the central part of the country. It is thought to be the largest seizure to date and as many as 1,000 elephants were slaughtered for this one shipment alone. Darunee Sukanan reports on Sustainability Times.

Then in July, ivory weighing more than 8.8 tons, which came from 300 slaughtered elephants, was discovered in Singapore on its way to Vietnam.

Related: 10 Tonnes of African Ivory found in Vietnam

Three cases of big ivory seizures all linked to just one country this year so far. Last year and the years before were no different. The overall volume of ivory from 2009 to 2018 that was known to have been smuggled into Vietnam stood at a staggering 56 tons.

That number excludes an additional 20 tons that was seized outside Vietnam but was destined for the Southeast Asian country. All together, that massive volume of 76 tons of ivory came nearly from 11,500 elephants.

Vietnam is the most important hub of the illegal global ivory trade. Even though selling elephant ivory is forbidden in the Southeastern Asian country, the black trade in tusks continues to thrive as a result of lax law enforcement in Vietnam where ivory is used in decorative objects and pieces of jewelry for status-obsessed buyers.

“Although retailers know that selling ivory is illegal, it does no deter them from offering it openly for sale in Vietnam,” says Sarah Ferguson, director of the anti-trafficking group TRAFFIC in Vietnam. “Regulatory and enforcement efforts must catch up to the markets, or the Vietnamese illegal ivory market will remain one of the largest in the world,” she adds.

According to Sustainability Times, most of the ivory on sale in Vietnam is from pachyderms in Africa where approximately 350,000 African elephants remain, yet their number is fast diminishing. Each year more than 20,000 of these iconic creatures are slaughtered for their tusks. The tusks are then smuggled into Asia, the world’s biggest ivory market, to meet demand from Vietnam and China, the two main destinations for the illicit merchandise.

Although, thanks to stepped-up conservation efforts, the rate of African elephants killed each year declined from more than 10% in 2011 to less than 4% in 2017, mortality from poaching is still posing a grave threat to the animals on the continent.

“We are seeing a downturn in poaching, which is obviously positive news, but it is still above what we think is sustainable so the elephant populations are declining,” says Dr. Colin Beale, a researcher from the University of York.

According to a study done by the University of York in the UK, the University of Freiburg in Germany and the Convention on International Trade in Endangered Species, the recent drop in elephant poaching is also related to lessened demand in ivory from China.

This is not because the popularity of ivory in the country has declined but because a slump in the economy across China has affected prospective buyers. A ban by the government on the sale of ivory, enacted at the end of 2017, has also had an effect.

Clearly, however, the situation in neighboring Vietnam is different with a thriving back market in elephant tusks. That is why it is essential to start clamping down on the trade in Vietnam as well if we are to save Africa’s embattled elephants from losing even more of their herds to unscrupulous poachers and traffickers.

Read original article on Sustainability Times.

Foreign investors dumped Vietnam and Asian equities

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REUTERS – From Vietnam to Taiwan, foreign investors offload Asian equities in the first six days of August after two months of buying, as the US ramped up pressure on China with a $300 billion trade barrage last week.

Overseas investors sold about $4.5 billion of regional equities during the period, data from stock exchanges in South Korea, Taiwan, India, Thailand, Philippines, Indonesia, and Vietnam showed.

Related: Investment registration and Enterprise registration certificate for foreign investors in Vietnam

Sharp outflows from Asian markets point to increased worries that trade tensions between the world’s two top economies could escalate, and regional economies and corporate earnings might deteriorate further. According to a report on Reuters.

US President Donald Trump said last Thursday he would slap a 10 percent tariff on the remaining $300 billion of Chinese imports starting Sept. 1, marking an end to a truce in the year-long trade war that was struck in June.

In response, China let its currency weaken 1.4 percent on Monday, sending it past the key 7-per-dollar level for the first time in more than a decade, and then the United States labeled Beijing a currency manipulator.

MSCI Asia-ex-Japan index had fallen 6.4 percent this month as of Tuesday’s close, after shedding 1.7 percent in July.

