Forming a Business Structure in Vietnam – Is Incorporation Right for You?

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Business incorporation has become synonymous with responsible business ownership. Yet, so many misconceptions and rumors exist about the benefits of business incorporation in Vietnam. So it’s no wonder that even the savviest entrepreneurs are at a loss as to whether incorporation is right for them, what it will cost, and where to start.

Business incorporation (which, by the way, is an umbrella term for many business structure options) may be right for some investors, but it isn’t for all. So it’s worth doing some stepping back and ascertaining whether incorporation is right for you.

Related: Company Incorporation Services in Vietnam

Here are some points to consider:

What is Business Incorporation?

As mentioned above, business incorporation is a loose umbrella term that covers a variety of options for legally structuring your business. These options include becoming…

Whatever business structure you choose needn’t be set in stone, and can be changed as your business matures. For example, many small investors start out as sole proprietorships or partnerships with formal incorporation taking place at a later date.

Of the many business entities that owners consider, LLCs and Branch Office are two of the most popular.

The Benefits of Incorporation

Here are some of the benefits you can realize if you decide to incorporate your business:

Personal Liability Protection – An incorporated company affords protection from any personal liability for your business debts and obligations. For example, if someone sues your company they can only go after your company’s assets, not your own.

Tax Benefits – If you incorporate you may gain tax benefits, although only under certain circumstances. This is one area to discuss with an accountant, as the marginal tax rates for corporations with taxable incomes in some cases can be higher than those for an individual in the same scale.

Corporate Identity – Incorporating can give a greater sense of credibility to your business.

Raising Capital – You can raise capital more easily through the sale of stock and securities if your business is incorporated.

Unlimited Life – Your corporation can have an indefinite life and outlive you. Do note that LLCs have a limited duration. Get more information on business structure differences from the GBS.

The Disadvantages of Incorporation

Some of the disadvantages of incorporation, particularly for the small business owner, include:

Paperwork – Depending on the structure you choose, you may need to provide many types of documents to The Vietnam’s Ministry of Planning and Investment office at the city your company located.

Cost – The fees associated with initial incorporation and ongoing maintenance can put a strain on start-ups. However, LLCs can be a more economic alternative to incorporation.

Is Incorporation Right for My Business?

At the end of the day, choosing the right business structure for your small business comes down to several factors such as your risk of liability, your tax obligations, business objectives, and so on.

Because the needs of every business are different, and the regulation varies from city-to-city, it’s worth an hour or two with a knowledgeable attorney to investigate all of the issues that will affect your decision.

Getting Started with the Process of Incorporation

All business incorporations must be filed with local government. Whether you choose to pursue this through an attorney or choose an online legal service is up to you. But try to get referrals and recommendations from other businesses that have been through the process.

More resources at: The Ministry of Planning and Investment Portal: http://www.mpi.gov.vn/en/Pages/default.aspx

Any support you may need, please contact GBS, a leading provider of incorporation services in Vietnam at

  • Email: info@gbs.com.vn
  • iMessage | SMS | Whatsapp | Viber | Call: +84903189033

Vietnam hands four smugglers over to China for allegedly running a fake condom and lubrication production

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They had reportedly dodged millions of Yuan in taxes from smuggling

Authorities in Vietnam arrested four men on June 5 for allegedly running a fake condom and lubrication production facility valued at 6 billion dong (US$258,000.)

Police in Ho Chi Minh City raided several locations in the city and uncovered a substantial number of fake condoms and lubricants being manufactured and stored, VN Express reported.

The leader of the group was identified as Truong Chi Thanh, who confessed to producing and distributing fake condoms throughout Vietnam.

In January, Truong had been caught with more than 120,000 fake condoms and lubricants that were set to be packaged as popular brands such as Durex. More than 60 kilograms of raw materials were also found at the scene.

The operation was expanding when authorities started investigating the group.

According to a survey by Vietnam’s Ministry of Health, 85% of the condoms sold in the country were not distributed by the original brands. About 500-600 million condoms are used in Vietnam every year. The survey also found that most buyers only consider the designs, fragrances and the price of the product, ignoring the quality.

Dr Kristan Schoultz, the Country Director for UNAIDS Vietnam, said fake condoms were not sterilized up to standards. Users of such condoms may transmit bacteria to their partners even if they use them properly.

This article was first appeared on Asia Times

Indian electronics manufacturers asked the government to ban imports of televisions from Vietnam

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Open cells are among the most critical parts in a TV panel and account for 65-70% of a set’s production value.

The electronics manufacturing industry has asked the government to immediately ban imports of televisions from Vietnam, which saw a 25-times jump to Rs 1,500 crore within the last one year, and called for changes in the import duty structure. Anandita Singh Mankotia reports on India Times

In similar letters dated June 11 to finance minister Nirmala Sitharaman, commerce minister Piyush Goyal and communications and IT minister Ravi Shankar Prasad, the Indian Cellular and Electronics Association (ICEA) said the government was losing close to Rs 1,000 crore in GST alone, owing to the current basic customs duty (BCD) regime, which was encouraging a grey market for color televisions.

