Over 600 people are killed monthly in traffic accidents nation-wide according to a report released at a meeting held by the National Traffic Safety Committee on Wednesday.
According to the committee, although the number of traffic accidents and deaths and injuries had fallen considerably in Vietnam, there were still 1,905 people killed and 3,141 other injured in 4,030 accidents in the first three months of 2019.
Compared to the same period of 2018, the number of accidents fell by 644 or 13.78%, number of deaths fell by 244 or 11.35%, and injuries by 486 or 13.4%, the report said.
Some provinces which saw the highest number of accidents included Gia Lai, Thua Thien Hue, Long An, Hai Duong, Thanh Hoa, Dong Thap, and Vinh Phuc.
The reports showed that most of the accidents were caused by violations on lanes (23.31%), and speed 8.15%).
Addressing the meeting, Deputy PM Truong Hoa Binh who is chairman of the committee said that traffic safety situation was still a big problem in the country with many issues needed to be dealt with.
“In the first quarter of this year, 19 provinces reported rising number of traffic accidents compared to the same period last year,” he said. “Some serious accidents occurred including one in which a passenger bus crashed into a funeral and caused seven deaths and five injuries in Vinh Phuc Province. Traffic jams are also a headache for Hanoi and Ho Chi Minh City.”
Binh urged relevant agencies to closely look at and deal with each problem to improve traffic safety in the country in the second quarter.
“One of the biggest tasks we set now is to reduce the number of accidents caused by drunk and drug-positive drivers,” he said. We have seen an increasing number of tragic accidents recently caused by these drivers.”
The State Bank of Vietnam on Wednesday set the daily reference exchange rate for the dong at VND23,013 per U.S. dollar, up VND9 from the previous day and reaching the highest rate ever. With the current trading band of three percent, the ceiling rate applied by commercial banks for the day is VND23,703 to the dollar while the floor rate is VND22,322 VND per USD.
Since the start of 2019, the central bank’s reference exchange rate has increased by VND179 per USD, equivalent to a rise of 0.78 percent.
The opening hour rates at commercial banks stayed stable. As of 8:15 am, both Vietcombank and BIDV listed the buying rate at VND23,165 per USD and the selling rate at VND23,265 per USD, unchanged from Tuesday.
On Tuesday, the daily reference exchange rate passed the VND23,000-per-USD mark for the first time since it was introduced by the central bank in 2015.
The central bank adjusts the reference exchange rate, or mid-point rate, for the dollar/dong on a daily basis in a bid to stabilize the foreign exchange market. Banks are allowed to trade the greenback within +/- 3 percent of the mid-point.
Speaking with Tuoi Tre (Youth) newspaper, representatives from Vietnamese lenders said the recent constant growth reflects the SBV’s goal of bringing the rate up to par with actual trading forex rates on the market.
Supply of foreign currencies in Vietnam remains plentiful as the forex market shows no sign of tension, insiders said.
Lotte Card begins card business in Vietnam through its subsidiary there, the card firm said Wednesday. It is the first time a Korean card firm has launched a credit card business in the Southeast Asian country.
According to the company, Lotte Finance Vietnam, its Vietnamese operation that was launched in December recently introduced two credit cards.
The cards have no annual fees. With the cards, customers can get discounts of up to 30 percent at around 300 Lotte affiliate stores that operating in Vietnam, including the fast-food chain Lotteria, coffee chain Angel-in-Us and Lotte Cinema. Koreatimes reports
The cards accumulate up to 0.5 percent of purchases in Vietnam and a maximum of 1 percent of purchases outside Vietnam as points. The points can be switched to mileage for Vietnam Airlines.
Lotte Card expects the cards to play a role in attracting Vietnamese tourists to Korea.
The cards accumulate up to 3 percent of purchases at Lotte affiliates in Korea as points, and the platinum card offers services for acquiring Korean travel visas and also provides travelers’ insurance that covers up to $435,200, free of charge.
“The goal of Lotte Finance Vietnam is to become the most trusted and popular finance company for the Vietnamese people,” Lotte Finance General Director Kim Jong-geuk said.
“We will contribute to developing the non-cash payment system and the financial market in Vietnam.”
Lotte Group’s credit card unit opened an office in Vietnam in 2009 to make inroads into the country’s fast-growing consumer finance market. Last year, it acquired 100 percent of shares of Techcom Finance, a subsidiary of Techcombank which is one of Vietnam’s five largest banks, launching Lotte Finance Vietnam.
Vietnam’s consumer finance market is small compared to that of other Southeast Asian countries, but is expected to expand rapidly based on growth in household consumption and the large population of young people.
Lotte Card is set to launch two additional cards in partnership with Lotte affiliates in Vietnam in the latter half of this year. In 2018, it launched customer loan and installment finance services.