“Recent foreign outflows from Asian equities clearly suggest that investors are getting nervous on markets given escalating trade tensions,” said Chetan Seth, a strategist for Nomura Securities in Singapore.

It might get harder for the US and China to ease or soften these tensions given how events have unfolded over the last few days, he said.

Goldman Sachs said markets were pricing in a less than 15 percent chance of a trade deal being agreed. It estimated 13 percent and 8 percent cumulative earnings downside for MSCI China and MSCI Asia-ex-Japan in 2019-2020 under a “no deal” scenario.

Taiwan and India saw the biggest outflows in Asia, with net selling of $1.8 billion and $1.1 billion respectively. South Korea also witnessed outflows, of $919 million.

Taiwan and South Korean companies are more exposed to the Sino-US trade tussle as they have extensive ties with tech firms in China and are part of their supply chains.

Indian shares were undermined last month after the federal budget raised import tariffs on many items, hiked taxes on the rich and proposed changes in shareholding norms.

A slew of disappointing earnings by Asian firms for the second quarter also increased investor caution on regional markets.

Refinitiv data showed major Asian firms such as Tata Motors , Canon Inc. and Nissan have posted second-quarter earnings below expectations.

“So far 1H earnings in Asia-ex-Japan markets have been below estimates – although still early days. The question investors need to answer is what happens to 2020 earnings as markets in 2H will start discounting next year’s earnings,” said Nomura’s Seth.

“If trade tensions persist, there may be more downside to current consensus earnings estimates.”

In July, foreigners had invested $234 million in Asia, much lesser than $4.2 billion inflows in June.

Chinese ship heads away from Vietnam in East Sea Standoff

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A Chinese survey ship which has been embroiled in a tense month-long standoff with Vietnamese vessels has headed away from Vietnam’s Exclusive Economic Zone (EEZ), a Washington-based think tank said on Wednesday.

Since early July, Vietnamese ships have closely tracked Chinese vessels operating within the Southeast Asian country’s EEZ, in the latest confrontation in waters that are a potential global flashpoint as the United States challenges China’s sweeping maritime claims.

Related: China’s military drill near Paracel Islands illegal, Vietnam asserts

“Ship tracking data show that China’s survey ship has exited the Vietnamese EEZ for now, but at least two of its coast guard escorts remain in the area of the survey,” Devin Thorne, senior analyst at the Center for Advanced Defense Studies (C4ADS) told Reuters, citing data from maritime analytics company Windward.

“Vietnamese ships pursued Haiyang Dizhi 8 as it returned to Fiery Cross Reef and now appear to be loitering just outside of Vietnam’s EEZ,” Thorne added.

Fiery Cross Reef is a man-made island, controlled by China, built on a disputed the East Sea of Vietnam reef, to which Vietnam and the Philippines have competing claims.

It was not clear late on Wednesday if China’s Haiyang Dizhi 8 survey vessel planned to return to Vietnam’s EEZ, Thorne said.

The survey ship, operated by the China Geological Survey, has been conducting what appears to be seismic survey of Vietnam’s offshore oil blocks, according to the Windward data.

US Secretary of State Mike Pompeo has criticised Chinese “coercion” in the disputed the East Sea of Vietnam, while Beijing’s top diplomat, Wang Yi, said last week that maritime problems involving Vietnam should not interfere with two-way ties.

The offshore impasse has stoked anti-China sentiment in Vietnam, where previous tensions between Beijing and Hanoi over the disputed waters have erupted into protest.

Last week, a Vietnamese fishermen’s group urged the government to take stronger measures to remove the ships, saying they were disrupting fishing activities.

And on Tuesday, Vietnamese police broke up a brief demonstration outside the Chinese embassy in Hanoi against the operations of the vessel and its escorts.

Also on Tuesday, the Philippines, which is also embroiled in maritime disputes with Beijing, said its president Rodrigo Duterte would meet Chinese counterpart Xi Jinping soon to discuss a 2016 arbitration case over the East Sea of Vietnam.

That ruling in international law invalidated China’s claim, based on its so-called “nine-dash line”, to historic sovereignty over most of the busy and resource-rich waterway.