“Televisions manufacturing in India is under grave threat. There is a huge and sudden rise in imports from Vietnam,” ICEA chairman Pankaj Mohindroo wrote in the letters.

The industry association has sought a time-bound three-month investigation by an inter-ministerial panel on imports from Vietnam — with which India has a free-trade agreement — in relation to price, quantity, value and special reference to rules of origin. The industry body has flagged that Korean major Samsung’s shifting production of colour TVs to Vietnam was a “blow” to the industry with a job loss of close to 10,000, directly and indirectly.

The government doubled customs duty on imported LCD and LED TV panels to 15% from 7.5% in the 2018 Union budget. While the duty on ‘open cells’ used in the manufacture of LCD and LED televisions was hiked to 10%, it was halved after the industry immediately sought a roll-back since it wasn’t ready to manufacture the component. The government’s full Budget is on July 5.

According to India Times, Open cells are among the most critical parts in a TV panel and account for 65-70% of a set’s production value. However, the biggest fallout of this duty was Samsung shutting down production of TVs in India and shifting out to Vietnam, with which India has an FTA. While the government has been mulling the complete rollback of duty on open cell, it is yet to make a move on the matter.

Vietnam Ophthalmology Market will be driven by Increasing Number of Hospitals coupled with Technological Advancement in Eye Surgeries

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Increasing preference of Multi-Specialty Hospital coupled with Growth in the Number of Ophthalmologists has driven the Ophthalmology Market in Vietnam.

The report titled “Vietnam Ophthalmology Market Outlook to 2023 – By Diseases (Cataract, Myopia, Glaucoma, Retina related Diseases, Blindness with Poor Eyesight, Conjunctivitis and Others), By Regions and By Hospitals (Single Specialty Eye Hospitals and Multi Specialty Hospitals)” by Ken Research suggested that Ophthalmology Market in Vietnam has been growing due to the increasing ageing population, regular eye checkups, increased screen time to multiple electronic devices, and rising environmental pollution in the country. The market is expected to register a positive CAGR of 11.5% in terms of eye consultations during the forecast period 2018- 2023E.

Increasing Number of Hospitals: The number of hospitals in Vietnam has increased over the years at a CAGR of 0.4% during the period 2013 to 2018. In addition to this, it has been observed that the majority of the general hospitals in Vietnam are equipped with a well- functioning eye department. Moreover, majority of the single specialty hospitals are being established in the major cities such as Hanoi and Ho Chi Minch city in Vietnam.

Increasing Number of General Hospitals and Ophthalmologists: In Vietnam, it has been observed that approximately 80.0% of the total General Hospitals have an eye department. Around 872 General Hospitals have an eye department in Vietnam as of 2018. On the other hand, total number of Ophthalmologists all over the country range from 6,000 to 6,500 as of 2018. Majority of the Ophthalmologists are concentrated in the urban areas of Vietnam such as Ho Chi Minh City, Hanoi and Da Nang.
Lack of Awareness among people towards Eye Care Centers: Lack of awareness about prevention and treatment of eye diseases among the people residing in remote areas and mainly highlanders is one major issue due to which people do not take relevant actions on facing any issue at the initial stage as the nearest health commune stations are not easily accessible. Therefore, people in Vietnam generally visit an eye care centre only when they are seriously ill.

Keywords:
Vietnam Ophthalmology Market
Major Eye Diseases Vietnam
Vietnam Eye Inpatients
Cataract Surgeries in Vietnam
Myopia Patients in Vietnam
Vietnam Eye Outpatients
Glaucoma Patients Vietnam
Central Eye Hospital Vietnam
Conjunctivitis Patients in Vietnam
Number of Doctors Vietnam
Vietnam Eye Care Market
Global Ophthalmology Market
Eye Treatments Fees Vietnam
Eye Hospitals Ho Chi Minh City
Public Eye Hospitals Vietnam
Private Hospital Vietnam
Relex SMILE Surgery Vietnam
Ageing Population of Vietnam
Population of Hanoi
Population of Ho Chi Minh City
Eye Diseases Vietnam
Diabetic Retinopathy Vietnam
Multi Specialty hospital Vietnam
Hanoi Hospitals Vietnam
Da nang Hospitals Vietnam

Key Segments Covered:

By Types of Diseases
Cataract
Myopia
Glaucoma
Retina Related Diseases
Blindness with Poor Eyesight
Conjunctivitis
Others

By Regions
Hanoi
Ho Chi Minh City
Da Nang
Others

By Types of Hospitals
Single Specialty Eye Hospitals
Multi Specialty Hospitals

Key Target Audience:
Single Specialty Hospitals
Multi Specialty Hospitals
Medical Devices Companies
Government Organizations
Non- Profit Organizations
Non- Governmental Organizations