Lotte Card is the fifth-largest credit card company in Korea.
You plan to expand your business in Vietnam’s Industrial Zones, but don’t know how to pick the best location for your business?
Vietnam developed industrial zones to further boost foreign investment into the country. Vietnam Briefing explains the industrial park system, how a businessperson can evaluate industrial zones, and some of the advantages of setting up in an industrial zone.
Industrial Zones are locations that are earmarked by the government for the production of industrial goods and services. Typically, industrial zones complement certain activities – such as production, export, or hi-tech – and have incentives for business that set up there.
Accordingly, industrial zones are a popular investment destination for foreign businesses.
The number of industrial zones in Vietnam continues to rise as foreign investment pours in. As of December 2018, there were 326 industrial zones set up countrywide, with 249 already in operation. The occupancy rate reached 73 percent, according to the Ministry of Planning and Investment.
By the end of 2018, industrial and economic zones attracted 7,500 domestic projects worth US$41.75 billion and around 8,000 foreign projects with a total capital over US$145 billion. Meanwhile, the Department of Economic Zones Management is in the process of drafting a legal framework to attract more foreign and domestic investments.
While industrial zones work well for many businesses in the country, investors should take the time to learn more before creating a shortlist of locations to visit. Here, we highlight the most important considerations for your business to consider.
Industrial zone locations
Vietnam’s industrial zones are spread out across the country, and are concentrated within three administrative regions – the Northern, Central and Southern regions. Each region has its own characteristics, as well as unique incentive programs.
Northern region
The Northern region comprises of 25 provinces, with the North Key Economic Zone (NKEZ) making up seven several cities and provinces, including Hanoi, Hai Phong, Bac Ninh, Hai Duong, Hung Yen, Vinh Phuc, and Quang Ninh. The area has seen significant development in the past five to 10 years.
This proximity of this area to China is particularly suitable for companies that want to move manufacturing operations to Vietnam but continue operating in China. This is also part of the China plus one strategy.
Central region
The Central Key Economic Zone (CKEZ) compromises of five provinces – Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, and Binh Danh, with the major of activity occurring around Da Nang.
The Central region is not as established as its neighbors are in the north and south; however, opportunities in this region are likely to materialize in the next few years. Key industries include light industry projects such as food processing.
Southern region
The Southern Key Economic Zone (SKEZ) is made up mainly eight cities and provinces, including Ho Chi Minh City, Binh Duong, Dong Nai, Long An, Ba Ria-Vung Tau, Binh Phuoc, Tay Ninh and Tien Giang. This region, particularly around Ho Chi Minh City, has the most active economic zone across the country. It is known as an industrial hub, which attracts the highest FDI given the favorable investment climate.
Location considerations for industrial zones
Foreign Investment Enterprises (FIEs) should first consider geographic location. This involves research into the advantages and disadvantages of locations of industrial parks considered.
According to the 2018 Provincial Competitiveness Index, the top ranked provinces in 2018 were Quang Ninh (North), Dong Thap (South), Long An (South), Ben Tre (South), and Da Nang (Central); representative of all different regions of Vietnam.
Options can be narrowed down by geographical concentration of industries as some regions host more enterprises from a specific industry than others do (see infographic above). Representing some of Vietnam’s main export sectors, garment and textile manufacturing are concentrated in both north and south Vietnam, while footwear and furniture manufacturing are both concentrated in south Vietnam.
The north is arguably the better choice for an enterprise importing input goods from China, while the south has the advantage of being near the largest commercial port in Vietnam. Proximity to key destinations such as airports, seaports, major cities, main highways, and borders are also important
Industrial zones possess land use rights from the government and essentially sublease their land and existing factories to tenants for a period of up to fifty years, depending on when the industrial zone was established. Prices vary considerably and depend on a number of factors that influence demand, including the location and quality of the industrial park.
Talent in Vietnam’s North, Central and Southern regions
Vietnam’s key attraction to foreign investors is the low cost of labor. Talent is available and competitive in the North. Cities such as Hanoi and Hai Phong in particularly have an ample supply of qualified workers.
Finding the right workers in Central region can prove more challenging than in other regions. Workers in technical fields often find better opportunities in the north and south. Foreign investors are likely to find it challenging to hiring and retaining staff in specialized fields or high-level positions.
In the Southern region, talent is available and supported by various education institutions around Ho Chi Minh City; however, competition is high between employers for talent in this area.
Vietnam’s minimum wage is a tiered system ranging from US$125 to US$180 per month, based on the region. Areas such as Hanoi and HCMC command a higher minimum wage, while Vinh Phuc, Phu Tho, and Bac Giang have lower minimum wage levels.