Read original article on ABS – CBN News

VN stocks gain slightly amid global market concerns

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Vietnamese shares inched up on Wednesday morning as investors sought safe investment in banks, retailers and food and beverage companies.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange gained 0.26 per cent to close at 967.12 points.

The VN-Index had fallen a total of 3.28 per cent in three straight days since last Friday.

Shares of banks, retailers and food and beverage companies became attractive to investors on Wednesday morning.

The three sector indices gained between 0.7 per cent and 2 per cent, data on vietstock.vn showed.

Investors may be looking for short-term earning opportunities in those sectors amid the uncertainty of the global markets.

The Chinese yuan broke its 11-year low early this week amid rising tensions in US-China trade relations, putting pressure on Viet Nam’s macro-economic conditions and equities market.

Large-cap stocks performed well enough to cushion the market.

The VN30-Index that tracks the performance of the 30 largest stocks by market value and trading liquidity was also up 0.26 per cent to 868.35 points.

Fourteen of the 30 stocks in the VN30 basket advanced while 11 declined.

Worries about the uncertainty of the stock market sent trading liquidity to a modest level.

More than 137 million shares were traded on the southern bourse, worth VNĐ4.5 trillion (US$193.5 million).

On the Hà Nội Stock Exchange, the HNX-Index increased slightly by 0.16 per cent to end at 102.05 points.

The northern market index dropped a total of 2.43 per cent in the previous four days.

Nearly 15 million shares were traded on the northern market, worth VNĐ211 billion.

The afternoon trading session starts at 1pm.

Source: VNS

VN university graduates capable of writing an application for a job?

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Employers are complaining about the lack of skills of Vietnamese students and university graduates. Many of them don’t even know how to write an application for a job.

According to the World Bank, workers need technical, cognitive and behavioral skills.

Providing technical skills involves practicing and experiencing in reality. Technology majors need to practice with machines and equipment to obtain skills.

Behavioral skills take shape throughout life from school to working periods. Soft skills comprise teamwork, communication and negotiation. Cognitive skills form very early and improve gradually during the education process.

According to Nguyen Duy Dat from Trade University, Vietnamese students are weak at skills, including simpler communication and teamwork skills. They cannot write an application for jobs or prepare a document in a reasonable form.

Nguyen Hoang Anh, a lecturer of the Foreign Trade University, said she once worked with a PhD student who could not prepare a document with reasonable alignment.

The representative of a foreign invested enterprises complained that it took the enterprise two years to ‘erase’ all the knowledge and skills students received from school, and took two more years to train the students in the skills it wanted.

Thr students’ lack of basic skills is blamed on unreasonable training programs.

Most recently, deputy chair of the National Assembly’s Committee for Culture, Education, the Youth and Children Pham Tat Dong said this was the result of abuse of multiple-choice exams.

He said multiple-choice exam questions affect students’ thinking ability. Instead of explaining the steps of solving questions, students just need to circle A, B, C or D answers. They do not need presentation skills when solving exam questions.

Dong has called on the education ministry to reconsider exam questions, saying that it would be better if the proportion of multiple-choice and explanation-based exam questions is more reasonable.

Ngo Thi Minh, a National Assembly’s Deputy, agreeing with the idea, said the education ministry needs to discuss with universities on whether to apply multiple-choice questions for history and math tests.

Multiple-choice exam questions have been controversial since the day they first appeared in Vietnam. Many experts oppose the exam method, saying that this method cannot truly assess students’ ability.

Source: VNN

Tiki announces investor structure

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Announcement on company’s investor structure and management and operations framework made on August 6.

Tiki announced for the first time its investor structure and management and operations framework on August 6 in Ho Chi Minh City.

VNG holds 24.6 per cent of Tiki’s shares, according to VNG’s consolidated financial report for June 30.

The China-based JD.com holds 25.65 per cent, according to another release regarding business registration changes posted on the National Portal on Business Registration on June 26. Tiki, however, officially confirmed that the information in this release is from a report for a previous time, not June 30.

The difference in the two reports led to inaccurate reporting that VNG is no longer Tiki’s largest shareholder.