Time Period Captured in the Report:

Historical Period: 2018
Forecast Period: 2018-2023

Companies Covered:
Ho Chi Minh City Eye Hospital
Central Eye Hospital
Saigon Eye Hospital
Da Nang Eye Hospital
Vietnam- Russia International Eye Hospital
Hanoi High Tech Eye Hospital
DND International Eye Hospital
Cao Thang Eye Hospital
Phuong Nam Eye Hospital
Japan International Eye Hospital

For more information, refer to Vietnam Ophthalmology Market

Related Reports: Vietnam Healthcare Market By Industry Type (Hospitals & Clinics, Diagnostic Labs, Pharmaceutical And Medical Devices)–Outlook To 2022

Shares ease on low demand

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Shares tumbled on Wednesday on low liquidity due to weak market sentiment as investors adopted a wait-and-watch approach with little capital injection.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange lost 0.82 per cent to close at 954.17 points.

On the southern exchange, 107 stocks advanced while 183 declined.

More than 138 million shares were traded on the bourse, worth VNĐ3.9 trillion (US$167 million).

The benchmark index dropped 0.09 per cent to close Tuesday at 962.07 points.

On the Hà Nội Stock Exchange, the HNX-Index decreased by 0.38 per cent to end at 103.56 points.

More than 27.3 million shares were traded on the northern market, worth VNĐ295 billion.

The northern market index decreased by 0.04 per cent to end Tuesday at 103.95 points.

The market at the end of the session continued to worsen with selling pressure rising while demand was still weak, which resulted in decreases for a series of large-cap stocks.

Decliners included Bank for Investment and Development (BID), Vietinbank (CTG), PetroVietnam Gas JSC (GAS), Việt Nam National Petroleum Group (PLX), Phú Nhuận Jewellery (PNJ), Vinhomes (VHM). VHM decreased by 2.3 per cent to VNĐ80,000 per share. GAS dropped 2.4 per cent to VNĐ101,500 per share. PNJ lost by 2.8 per cent to VNĐ76,700 per share.

Global oil prices dropped, with Brent crude futures falling 98 cents to $61.31, while US crude lost 92 cents to $52.35 a barrel.

On the local market, oil and gas stocks like PetroVietnam Drilling and Well Services Corporation (PVD), PetroVietnam Technical Services Corporation (PVS) and PetroVietnam Construction Corporation (PVC) also fell.

On the positive side, the market received support from some individual gainers such as Mobile World Group (MWG), Kido Group (KDC) and HDBank (HDB). However, the rise of these stocks was not strong enough to help the market overall.

The large-cap VN30-Index was down 0.63 per cent to end at 865.42 points with only four of the 30 largest stocks by market value and trading liquidity progressing and 25 stocks declining.

Insurance, banking, construction, stock brokerages, real estate, petroleum and mining, retail and technology were among the worst-performing sectors in the morning session.

Those sector indices declined between 0.34 per cent and 2.17 per cent, data on vietstock.vn showed.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) edged down 0.03 per cent to finish at 55.12 points. The unlisted market index gained 0.55 per cent to finish at 55.13 points in the previous session.

Source: VNS

Vietnam’s former top shipbuilding officials get 6-17 years in prison

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Three former top officials of state shipbuilding giant Vinashin will be jailed for appropriating illegal excess interest payments from OceanBank.

After a three-day trial, a Hanoi court Wednesday sentenced Vinashin’s former chairman Nguyen Ngoc Su to 13 years in prison for “abuse of power or position to appropriate property.”

The state-owned giant’s former general director Truong Van Tuyen, former deputy general director Pham Thanh Son and former chief accountant Tran Duc Chinh received 7-year, 6-year and 17-year sentences respectively on the same charges.

After serving their jail terms, Son and Chinh cannot hold office for another three years, the court ruled.

According to the defendants’ statements during the trial, between 2010 and June 2014, Vinashin made over 2,300 term deposit contracts worth nearly VND104 trillion ($4.46 billion) and $182 million.

Under the contracts, the shipbuilding giant received interest payments of nearly VND1.1 trillion ($47.2 million) and $30,000, the indictment said.

Chinh, as Vinashin’s chief accountant, was responnsible for receiving and managing the excess interest payments, which were kept off the books and used to cover Vinashin’s expenses.

Of the money Vinashin received from OceanBank, Su admitted to appropriating VND8 billion ($343,000) and using VND385 million for personal use, while Tuyen appropriated VND3.5 billion, Son, VND1.2 billion and Chinh, VND10 billion.

The defendants have returned the money they have admitted to appropriating.

However, the recipients of the remaining VND60 billion ($2.57 million) could not be proven so the court ruled that all four defendants must be responsible for returning this money.

Speaking at the trial, Su expressed regret that he had not considered the issue carefully before issuing the policy for Vinashin to deposit money with OceanBank and asked for leniency.