Average salary can vary from US$500 to US$2,000 for industrial workers and managers, depending on the industry and skill level. Overtime, overtime wages, and social insurance should also be taken into consideration.
Infrastructure development in industrial zones
Infrastructure is often a deciding factor with regard to the success of an industrial zone. Industrial zones that have failed to attract enterprises in the past often lacked good infrastructure and management – the country’s infrastructure has been a bit slow to develop amidst rapid industrialization.
As Vietnam continues to attract FDI, industrial zones have been improving their infrastructure to meet international standards. Improvements include higher quality industrial parks in general, while investors should pay specific attention to assessing the quality of factory buildings and warehouses, sources of electricity and water, wastewater treatment plants, garbage disposals, fire prevention systems, improved telecommunications, access to banks and post offices, logistic services, and internal roads.
Many industrial zones are located near national highways that lead to airports, seaports, and rail stations for easy transport among other conveniences. According to the 2018 Provincial Competitiveness Index, Binh Duong, Da Nang, Vinh Phuc, Hai Duong, and Ba Ria-Vung Tau were the five provinces that were rated as having the best infrastructure.
Types of Industries
The government has designated and provided incentives to certain industries in the North, Central and Southern regions. We look at the three regions and the industry specific sectors unique to them.
The NKEZ consists of eight municipalities and provinces focusing mainly on agricultural products and includes Hanoi, Hai Phong City and the provinces of Bac Ninh, Ha Tay, Hai Duong and Hung Yen.
The CKEZ has been known for its marine economy. Over the next few years, authorities in the CKEZ area aim to increase development in sectors such as oil and gas, ship building, logistics, and other high-tech industries. It includes Da Nang City and the provinces of Binh Dinh, Thua Thien Hue, Quang Nam and Quang Ngai.
The SKEZ is dedicated to the development of commerce, exports, technology, services, and telecommunications. Its areas include Ho Chi Minh City and the provinces of Binh Duong, Ba Ria-Vung Tau, Dong Nai, Tay Ninh and Binh Phoc.
FIEs looking to establish operations in an industrial zone should consider the types of industries already represented by existing tenants and the supporting industries to understand the potential benefits to their own operations. For instance, it would be difficult for a low-end manufacturing company to minimize labor costs in an area with many hi-tech firms.
Incentives available in specialized zones
Vietnam has a series of incentives in place that encourage both domestic and foreign investment depending on various factors, including the regional profile.
Tax incentives include exemptions or reductions of Corporate Income Tax (CIT), Value-Added Tax (VAT) and import tariffs for specific periods, and are granted based on the business lines and location of the FIE.
Regulated encouraged sectors include education, healthcare, sports, culture, high technology, environmental protection, scientific research, infrastructural development, and software manufacturing. Administrative divisions or locations with investment incentives include disadvantaged or extremely disadvantaged areas, industrial parks, export-processing zones, hi-tech zones, and economic zones.
Preferential CIT has been set at 10 percent for a 15-year period for new investment projects in areas with difficult socio-economic conditions, in economic zones, and in high-tech zones.
The preferential CIT is applicable for the entire operational period for companies operating in the sectors of education and training, occupational training, healthcare, culture, sport, and the environment. Other reduced CIT slabs include 15 percent and 17 percent for enterprises involved in farming, breeding, processing of agriculture and aquaculture products.
Large manufacturing projects with investment capital of US$258,000 (6,000 billion VND) or more with minimum revenue of US$430,620,000 (10,000 billion VND) per annum for at least three years after the first year of operations or employing at least 3,000 people after three years of operation, also qualify for CIT incentives.
Additionally, exemptions from import duty and incentives on land rental are also offered to investors. Such incentives and exemptions depend on the industry and the location of investment.
Contact an in-country advisor
FIEs choosing to set up in an industrial zone should carefully consider all the aforementioned factors to leverage suitable benefits for their operations. Location, talent, government incentives and infrastructure factors are key to having a successful operation in such industrial zones.
When weighing these factors, investors that are new to the country should consider using a professional service to learn more about whether an industrial zone makes sense for a given investment. Many factors are difficult to assess from abroad, while conditions on paper don’t always translate on-the-ground.
Note: This article was first published in November 2015 by Vietnam Briefing and has been updated to include the most recent developments.
NBC Universal International Formats has struck two deals for local remakes of entertainment shows with Vietnamese network VTV.
The first will see a local version of Japanese format Who Is The Real Celebrity (WITRC) (pictured) launch on VTV. TBIVision reports on Tuesday.
Produced by MEGA GS Communication and Entertainment, the 13×75’ version titled AI LÀ BẬC THẦY CHÍNH HIỆU will air on Fridays at 9pm on channel VTV 3.