After nine years of development, Tiki is now the leading company in the infrastructure and fulfillment center network in Vietnam’s e-commerce industry, with an end-to-end supply chain.

It owns ten fulfillment centers nationwide on a total area of over 60,000 sq m and is the only e-commerce business offering the TikiNOW 2h fast delivery service, the first in Southeast Asia and with a punctual delivery rate of up to 99.5 per cent, with the remaining 0.5 per cent due to reasons such as missed calls, weather, and traffic, or other unexpected factors. Tiki’s nationwide average delivery time is 1.2 days, while the figure for the market as a whole is four to five days.

In the three years since the launch of the Managed Marketplace, Tiki now offers over 4 million authentic products to Vietnamese customers.

From investment by local and foreign investors, Tiki builds, develops, and operates technology and systems. It guarantees that all data for the Vietnamese market and users is stored and kept secure, in compliance with Vietnamese law.

Besides building infrastructure, technology, and business activities, the platform has also paid substantial attention to having a positive impact on Vietnamese people. Via the Tiki Foundation, it invests in Vietnamese talent to bring positive changes to society.

Source: Vneconomictimes

Hanoi first-grader school bus death to be prosecuted

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Hanoi police have decided to prosecute the case in which a first-grader at an international school in Hanoi was left to die on a school bus.
The information was given at a press conference held by the local police Wednesday.

According to a report released at the meeting by the Cau Giay District People’s Committee, Le Hoang Long, 6, from Gateway International School was found dead in the vehicle at around 4 pm on Tuesday by Nguyen Thi Bich Quy who is in charge of supervising the students on the vehicle.

Quy has been working for the school for two days, and had not yet signed a labour contract with the school.

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.

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.

Doctors at E Hospital said that the boy had died long before being brought to the hospital

Speaking at the meeting Pham Ngoc Anh, director of Cau Giay District’s Department of Education and Training, said there were no specific regulations related to school buses.

He noted that in the coming time, the department would issue regulations on school safety to avoid such incidents.

Chairman Tran Thi Hong Hanh said the school has suspended people who directly involved in the case, adding that the school continued to operate normally.

Source: Dtinews

China’s military drill near Paracel Islands illegal, Vietnam asserts

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Vietnam has strongly emphasized that China’s military drill near the Paracel Islands is illegal and a violation of its sovereignty.
“As repeatedly emphasized, Vietnam has full legal basis and historical evidence to assert its sovereignty over the Hoang Sa [Paracel] and Truong Sa [Spratly] islands in accordance with international law.

“China carrying out military drills near Vietnam’s Paracel Islands has seriously violated Vietnam’s sovereignty over these islands,” foreign ministry spokeswoman Le Thi Thu Hang said in a statement Wednesday.

“On August 7, representatives of Vietnam’s Ministry of Foreign Affairs had exchanges and delivered a diplomatic note opposing the violation by the Chinese side,” Hang added.

China held illegal military training exercises near the Paracel Islands in the South China Sea, which Vietnam calls the East Sea, from 9:30 a.m. to 11:30 a.m. and from 3 p.m. to 6 p.m. on Tuesday, as well as from 3 p.m. to 5 p.m. Wednesday.

In an announcement issued Monday, the Maritime Safety Administration of China’s Hainan Province said that all vessels were forbidden from entering the area while the drills were underway.

The latest drill was a continuation of similar illegal actions by China. In May last year and March this year, it had live-fire drills in areas under Vietnam’s sovereignty near the Paracel Islands, which China had seized from then-South Vietnamese regime by force in 1974 and has since been occupying illegally.

Last June, it held a five-day military drill in an area north of Vietnam’s Spratly Islands, parts of which have been illegally occupied by China since 1988.

China’s latest military drills were held even as the international community has expressed concern over its recent actions in the South China Sea.

China sent oil survey ship Haiyang Dizhi 8 and its escorts to Vietnamese waters near the Vanguard Bank in early July, blatantly infringing upon Vietnam’s exclusive economic zone and continental shelf.

Satellite images taken in June also showed that China had illegally deployed at least four J-10 fighter aircraft to Vietnam’s Woody (Phu Lam) Island, the largest island in the Paracels archipelago.