As the defendants have good personal background, recorded many achievements in their works and sincerely declared or admitted to their violations, the court agreed to hand them sentences lighter than the corresponding jail terms as per the Penal Code.

The appropriated money that the defendants had returned would be transferred to OceanBank and deducted from the compensation that the bank’s former chairman Ha Van Tham still owes it, the court ruled.

The trial of Vinashin’s top officials was part of the second phase of investigation into a multi-million dollar graft case at OceanBank, which was targeted at the bank’s major customers who illegally accepted excess interest payments.

Between 2010 and 2014, OceanBank paid interest above the ceiling rates regulated by the State Bank of Vietnam to customers on Tham’s orders, causing losses of over VND1.58 trillion ($67.7 million).

Following the case’s first phase of investigations, a Hanoi court in September 2017 sentenced Tham to life imprisonment after holding him mainly responsible for the losses. Tham said it was a strategy to attract deposits, but the court rejected this argument.

Nguyen Xuan Son, the bank’s former general director and a former chairman of the state-run PetroVietnam, was sentenced to death for appropriating VND246 billion ($10.5 million) from excess interest payments.

The case’s second phase of investigations has netted executives of several PetroVietnam subsidiaries in addition to the top officials of Vinashin.

Chinh, who received a 17-year sentence Wednesday, had already been given a 18-month sentence in August last year for a similar crime he committed while serving as chief accountant of PetroVietnam’s Vietnam Petroleum Institute.

Source: Vnexpress

Kantar reveals most popular FMCG brands

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Latest Asia Brand Footprint 2019 report released.

Kantar has revealed the top 10 fast-moving consumer goods (FMCG) brand owners and the top 10 FMCG brands in Health & Beauty, Homecare, Food, Beverages, and Dairy and Dairy Substitutes being bought by the most consumers the most often in Urban 4 Cities (Ho Chi Minh City, Hanoi, Da Nang, and Can Tho) and Rural Vietnam, in its recently released Asia Brand Footprint 2019 report.

Brand Footprint is set apart from other brand rankings by providing information on real consumer behavior rather than attitude. Consumer Reach Points (CRPs) form the basis of the ranking. An innovative metric that measures how many households around the world are buying a brand (penetration) and how often (frequency), it provides a true representation of shopper choice.

According to the report, the top 3 most chosen brand owners in 2018 were Unilever, Vinamilk, and Masan Consumer, which maintained their standings in both Urban 4 cities and Rural Vietnam for the seventh year running. The key factor behind their success is strategically diversifying their product portfolio to meet the fast-changing needs of Vietnamese consumers.

Unilever held its leading position in Rural, where more than 60 per cent of Vietnamese consumers live, and secured second place in the Urban ranking.

Vinamilk locked up its stronghold as first and third in Urban and Rural, respectively, partly driven by strong brands such as Vinamilk, Ong Tho, and Ngoi Sao Phuong Nam (Southern Star). The local dairy giant was again bought more than 6.5 million times by rural consumers last year.

Among the top 10 most chosen brand owners, Suntory PepsiCo and Calofic were the leading risers with the highest growth rate in CRPs in Urban 4 key cities and Rural, respectively.

Nestlé continued to be the outstanding performer as the only brand owner sustaining healthy growth in terms of CRPs in both the Urban and Rural rankings. Its success is attributable to the continued growth of Milo – its core brand – through many communications and marketing activities in 2018.

Coca-Cola Vietnam showed impressive movement, gaining two ranks to enter the top 10 Urban ranking for the first time.

In Health and Beauty, P/S was the number one brand in terms of CRPs in both Urban 4 cities and Rural Vietnam. In the top 10 ranking in this sector, five out of the ten brands belong to Unilever, demonstrating its leading position in the Personal Care market.

Diana saw remarkable achievements in 2018. It was not only the fastest growing brand among the top 10 in Urban but also acquired the greatest number of additional households in Rural areas. Moving from tenth to sixth, the brand enjoys soaring CRP growth of 26 per cent in Rural Vietnam.

Close-up made its first entry into the top 10 most chosen Health and Beauty brands in Rural. Sensodyne – one of the fastest growing brands in Health and Beauty in Urban 4 cities – continued to record impressive performance by posting robust growth of 41 per cent in CRPs and gaining more than 97,000 new households.

In Homecare, Unilever reinforced its dominance with three brands – Sunlight, Omo, and Comfort – being bought most often by consumers in both Urban 4 cities and Rural. Gaining two spots, Vim joins the top 10 club for the first time in Urban 4 key cities. Unilever now owns four out of the ten most chosen Home Care brands in the Urban ranking.

In the Food sector, Hao Hao and Nam Ngu were the most chosen brands again in Urban 4 cities and Rural, respectively. In addition to strong brand awareness and nationwide distribution networks, the two brands also keep engaging consumers by capturing the latest trends.