Originally produced by Japan’s Asahi Broadcasting Corporation, WITRC is a comedy game show that tests celebrities’ knowledge and ability of identifying luxury items that come with a first class lifestyle. It sees six groups of celebrities compete in a series of challenges using only their five senses.
The show has played in Japan for over a decade. NBC Universal International Formats acquired the rights to the format from ABC International, a subsidiary of Asahi Broadcasting Group Holdings Corporation.
NBCUniversal International Formats has also signed a deal with MEGA GS Communication and Entertainment to bring a local version of Singer Auction to VTV. Originally co-developed with Thailand’s Zense Entertainment, Singer Auction is a primetime entertainment format that gives unknown vocalists the opportunity to showcase their talent.
The 13×75’ Vietnamese version will also air weekly at 9pm on VTV 3 in July.
Ana Langenberg, SVP, Format Sales & Production at NBC Universal International Formats said: “We acquired the hit Japanese series Who Is The Real Celebrity because we saw great potential in the format, particularly across other territories in Asia. Our co-developed format Singer Auction also has the potential to achieve similar success in Vietnam, so we’re really excited to see how MEGA GS’ adaptations perform. Both deals and shows are a testament to the rich diversity of television across Asia.”
Miss Vu Thi Bich Lien, CEO of MEGA GS Communication and Entertainment added: “We are confident these two shows will appeal to our audience due to their entertainment and comedic elements.”
Vietnamese tech giant FPT Corporation and Japan’s SBI Holdings have signed a memorandum of understanding to invest US$3 million in Utop, a blockchain startup in Vietnam.
According to news sources seen on the FPT’s website, Utop will apply the blockchain technology of FPT to connect enterprise networks and manage and exchange reward points. Utop will help users accumulate and use reward points in a new and creative way at connected stores and firms.
The convenience offered by Utop is expected to upgrade many firms’ operations and help these firms gain a better foothold in the local market.
Utop was developed based on FPT’s akaChain blockchain platform, which is being deployed in many countries and provides a range of services relevant to the finance, insurance and retail sectors.
Aside from expanding the reach of firms and small stores in the local market, Utop will support them in beefing up the efficiency of their promotional and customer care programs.
Representatives of FPT and SBI signed the $3 million deal in Tokyo. | Source: FPT
“SBI and FPT have cooperated effectively over the past few years. Given the success of akaChain, the technology capacity and the large customer base of FPT, SBI strongly believes this is the most suitable moment to launch Utop,” SBI Chairman and General Director Yoshitaka Kitao said, adding that the startup has high potential for gaining ground in the coming period.
Truong Gia Binh, FPT chairman, said, “Utop will help thousands of Vietnamese firms seize more business opportunities, offering convenient shopping experiences to millions of Vietnamese consumers.” Further, the startup is expected to boost the country’s digital economy development.
Utop had earlier been piloted as part of FPT’s activities in the finance, retail and insurance sectors in end-2018. The cooperation between FPT and SBI will shore up its operations in the future.
In Vietnam, acquisition of funds that helps you to build your startup is an immense challenge, especially if you do not know from where you should start. Confiding to your startup platform, and trailing the incorrect path would keep you away from raising the necessary funds, and it will be a waste of time.
There are various options for securing capital for your business such as investors in marketplaces, crowdfunding, angel investors. Today in the marketplace, it is easier to raise funds than before.
Ambitious ride-hailing startup Go-Jek’s Southeast Asia expansion plan suffered a blow when it lost the leadership team behind its business in Vietnam, but now it has replaced them with the former head of Facebook in the country.
Christy Trang Le, who led Facebook’s business in Vietnam for nine months before quitting for family reasons in early 2019 , has become new CEO of Go-Viet, which is the name of Go-Jek business in the country. Le is best known as a co-founder of Misfit, the U.S-Vietnam wearable startup that was acquired by Fossil for $260 million in 2015 — indeed, Misfit CEO Sonny Vu is her husband.
Christy Trang Le
Le, who was previously CFO/COO of Misfit before becoming head of Fossil Vietnam, replaces Nguyen Vu Duc and Nguyen Bao Linh who left their positions as general director and deputy general director, respectively, at the end of March. Go-Jek said that the duo are staying on as “advisors” but their exit sparked suggestions that Go-Jek’s expansion to Vietnam, the first market it moved into beyond its Indonesia homeland, isn’t going as well as had been assumed.
Go-Jek is valued at $9.5 billion and it has also expanded to Thailand and Singapore with the Philippines in its plans. The startup has been pretty boastful of the apparent market share it has picked up in Vietnam, where $14 billion-valued Grab is its main competitor. Go-Jek said in February that it estimated it had gained 40 percent of the two-wheeled taxi market within three months of its launch in August and that its food service became “the leading player among comparable food delivery services.”