China claims almost the entire South China Sea, including waters close to Taiwan and Southeast Asian countries Brunei, Malaysia, the Philippines and Vietnam.

In 2012 it established the so-called Sansha City on Woody Island, which also covers several island groups and atolls in the South China Sea including the Paracel Islands, the Spratly Islands and the Scarborough Shoal.

Source: Vnexpress

Kipinä to join forces with ILA Vietnam to launch 10 new preschools throughout Vietnam

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Kipinä, the fastest growing international preschool brand featuring an “Enhanced Finland” curriculum will join forces with ILA Vietnam to launch 10 new Kipinä preschools throughout Vietnam within next 3 years.

ILA Vietnam is one of the leading providers of English Language programs in Vietnam, with over 43 centres across Vietnam employing more than 800 teachers and delivering programs to more than 30,000 students.

Kipinä already has schools in 14 countries, mainly across the Middle East, North Africa and Eastern Europe. The Vietnam roll-out brings Kipinä’s number of scheduled school openings to 42 and marks the beginning of a planned expansion throughout India, Asean countries and China.

Kipinä’s Finland university partner Häme University of Applied Sciences will provide certified teacher training in Finnish Pedagogy through a special program for foreign teachers that it jointly developed with Kipinä.

“Finnish Early Childhood Education is not easily exportable,” says Tran Xuan Dzu, CEO of ILA. “Kipinä substantially adapted the framework to suit environments and teachers outside Finland. Their approach to creating extensive resources and tools for teachers, combined with a practical approach to teacher training delivered online through Häme, and in local workshops, means we can deliver the best approach to educating children while ensuring sustainability and investing in our teachers.”

Kieran Galvin, Managing Director of Kipinä adds, “Kipinä recognises the difficulties inherent in opening schools in new markets. It’s why we work with experts like ILA who have more than 20 years experience in the sector.”

“While a lot of preschool franchisors turn their attention to the potentially lucrative US market, at Kipinä we prefer to work with innovators and disrupters in countries where the benefits of good quality education can make an enormous impact.”

Kipinä uses an enhanced Finland approach based on the Finnish National Core Curriculum for Early Childhood Education and Care, with extra elements added to make the program more suited to international environments. These include: Focused Instruction Methodology, 21st Century Skills and Executive Functioning skills for children.

A six-year-old boy found dead after being abandoned in the school bus

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A six-year-old boy studying in the Gateway International School in Hanoi was found dead Tuesday after he was abandoned in the school bus for nine hours.

Le Hoang Long, a first grader, who lived in Cau Giay District, was put on the bus belonging to the school at 7 a.m. It was his second day coming to Gateway. Pham Du, Duong Tam  reported on VNExpress, a local media.

At 4 p.m. the parents learned from the boy’s class teacher that he had not attended class that day.

“When we went to the school, we received evasive answers from the teacher,” said the boy’s father.

“When we tried to find our child, the school said he had overslept in the bus and had been admitted to E Hospital. When we reached the hospital, our child was already dead.”

The boy had been found unconscious in the bus by school staff at 4 p.m., when students were returning home for the day.

Tran Thi Hong Hanh, chairwoman of Gateway, said he was then taken to the hospital.

When the student was absent from class in the morning, his class teacher Nguyen Thi Thuy had informed the school administration of his absence, she said.

But since the teacher in charge of informing the parents was on leave that day, “mistakes happened,” she said.

“The unit hired to provide the bus service admitted the student was forgotten on the bus.”

Teachers from the school said that Long sat on the last row of the 16-seat car, which was carrying 13 students on Tuesday morning.

When the bus arrived at school, two other students who were on their first day to school were crying a lot, and Quy, an assistant traveling with the students on the bus, was busy helping them and did not check the number of students stepping down.

Quy and the bus driver, Phien, never checked the vehicle until they picked up the students from school in the afternoon.

Long was then found lying on the row right behind the driver’s seat.

According to VNExpress, The boy’s family has agreed to have an autopsy done, to decide the time and cause of death.The school has said it takes full responsibility and is checking security cameras to find out what happened. The Cau Giay District police have summoned school authorities for questioning.