In Urban 4 cities, Cholimex was a star among the top 10 in terms of CRP growth. By climbing five ranks, the brand registered its name in the top 10 Urban ranking for the first time. Its growth is mainly driven by building a wide product range of sauces and spices with several new launches.

Chin-su saw impressive performance in 2018, being the fastest growing brand in Rural with a CRP growth of 23 per cent and it also posted strong growth of 10 per cent in Urban 4 key cities. The key driver of its success was the rapid expansion of its chili sauce, tomato sauce, and oyster sauce.

Coca-Cola remained the most chosen brand in the Beverage sector, selected 10 million times by 70 per cent of households in Urban 4 cities. Moreover, the world’s most chosen brand significantly widened its reach in Rural Vietnam, recording double-digit growth in CRPs in 2018.

Vinamilk continued to shine as the leader in Dairy and Dairy Substitutes, with its CRP numbers leaving other brands behind in both Urban 4 cities and Rural.

Source: Vneconomictimes

Vietnam ramps up pressure on Google’s YouTube advertisers

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Vietnam has asked companies not to advertise on videos hosted by Google’s YouTube that contain “anti-state propaganda,” state media said on Wednesday, as the Southeast Asian country ramps up pressure on global tech giants.

“Google was found to loosely manage its content, allowing users to buy ads directly from YouTube and Google without the involvement of domestic ad agents,” the Vietnam News Agency (VNA) said, referring to a June 7 announcement by the Ministry of Information and Communications.

The ministry listed several foreign companies, including Samsung Electronics, Huawei Technologies, Yamaha Motors and ride-sharing app Grab, which were found to have advertised on videos containing “illegal and malicious content,” it added.

Vietnam’s information ministry has identified about 55,000 YouTube videos it deemed “harmful”, or in violation of Vietnamese law, the agency said. Of these, 8,000 were deleted at the request of Vietnamese authorities.

“In the near future, the authorities will ask YouTube to identify Vietnamese channels, and only certified ones will be considered for ad revenue sharing,” it added, without elaborating.

A law on cybersecurity took effect in January that requires companies to set up offices in Vietnam and store data there.

In the months before the introduction of the law, Facebook increased curbs on content by more than 500% in Vietnam, the social media giant said last month.

In January, days after the new law took effect, Vietnam said Facebook had violated it by letting users post anti-government comments.

Vietnam’s information ministry has asked businesses to “actively review” their advertising on social media, VNA said.

“The (information) ministry will work with the State Bank of Vietnam and relevant agencies to closely manage ad revenue flows on YouTube and Google,” it said.

Reuters could not immediately reach a Google spokesman to seek comment.

Source: Reuters

Southern provinces set to suffer power shortage

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Delays in many electricity projects threaten the south of Vietnam with power shortages next year, the industry ministry says.
The Ministry of Industry and Trade said in a report that 47 of 62 approved power plants are behind schedule by a few months to as long as five years. Most of the projects are located in the south.

One of the reasons for the delay is the lack of coordination between electricity planning and other areas like traffic, land and urban planning.

Some projects have been modified several times because contractors need to choose new locations for substations to avoid stepping on existing plans of other areas.

Land acquisition is another challenge as locals refuse to accept compensation, saying it is too low.

Another reason for power shortage is a lack of raw material. The supply of gas needed to fuel the Phu My Thermal Power Plant in the southern Ba Ria-Vung Tau Province, one of the major power producers in the country, is set to reduce, the report said.

The plant will see a shortage of 3 billion cubic meter of gas in 2024, and this figure will rapidly rise to 10 billion in 2030.

“If the generators from these new projects are not reliable or there is a lack of material such as coal, there might be a power shortage in 2020.”

It estimates the power shortage at 3.7 billion kWh in 2021 and rising to a peak of 12 billion kWh in 2023 before falling to 3.5 kWh in 2025.

The government plans to increase the country’s power capacity by 6.900 MW this year and the next with new power plants becoming operational. Solar and wind projects are set to contribute 55 percent of the increased capacity, 36 percent is to come from coal-fired power plants and 9 percent from hydropower plants.

Vietnam Electricity (EVN), the national power utility, said last month that Vietnam is seeing a surge in electricity demand as summer heat intensifies while water shortage constrains power production.

The national grid will have its capacity increased by up to 1,400 MW by the end of June with 90 new solar power plants becoming operational.

But this is more a challenge than an opportunity, as technical difficulties in the initial period will not guarantee stability and quality, said Nguyen Duc Ninh, deputy director of National Load Dispatch Center under EVN.

Despite the challenges it is facing, EVN has said it will ensure sufficient power supply this year.

Vietnam’s rapid economic growth in recently years has increased its energy needs significantly.

World Bank country director for Vietnam, Ousmane Dione, said earlier that Vietnam would need to raise up to $150 billion by 2030 to develop its energy sector. He said electricity demand in the country is set to grow by about 8 percent a year for the next decade.