Go-Jek said in a statement today that Go-Viet has “completed millions of trips” and is growing at 50 percent per month.
Take all those numbers with a pinch of salt since it isn’t clear where the figures originate from and Go-Jek is in ‘fundraising mode’ right now. Even giving it the benefit of the doubt, any market share it gained on arrival would likely be down to the generous subsidies that are typically dolled out when a new company comes to town.
Still, bringing in a new leader — and one with the background of Le — looks like a coup, although her role building out Go-Viet’s on-demand business will be quite different from that of anchoring Facebook or running Misfit/Fossil.
“I’ve seen how the success of Go-Jek’s multi-service platform has transformed the lives of so many people in Indonesia and want to see the same happen in Vietnam,” Le said in a statement.
Get a first look at the track layout ahead of the first Vietnam Grand Prix in 2020.
Formula 1’s countdown to the inaugural Vietnam Grand Prix in 2020 has continued with the release of a virtual look at the layout for the Hanoi Street Circuit. On Twister, it said “FIRST LOOK: go onboard for a lap of the Hanoi Street Circuit Coming to F1 in 2020…”
F1 announced back in November that Hanoi would host F1 from 2020 on a multi-year deal, with the first race scheduled for April next year.
Renders of the planned 5.565km-long, 22-corner circuit designed by Hermann Tilke were released at the time of the announcement, but F1 has now released a first look at what a hot lap may look like from the cockpit of a car.
The track design has taken inspiration from a number of the world’s great racing circuits, including the Nurburgring, Suzuka, and even the Monaco street course.
Vietnam marks the first new race to be added to the F1 calendar following Liberty Media’s takeover of the sport in January 2017.
Vietnam is known as an outsourcing software destination but local IT businesses are expanding into other technology areas such as AI and fintech.
For years, MNCs like Intel, IBM, Samsung Display, Nokia and Microsoft have chosen Vietnam to outsource their software projects. Last year, Vietnam exported $3.5 billion worth of software, up 11.6 percent from 2017, according to the Ministry of Information and Communications.
But a recent report by HCMC-based IT recruiting firm TopDev showed that local companies are branching out to different areas also.
Artificial Intelligence (AI) is one of them. Technology giant FPT, telecommunications giant Viettel and online gaming giant VNG in recent years have been developing and coming up with solutions to apply AI in real life.
Conglomerate Vingroup has also announced it would establish an AI research institute as part of its technology arm VinTech.
Big demand has resulted in a higher pay check for AI engineers in the country, TopDev says. Its data shows that an AI engineer or machine learning engineer could earn up to $1,678 a month, 21 percent higher than the average salary for an experienced IT developer of $1,318.
Fintech is another area believed to have big potentials in Vietnam, as the development of mobile payment services could increase the number of cashless payments in the country.
Since last October, ride-hailing app Grab has partnered with e-payment Moca to allow users to pay electronically for their rides. Another mobile payment service, Momo, reached 10 million users in Vietnam last year.
There are at least 64 companies providing fintech services in the country, but this figure is still lower than 490 in Singapore, 262 in Indonesia and 196 in Malaysia, TopDev said, adding that this means there are still opportunities in this area for large companies and future startups in Vietnam.
Vietnam’s fintech market reached $4.4 billion in 2017 and is estimated to grow to $7.8 billion by next year, according to consulting firm Solidiance.
The report added that other IT areas that Vietnamese businesses are expanding into are blockchain, software as a service (SAAS) and e-commerce.
IT is a growing industry in the country which is promoting the development of Industry 4.0. A report by recruitment firm ManpowerGroup released in January said that IT will be the industry with the highest recruitment demand this year with 14 percent increase compared to last year.
Formula One boss Chase Carey said next year’s inaugural race in Hanoi will be “uniquely exciting” thanks to a street track he hopes will help make the event a global spectacle.
Carey was speaking Monday after inspecting initial work on the 5.6 kilometre (3.5 mile) track that will combine existing roads with newly-built routes in the Vietnamese capital, which is hosting its first F1 race from April 2020.
“We think this track can really be a special race that provides some uniquely exciting racing and competition,” he told reporters.
“It’s the combination of a city race — we’re in the city centre — a street race which always has some special elements to it, and a track that I think we’ve really had the opportunity to work (on) from day one,” said Carey.
The course has been designed “in a way that we think can deliver some special racing for fans,” he added.
The track is around Hanoi’s My Dinh stadium, about 13 kilometres from the city centre after it was deemed too expensive to hold the race in the city’s famed Old Quarter.
Carey compared plans for the Hanoi track to Britain’s Silverstone and Spa-Francorchamps in Belgium, which he called “historic” sites.