Gateway has classes from grades 1 to 9 and three campuses, two in Hanoi and one in the nearby Hai Phong City.

Follow Vietnam Insider on Facebook, Twitter and LinkedIn. Send your story ideas to editor@vietnaminsider.vn

Read original post on  VNExpress.

Samsung SDS purchases 25% stake in Vietnam’s CMC to work together on AI and IOT

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Samsung SDS, a system developer unit of Samsung Electronics, plans to buy a 25% stake in Vietnam’s No. 2 tech company CMC for an undisclosed amount, companies will work together on AI and internet of things.

The deal, announced on July 26, is estimated to be worth about 50 billion won ($41.1 million), according to South Korean media reports. A source at CMC told the Nikkei Asian Review that Samsung’s investment amounted to “not less than 750 billion dong ($32.3 million),” making it one of the largest investments in a Vietnamese IT-related company by a foreign business, according to Vietnamese media reports. TOMOYA ONISHI and KIM JAEWON report on Nikkei

CMC will accept representatives from Samsung SDS on its board of directors, CMC said in the press release. CMC declined to detail the exact number of board members joining from Samsung SDS.

The two companies will work together in areas including artificial intelligence, the internet of things, cloud computing and information security. CMC will use investment from Samsung to expand business across Southeast Asia.

According to Nikkei, the cooperation between Samsung SDS and CMC dates back to 2016. Samsung SDS said it expected the investment to pave the way for the expansion of its presence in the Vietnamese market, by combining its technology and solutions with CMC’s IT infrastructure and sales channels. The company is looking beyond Vietnam and hoping to accelerate its business across the Southeast Asian market.

“In cooperation with CMC, we will expand our digital transfer business for customers in the Vietnamese and global markets,” said Samsung SDS CEO Hong Won-pyo in a statement. Samsung did not unveil the deal price, but one local media outlet estimated it to be about 50 billion won based on CMC’s stock price.

Hanoi based CMC Technology Group focuses on IT solutions and telecommunication-related services. In the 2018 fiscal year, its accumulated revenue reached 6 trillion dong, while pretax profit was about 300 billion dong, according to the company.

Samsung operates two huge smartphone factories in northern Vietnam, producing more than 150 million units a year, and an appliance factory in the southern part of the country. The company has a great presence in Vietnam, with its products making up for about 25% of the country’s total exports.

German investors explore investment opportunities in Vietnam’s HCMC

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German investors visited Ho Chi Minh City to explore investment opportunities in Ho Chi Minh City, the southern hub of Vietnam and hosted by Secretary Nguyen Thien Nhan.

They were Horst Pudwill, German Chairman of the Hong Kong-based household appliance company Techtronic Industries (TTI) and Horst Geicke, Chairman of the Deutsches Haus (German House) Ho Chi Minh City. Vietnam News Agency (VNA) reports.

Related: Streamlining Business Registration in Vietnam for foreign companies

During the reception, TTI Chairman Horst Pudwill presented his idea on a 650-million-USD project in the Saigon Hi-tech Park which focuses on manufacturing of electric hand tools and power electronic converters for electrics, mechanical engineering and the Internet of Things.

Meanwhile, Chairman Horst Geicke proposed investing over 24 million USD to build a vocational training centre in District 9 as well as a plan to construct the second German House building in the city.

Pudwill spoke highly of the Vietnam – Germany relations over the past decade and wished that his company would continue receiving support from the local administration in the future projects, contributing to fostering the bilateral ties between the two countries and between Germany and HCM City.

Secretary of the Ho Chi Minh City Party’s Committee Nguyen Thien Nhan (R) hosts a reception for German investors on August 5. (Photo: sggp.org.vn)

Welcoming the investment proposals, Nhan said the projects would create hi-tech products, helping the city improve quality of R&D activities and human resources.

According to VNA, the city leader answered questions of German investors regarding local procedures of technological appraisal, land lease and registration at the Saigon Hi-tech Park.

He affirmed that local authorities would create all possible conditions for foreign firms to do business in the city.

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