Source: Vnexpress

Spirited Vietnam to play five games in 2022 World Cup qualifying campaign this year

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Vietnam will have five games during the Asian section of the 2022 FIFA World Cup qualification from now to year-end, and the Golden Stars are expected to play all of them in high spirits given their success at a recent international tourney.

Playing Asia’s qualifiers for Qatar 2022 is the much-anticipated activity of the national team in the second half of this year, Le Hoai Anh, general secretary of the Vietnam Football Federation, told Tuoi Tre (Youth) newspaper on Monday.

Vietnam’s football supporters had strongly believed that their beloved team could make a miracle to play at Qatar 2022 when FIFA was considering making it a 48-team event.

FIFA delayed that plan to the 2026 edition, but it did not mean Vietnamese football fans would stop cherishing their World Cup dream.

Fans now expect to see the Golden Stars fly high at Asia’s qualifiers, after the team finished second at the King’s Cup 2019 in Thailand.

The second-place title, which came after a penalty shootout loss to Curacao on Saturday, is still considered a success for Vietnam, as it helped the country go up one spot in the latest FIFA World Rankings.

Vietnam, now standing at 15th in Asia and 97th in the world, will play the Asian qualifiers for Qatar 2022 as one of the continent’s top 16 teams, which is a big advantage for the team, as far as the qualification structure is concerned.

The Asian section of the 2022 FIFA World Cup qualification consists of four rounds.

Twelve teams, which rank from 35th to 46th in Asia, are competing in the first round, played on a home-and-away two-legged format, while Vietnam already qualified for the second round.

During the second round, six first round winners and 34 teams, ranking 1st to 34th, are divided into eight groups of five teams to play home-and-away round-robin matches.

Prior to the group draw, the 40 teams will be divided into five pots based on their FIFA rankings, with the first pot consisting of Asia’s top eight teams, and those ranking 9th to 16th fall into the second pot, and so on.

Vietnam have a big advantage as they will be in the second pot. No matter what group they are in, Vietnam will have to face only one out of the eight top-seeded opponents, while the other three teams in their group all have lower FIFA rankings than theirs.

The eight group winners and the four best group runners-up of the second round will advance to the third round of FIFA World Cup qualification as well as qualify for the 2023 AFC Asian Cup finals.

Local football experts and supporters believe that Vietnam will make it through the second round as one of the best four runners-up.

Progressing into the third round of Asia’s qualifiers means Vietnam will be among the last 12 Asian teams to vie for the 4.5 slots, consisting of four direct slots and one inter-confederation play-off ticket, available to play at the world’s biggest football competition.

It will mark a new milestone for Vietnam’s football.

The draw for the second-round Asian qualifiers of the 2022 FIFA World Cup will be conducted in Qatar on July 17.

According to a report on Tuoi Tre News

Vietnam has asked companies not to advertise on video hosted by Youtube that contain “anti-state propaganda”

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Vietnam has asked companies not to advertise on videos hosted by Google’s YouTube that contain “anti-state propaganda,” state media said on Wednesday, as the Southeast Asian country ramps up pressure on global tech giants.

“Google was found to loosely manage its content, allowing users to buy ads directly from YouTube and Google without the involvement of domestic ad agents,” the Vietnam News Agency (VNA) said, referring to a June 7 announcement by the Ministry of Information and Communications.

The ministry listed several foreign companies, including Samsung Electronics, Huawei Technologies, Yamaha Motors and ride-sharing app Grab, which were found to have advertised on videos containing “illegal and malicious content,” it added.

Vietnam’s information ministry has identified about 55,000 YouTube videos it deemed “harmful”, or in violation of Vietnamese law, the agency said. Of these, 8,000 were deleted at the request of Vietnamese authorities.

“In the near future, the authorities will ask YouTube to identify Vietnamese channels, and only certified ones will be considered for ad revenue sharing,” it added, without elaborating.

A law on cybersecurity took effect in January that requires companies to set up offices in Vietnam and store data there.

In the months before the introduction of the law, Facebook increased curbs on content by more than 500% in Vietnam, the social media giant said last month.

In January, days after the new law took effect, Vietnam said Facebook had violated it by letting users post anti-government comments.

Vietnam’s information ministry has asked businesses to “actively review” their advertising on social media, VNA said.

“The (information) ministry will work with the State Bank of Vietnam and relevant agencies to closely manage ad revenue flows on YouTube and Google,” it said.

According to a report on Reuters

Vietnam to be among world’s most dynamic markets by 2030

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With an emerging market economy and continued strong growth, Vietnam is set to become one of the most dynamic markets in the world by 2030, according to Euromonitor International, a global market research company.

An Hodgson, Euromonitor International’s income and expenditure research manager, said the company’s research database showed that urbanisation, with the associated concentration of income, wealth and population, would propel Vietnam’s commercial success by 2030.

Published last month, the research database has found that Vietnam will be the third biggest urban market by consumer numbers and fifth biggest by total spending in Southeast Asia.

By 2030, the country’s urban consumer market will expand to 46 million consumers and $169 billion worth of spending.