Carey said he was happy with Hanoi’s pre-race progress so far but warned organisers to keep at it.
“There’s a lot to get done, so the right thing is to continue to worry, not to take things for granted.”
Formula One announced last year it would host its first ever race in Vietnam as it seeks to gain a foothold in Asia, where the franchise has a patchy track record.
The Marina Bay Sands street track night race in Singapore remains F1’s crown jewel in Asia, with the city state’s Grand Prix drawing 263,000 fans last year.
But Malaysia, South Korea and India have all pulled the plug on hosting races in recent years after hemorrhaging money.
Vietnam — where racing is a marginal sport — is hoping to avoid those pitfalls.
It has not said how much it will cost to host the event, but has vowed not to dip into government coffers to fund it.
Instead the country’s largest privately-owned conglomerate VinGroup is the main financial backer.
Carey hopes Vietnam will adopt a winning formula to ensure it doesn’t go the way of past flops.
“It’s got to have all the elements that creates the race at the centre, creates that excitement, and that energy and that breadth of activities that really enables it to be the spectacle we want it to be,” he said.
Mr. Pham Vu Hong, Chairman of the Kien Giang Provincial People’s Committee, has signed a petition that was then sent to the government on establishing Phu Quoc city on the basis of the existing Phu Quoc Island district, with one island and 21 other islets. If approved, Phu Quoc would become the first island city in Vietnam.
Phu Quoc Island district has an area of 589,275 sq km, or roughly the same size as Singapore. In recent years it has become an international-standard beach holiday, eco-tourism, and entertainment destination. It expects to have 12,000 five-star hotel rooms by 2020 and become a leading tourism resort city in Southeast Asia.
Phu Quoc also become a hub for international transportation and aviation recently, with a range of airlines opening regular and charter flights to the island, such as Vietnam Airlines, Vietjet Air, Jetstar Pacific Airlines, China Southern, and Lucky Air, among others.
The island has a sea area adjacent to ASEAN countries, is near international freight routes, is less than two hours by air from many ASEAN capitals, and is close to economic and tourism centers in regional countries.
According to figures from the Kien Giang Provincial People’s Committee, there are 304 investment projects on Phu Quoc, with total capital of VND361.054 trillion ($15.6 million). Among these, 215 are tourism development projects, 23 are urban development projects, eight are agricultural projects, eight are public service projects, and eight are projects leasing forests.
Under documents submitted to the government, Kien Giang province plans to establish Phu Quoc city with eight wards and a subordinate commune, including Duong Dong, An Thoi, Duong To, Ham Ninh, Cua Can, Cua Duong, Ganh Bau, and Bai Thom, and Tho Chau commune.
After establishment, Phu Quoc city would have a natural area of more than 589 sq km and a population of 127,709. It is located 120km southwest of Rach Gia city – Kien Giang’s administrative center.
According to Notice No. 27 from the Politburo, Phu Quoc Island district is to become one of special economic zones in Vietnam, joining Van Don in northern Quang Ninh province and Bac Van Phong in south-central Khanh Hoa province. However, the National Assembly is yet to pass the Law on Special Economic Administrative Units, so there is no legal basis at this time for establishing these special economic zones.
A number of apps, both homegrown and international, that were launched last year in an attempt to break the domination of Grab in Vietnam have silently ‘disappeared’ from the market due to apparent tough competition.
Uber’s exit from Southeast Asia, including Vietnam, in April 2018 enabled the regional rival Grab to easily dominate the Vietnamese market, while at the same time encouraged local transport companies to launch their own ride-hailing apps to fill in the blank left by the U.S. tech company.
Among those Vietnamese companies that hopped on the ride-hailing bandwagon were Mai Linh, Fast-Go, Vato, Aber, MLV, Go-ixe, and Xelo.
If many of these names sound unfamiliar to you, it’s because they are.
Even though they were launched with the main goal of competing with the market leader Grab, most of these newcomers struggled to attract both passengers and drivers, despite their appealing promotions and preferential policies.
Many of these Vietnamese apps have therefore left the market even before customers had a chance to know about them.
In June 2018, for instance, Aber, which was developed by a group of Vietnamese engineers in Europe, entered Vietnam’s ride-hailing market, offering as many as six different services including motorbike, car, delivery, and business car.
Aber said it stood out from competitors as the app applied no fare hike during peak hours, and only charged drivers a monthly rate based on their total income that month, instead of taking a cut from every ride they made.
But the company’s attempt to differentiate itself from other ride-hailing apps turned out to make no difference.
Aber has recently announced its temporary absence from the market “for a bigger return”, yet without saying when.