GDP growth is expected to reach 91.4 per cent in the 2019-2030 period and disposable income to $9,740 per household by 2030.

There will be 17 million middle class households in 2030, according to the company’s research.

The burgeoning middle class in Vietnam will drive consumer spending growth as well as give rise to new consumer trends by 2030.

“One in two households will be middle class by 2030,” she said. “The essence of a middle-class consumer is the ability to spend on discretionary items.”

Representing an increase of 34 per cent from 2018, Vietnamese middle-class consumers are “aspirational, brand-aware and price-conscious”.

Rural consumers also remain important. In 2030, rural residents, which number 61 million, are expected to spend a total of $173 billion.

Ageing population

There are gaps between the products and services that are currently available and those that older consumers actually want and need.

According to Euromonitor, the fastest-growing population segment is 70 to 79 years old.

By 2030, 12.4 per cent of the Vietnamese population will be aged 65 and above, which equates to a market size of 13 million elderly consumers.

The over-65 segment is the third lowest-earning age group, with an average gross income of VNĐ57 million ($2,560) in 2018.

However, their real purchasing power is set to grow the fastest of all age groups up to 2030.

“Older consumers feel, behave and want to be treated as younger people are. They want branding to focus more on needs, interests and values that include consumer experience, convenience, authenticity and novelty,” Hodgson said.

“Businesses that adopt more universal strategies rather than applying age labels can effectively win ageing consumers, while also appealing to younger consumers,” she added.

In 2030, Vietnam is expected to be the fifth largest economy in Southeast Asia where 50 per cent of the households will have an annual disposable income of $5,000 to $15,000.

Although the population is price-sensitive, consumers are willing to pay higher prices for branded products deemed to be healthier or better-quality.

In addition, according to Euromonitor, internet retailing is set to double its market size and reach $5 billion by 2023. While online shopping is not yet prevalent in Vietnam, brands and retailers should stay ahead of e-commerce.

The conference also discussed major global consumer trends and their impact in Vietnam and Southeast Asia.

According to Euromonitor, Vietnam and the Southeast Asia region remain the key focus of global business developments due to healthy economic growth.

The conference provided insights on how companies could tap into the Vietnamese market.

Euromonitor International is the world’s leading provider for global business intelligence and strategic market analysis. During the last 40 years, it has been publishing international market reports, business reference books and online databases on consumer markets.

According to a report on VNS

Vietnam to removes daily transaction limit for e-wallet users

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Following the removal of the limit, Vietnam’s central bank said it would only maintain the monthly limit of VND100 million (US$4,284) for each individual.

The State Bank of Vietnam (SBV), the country’s central bank, plans to lift the daily transaction limit at VND20 million (US$856.81) for e-wallet users, the governmental portal reported.

The SBV announced the information at its press briefing held on June 10, responding to the recommendation of the Vietnam Chamber of Commerce and Industry (VCCI) that such limit does not reflect actual transactions, as the prices of some electronic products and services have exceeded the VND20-million threshold.

Following the lifting of the limit, the SBV said it would only maintain the monthly limit of VND100 million (US$4,284) for each individual.

Statistics recently showed that the average transaction value through each e-wallet reaches VND58,000 (US$2.49) a day, totaling merely VND1.74 million (US$74.56) a month. Meanwhile, the average figure globally is estimated at VND5 million (US$206) per month.

Pham Tien Dung, head of the SBV’s Payment System Department, said Vietnam’s monthly limit is not low compared to other countries.

Nevertheless, Dung noted there has been growing trend of e-wallet provider allowing cash topping up , ewallet-to-ewallet transfer and cash withdrawal.

This would mean e-wallets now promote the use of cash, Dung added.

Dung said the recent pilot service of mobile money, which allows people to transfer money through cellphone account instead of a bank account, is also considered a type of e-wallet. Therefore, the limit transaction value for these e-wallet would range from VND5 – 10 million (US$214.17 – 428.34) per day.

According to Dung, a restriction on transaction value through e-wallet would stand in stark contrast with the government’s policies to promote non-cash payment over the past few years.

Nevertheless, users can turn to mobile banking for non-cash payment with large transactions, Dung continued, saying a limitation to transaction through e-wallet is a common international practice.

Moreover, a transaction limit is required to prevent the exploitation of possible loopholes during the verification process, namely the Know Your Customer (KYC), Dung asserted.

This is particularly important in Vietnam as such process has not been fully optimized, causing difficulties for local authority tracking the owners of e-wallets in potential cases of fraud or money laundering, Dung stated.

The Ministry of Industry and Trade informed e-payment in Vietnam recorded one of the highest growth rates in the world, at 35% per year, leading to a booming of e-wallet providers over the past few years.

However, as of the end of 2018, only 4.2 million e-wallet users have linked to bank accounts, while transactions through e-wallet only accounted for nearly 1% of total non-cash payment value.