According to a company’s leader, Aber “has to find another direction” amid tough competition from such rivals with a lot of money to spend as Singapore-based super app Grab and Go-Viet, the Vietnamese brand of Indonesian transportation network Go-Jek.
A leader of local app VATO, which claimed to have received US$100 million from Vietnamese bus line Phuong Trang and was expected to be a ‘counterweight’ to Grab and Go-Viet, also admitted the same thing.
“As the competition from Grab and Go-Viet has been quite harsh, our company has to find a different direction,” said the VATO leader.
According to drivers and frequent customers of ride-hailing apps like Fast-Go, MLV, and Go-ixe, the coverage of these applications in the market is quite low, with only a small number of drivers, leading to long waiting time for both drivers and users.
Industry insiders say that the exit of these apps from the ride-hailing industry is already in sight.
Even fiercer competition awaits
Despite the demises of several Vietnamese ride-hailing apps, Tran Thanh Hai, general director of Vietnamese technology startup Be Group Corporation, believes there is still great potential for newcomers to join Vietnam’s technology-based transportation market.
The company launched its ride-hailing platform Be last December.
According to evaluation reports of some international organizations, Vietnam’s ride-hailing market revenue can reach US$500 million a year.
Hanoi and Ho Chi Minh City collectively account for 93 percent of the market, meaning there is plenty of room to grow for ride-hailing apps in other localities across the country.
Besides personal transportation, technology-based transportation companies are also expanding to other sectors, including food delivery, where competition is already fierce with two main players, Grab and Go-Viet.
“It is very wasteful to not take advantage of tens of thousands of drivers for other services such as goods delivery, food delivery, and personal shopper,” Hai of Be Group said, adding that his company has plans to join the food deliver sector.
Meanwhile, Grab said it has received an additional $1.46 billion from SoftBank’s Vision fund for business expansion from its current services of financing, food delivery, freight forwarding, digital content and digital payments.
Bui Danh Lien, former chairman of the Hanoi Transport Association, said competition in Vietnam’s technology-based transportation market is like a race to burn money.
“Only businesses with sufficient resources and a wise strategy can stay in and win the biggest market share,” Lien said.
The occupancy rates of office buildings located in advantageous positions are at a record high.
Unlike the housing market segment, offices for lease have been thriving thanks to high demand and the lack of new projects.
According to a report by Kim Chi on Vietnamnet, just after one year of operation, B-class E-Town Central with the total area of 34,000 square meters has a high occupancy rate of 94 percent. It is expected that REE, the investor, will put E-Town 5 (17,000 square meters) into operation in the third quarter, and start construction of E-Town 6, 40,000 square meters soon.
A report from Savills, a real estate consultancy firm, showed that Hanoi had the highest office yield in the world for the second half of 2018, with a market yield of 8.57 percent.
This was the third time since January 2018 the city ranked first in A-class office yield. HCMC dropped to the fourth position though the yield was still relatively high, at 7.36 percent.
The demand for offices will be supported by foreign investors heading for Vietnam because of the US-China trade war. The attractiveness of the office-for-lease segment will also come from the e-commerce boom and demand from technology and finance startups.
Analysts say there are many reasons to predict an optimistic trend in the market segment in upcoming years. The demand for offices will be supported by foreign investors heading for Vietnam because of the US-China trade war. The attractiveness of the office-for-lease segment will also come from the e-commerce boom and demand from technology and finance startups.
Most recently, an area of 10,000 square meters at the A-class Saigon Centre was leased to a well-known e-commerce platform. Sources said the company has to pay $500,000 a month for the business premises.
According to JLL, this was the biggest office leasing transaction in the last 10 years in HCMC.
The ‘co-working space’ movement has also given a push to the office-for-lease segment. The list of co-working spaces now includes dozens of names, including Toong, Hatch! Nest, Nest by AIA, Dreamplex and Saigon Cow.
Having realized the great potential of the Vietnamese market, WeWork, a well-known co-working space distributor from the US, has come to Vietnam.
While the demand is on the rise, the supply of offices for lease is not abundant, as only a few new office building projects have kicked off.
In HCMC, Lim Tower 3 is the only A-class office building to join the market this year. The other important projects, such as The Nexus on Ton Duc Thang street in district 1 and Alpha Town are going slowly and analysts believe that they will not open until 2020.
Office buildings in non-CBD areas are getting ready to receive tenants. These include the B-class Thaco Sala in district 2 and the Tower 1 building in the OneHub hi-tech park in district 9.
The State Bank of Vietnam (SBV) has proposed more regulations to tighten control over the opening and use of e-wallets, the local media reported.
According to the draft circular amending and supplementing Circular 39/2014, which guides the use of intermediary payment services, individuals and organizations wishing to open e-wallet accounts must provide sufficient information.