According to a plan on non-cash payment in Vietnam in the 2016 – 2020 period approved by the prime minister, by the end of 2020, the ratio of cash transactions will be reduced from 90% in 2016 to below 10%.

According to a report on Hanoi Times

Tan Son Nhat airport to stop making announcements via loudspeakers

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Passengers at Tan Son Nhat International Airport in Ho Chi Minh City will from next month have to keep track of their flight information, save for boarding gate changes, by themselves as they will no longer receive reminders via the loudspeaker system there.

Tan Son Nhat will stop making announcements such as final calls for boarding and flight status changes, as well as paging specific passengers who are about to miss their flights, over the public address system, according to the airport management.

The only announcement to be made via the loudspeaker system is gate changes.

The change will take effect from July 1 at its international terminal, and October 1 at the domestic one.

Passengers will have to watch the clock so as not to miss their flights, or pay attention to electronic display boards that show all flight information, including delays and cancelations, at the airport.

The move is meant to make Tan Son Nhat a more pleasant and quiet airport and to ensure passengers will not miss such important announcements as gate changes once it is the only information to be delivered via the loudspeakers.

Noise pollution caused by repeated loudspeaker announcements has become an issue at Tan Son Nhat, which is serving some 38 million passengers a year despite a designed capacity of only 25 million passengers.

However, many have expressed concerns that the move would only result in a larger number of passengers missing their flights as few may pay attention to the flight information displays.

While ‘going silent’ is a trend recently adopted by many major international airports, Vietnam should not immediately jump on this bandwagon, an aviation expert told Tuoi Tre (Youth) newspaper.

Stop making all announcements via loudspeakers at once will be an abrupt change bound to shock passengers, he said.

“I think the airport should first install more information screens and assign more attendants to assist passengers, so they have time to train themselves to rely less on announcements made over the public address system,” he said.

According to a report on Tuoi Tre News

Amazon beats Apple and Google to become the most valuable brand in the world

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Amazon has become the world’s most valuable brand at $315.5 billion after overtaking Google and Apple

Apple comes second, valued at $309.5 billion

Google is in third place, at $309 billion.

Amazon has overtaken Google and Apple to become the world’s most valuable brand at $315.5 billion, according to a ranking of global companies, up 52% on last year. CNBC reports.

Apple comes second, valued at $309.5 billion, with Google in third place, at $309 billion, according to the BrandZ Top 100 Most Valuable Global Brand ranking 2019, compiled by WPP research agency Kantar and released Tuesday.

Google and Apple had spent a combined 12 years at the top of the list, with Google taking the top spot in 2018.

Doreen Wang, Kantar’s global head of BrandZ, said Amazon’s jump was due to it selling a variety of services. “Amazon’s phenomenal brand value growth of almost $108 billion in the last year demonstrates how brands are now less anchored to individual categories and regions. The boundaries are blurring as technology fluency allow brands, such as Amazon, Google and Alibaba, to offer a range of services across multiple consumer touchpoints,” she said in a statement emailed to CNBC.

Amazon has been increasing investments in a range of companies as its core business slows, including self-driving car start-up Aurora and electric truck company Rivian, as well as expanding Amazon Air, its airplane business. It bought online pharmacy PillPack for $753 million in 2018 and last month led a $575 million funding round into food delivery company Deliveroo.

According to CNBC, four of the BrandZ top ten were made up of more traditional brands including Visa, McDonald’s and AT&T. Microsoft comes in at fourth place, as it did in 2018.

Technology companies have always dominated the ranking, with Microsoft taking the top spot when BrandZ began in 2006. This year, Alibaba (valued at $131.2 billion) overtook Tencent ($130.9 billion) to become the most valuable Chinese brand. There is a total of 15 Chinese brands in the list of 100 companies, including mobile handset company Xiaomi (valued at $19.8 billion) and Meituan ($18.8 billion), a tech platform people can use to order food deliveries, book hotel rooms and arrange bike rentals.

David Roth, chair of BrandZ, said the companies that did well were those that mastered this new model of different services. “Brands need to understand the value this type of model can create and should embrace its approach to be successful in the future,” he said in an emailed statement.

Tech, finance and retail brands dominate the overall ranking, making up more than two-thirds of its value, while luxury is the fastest-growing category.

To qualify for the ranking, brands must be publicly traded, or publish their financial results. BrandZ’s list combines measures of brand equity based on interviews with more than 3 million consumers about thousands of brands, with analysis of each company’s business and financial performance, using data from Kantar Worldpanel.

The world’s most valuable brands 2019

  1. Amazon $315.5 billion
  2. Apple $309.5 billion
  3. Google $309 billion
  4. Microsoft $251.2 billion
  5. Visa $177.9 billion
  6. Facebook $159 billion
  7. Alibaba $131.2 billion
  8. Tencent $130.9 billion
  9. McDonald’s $130.4 billion
  10. AT&T $108.4 billion
Source: BrandZ
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