E-wallet service providers, such as MoMo, ZaloPay, AirPay, Moca and Payoo, have to check the information to ensure that the e-wallet accounts are legal.
Dr Bui Quang Tin from the Banking University of HCMC said it is reasonable to ask e-wallet users to provide their personal information to help prevent the use of e-wallets for illegal purposes.
However, e-wallet service providers should help users to complete the administrative procedures to open e-wallet accounts, Tin added.
In addition, e-wallet users must top up their e-wallets through their bank accounts, which may limit the number of e-wallet users as only 30% of the population have bank accounts.
Nevertheless, Nguyen Tri Hieu, a banking expert, said that the connection between e-wallets and bank accounts is necessary to prevent money laundering and corruption.
Meanwhile, an individual must not conduct transactions valued at more than VND20 million per day and VND100 million per month. The respective figures for organizations are VND100 million and VND500 million.
Hieu proposed doubling the transaction value limits stated in the draft circular, adding that e-wallet service providers should invest heavily in technologies to prevent potential losses.
Tin, however, said that the limits are too high as consumers mainly use e-wallets to pay for goods and services at low prices. In addition, regulations on transaction value limits are not as important as those on the security of e-wallets.
The tighter control over e-wallets may make consumers hesitate to make payments through them, which is not in line with the Government’s policies to encourage noncash payments, according to a representative of an e-wallet service firm.
The representative added that regulations allowing individuals to conduct transactions valued at no more than VND20 million per day were unreasonable. If the draft circular is approved, consumers cannot use their e-wallets to make payments for laptops, motorbikes or mobile phones.
Further, the draft circular regulates that e-wallet service providers are banned from offering credit to e-wallet users, paying interest on their balance or any other activities that may increase the balance of e-wallets.
The country currently has 23 types of e-wallets provided by 26 intermediary payment firms. The volume and value of goods and services paid through e-wallets increased 21% and 161% year-on-year, respectively, in the third quarter of last year, according to SBV.
As of 2018, 4.2 million e-wallets had been connected with bank accounts. Payments through e-wallets are becoming increasingly popular, especially in large cities.
Above GFS model shows a simulation of temperatures in degrees Celsius on Saturday afternoon in southeastern Asia. (TropicalTidBits.com)
Vietnam broke its record high national temperature Saturday, the latest in records to fall as the world continues to warm.
The scorcher set the mercury thermometer soaring to 43.4 Celsius (110 degrees Fahrenheit) in the community of Huong Khe, a rural district in Ha Tinh province. It’s situated in Vietnam’s northern central coast region, about 150 miles south of the capital, Hanoi. Its average temperature is in the 27 Celsius at this time of year. Matthew Cappucci reports on washingtonpost.com
A temperature of 43.4 Celsius is enough to soften your crayons, liquefy chocolate and raise the temperature inside a parked car past 60 Celsius.
The record was first reported by Etienne Kapikian, a forecaster with Meteo France, France’s meteorological agency.
Sweltering heat covered the entire Indochina peninsula over the weekend. Danang hit 37.7 Celsius. Hue topped 40.5 Celsius.
Much of Vietnam’s southern third has held in the 32.2s the past few days. Ho Chi Minh City experienced a high of 35s Monday.
What makes the heat even more striking is that it’s only April. Most places in Vietnam see their hottest temperatures in June or July.
Nguyen Vo lives in Danang. She’s part of a team that just concluded an environmental governance project with the U.S. Embassy in Vietnam. “We have a quote in Vietnamese,” she joked. “There are two seasons here: hot and hotter.”
But lately, the heat has been brutal.
“We’ve been scorching hot. The weather has been a bit strange lately. I had to purchase clothes for cold weather in February, but it ended up being so warm, I didn’t use them,” she said.
Phuong Hoang was in Hue when the temperatures climbed above 100 degrees. “It is unbreathable outside in this heat,” she wrote. “The temperature at 6 a.m. is already 30-31 degrees celsius.” That’s before the sun even came up.
The heat’s not just uncomfortable, she said. It’s taking a toll on residents.
“It is so hard to carry on your day in this,” she wrote. “But people have to. That’s the sad part.”
Air conditioning in Vietnam is primarily available to wealthier individuals. That sort of privilege is rare — the average monthly salary for most workers is less than $150 a month.
Hoang said the hot weather comes on the heels of a dry 2018. “Due to lack of rain, the hydropower dams are working with little water upstream,” she said.
Hoang works with government and private sector leaders to arrange educational programs studying climate impacts in Vietnam. Now she’s getting a firsthand glimpse of just how bad things will continue to get.
“It affects our daily life,” she said.
Saturday’s record follows news that March was the second-warmest on record for the globe.
