Nikkei: Danang poaches tourists from Phuket and Bali

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A central Vietnamese port city made infamous by a war that ended more than 40 years ago is now stepping up to compete with some of Southeast Asia’s most famous beach resorts. TOMOYA ONISHI reports on Nikkei.

But unlike Thailand’s Phuket and Indonesia’s Bali, Danang is not an island. As Vietnam’s third-largest city, it is beckoning guests from China and South Korea with luxury hotels and convenience. Proximity is its calling card. Its airport, city center and beaches are situated nearby one another. And it doesn’t hurt that huge numbers of vacation seekers are a handful of hours away.

According to Nikkei, in December 2018, the Hilton Da Nang became the latest upscale Western hotel to offer views of the sun rising over the South China Sea, taking its place near the Intercontinental and Hyatt Regency. And there are plans for Danang’s coastline to be dotted with other big hospitality names from the West.

The city might have another thing going in its favor -perception. It is not dogged by the safety concerns nor plagued by natural disasters.

Last summer, a sudden storm off Phuket capsized and sunk a tourist boat, killing 47 Chinese. In Bali, Mount Agung has been erupting since 2017, when it grounded flights and stranded tourists.

“In the past several years,” a Danang travel agent said, “the pace of growth here has far exceeded [that of Phuket and Bali], thanks to [Danang’s] good public safety record and lower risk of natural disasters.”

Vietnam’s Danang by night @phunutoday.vn

The number of hotel rooms in Danang has roughly tripled in the past five years. During the same period, domestic and foreign visitor arrivals soared about 2.5-fold. In 2018, Danang attracted some 7.6 million tourists, many of them Chinese and South Korean.

 

Although Danang is being compared to Phuket and Bali, its arrival numbers are between one-third and half of the comparable figures for its Thai and Indonesian rivals.

Seoul is about a $300 budget flight away from the emerging resort. “I am happy to be able to come here from Seoul in five hours,” said a 45-year-old South Korean engineer who has been to Danang twice. “I think its landscape and beach are very beautiful.”

China is even closer to Vietnam. To a public servant living in Beijing, “Danang resembles China’s Hainan Island. It has delicious food and reasonable prices.”

Danang was once well-known for the role it played during the Vietnam War. The U.S. built key military installations in Danang, including what is today’s airport. In 1965, the first U.S. combat troops to enter the war came ashore at Danang. Ten years later, Danang fell to the People’s Army of Vietnam in one of the bloodiest military campaigns of the war. Saigon, present-day Ho Chi Minh City, would fall a month later.

Now Danang is attracting a different kind of attention. In Airbnb’s 2018 rankings of trending travel destinations, Danang finished No. 5 globally and No. 1 in Southeast Asia. U.S.-based Airbnb is the world’s largest vacation booking website.

Unlike Hanoi and Ho Chi Minh City, Vietnam’s two largest cities, Danang does not fill visitors’ ears with incessant motorcycle and other noises. Time passes more slowly in the city of over a million, too.

For tourists who want to explore more of the country, three World Heritage sites are a single day’s journey away.

One is the ancient city of Hoi An, which hearkens back to its days as an important trading port. Its restaurants, boutiques and streetscapes maintain an old-time ambience.

Hoi An is also home to the Japanese Bridge, whose image is printed on 20,000-dong bank notes. The span is said to have been originally constructed in the 1590s by the town’s Japanese community.

The My Son Sanctuary and Complex of Hue Monuments are the other nearby World Heritage sites.

The driving force behind Danang’s rapid development, which began in 2000, was the late Nguyen Ba Thanh, an influential politician.

Thanh assumed important posts such as chairman of Danang’s People’s Committee, which is equivalent to mayor, and Communist Party secretary of Danang, between 1996 and 2012.

Under Thanh’s leadership, Danang sold some of its prime coastal real estate to foreign hotel operators and other developers. The proceeds were then used to finance roads, bridges and other infrastructure.

The Vietnamese government provided tax and other support to help Danang become a tourist destination and foreign-currency earner. State-run Vietnam Airlines, travel agencies and other parties joined in to aggressively promote Danang.

 

Featured photo: The central Vietnamese city of Danang wants to be known for its white-sand beaches -- and as a quieter, slower-paced alternative to Hanoi and Ho Chi Minh City. (Photo by Tomoya Onishi)

Vietnamese man nabbed for stirring up protests during second Trump-Kim summit

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Police in Vietnam have apprehend a man for spreading faux information on social media with an attempt to incite public demonstrations during the second U.S.-North Korea Summit that took place in Hanoi earlier this week.

The Department of Police in Ben Tre Province, located in the Mekong Delta, confirmed on Saturday they had arrested Nguyen Van Cong Em, 48, who resides in My Thanh Commune, Giong Trom District.

Em was charged for “making, storing, and disseminating information and documents against the state,” Lieutenant Colonel Nguyen Thanh Tung, deputy chief of staff of the provincial police, stated.

Officers previously searched the suspect’s home as well as inspected his Facebook accounts and discovered many items, documents, and data relating to the violations.

Em’s statement showed that he had used up to four Facebook accounts to upload and share posts as well as live-stream videos with contents that distorted the guidelines and policies of the Vietnamese Party and state.

He also called on people to participate in street protests during the second U.S.-North Korea Summit.

Officers are finalizing their investigation to impose a suitable punishment upon the suspect in accordance with the law.

North Korean leader Kim Jong Un and U.S. President Donald Trump met for their second summit in Hanoi on February 27 and 28.

Following his meetings with Chairman Kim on Thursday, President Trump told the press that the talks were effective and the two discussed a number of issues but decided that it was not the right time to sign a joint statement on sanctions and denuclearization.

The U.S. leader left Vietnam later that day while Chairman Kim remained in the country until March 2 for an official visit.

The first U.S.-North Korea Summit was held in Singapore in June 2018.

Source: Tuoitrenews

HCMC to spend $1.2 million on canal clean-up

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HCMC will spend more than VND28 billion ($1.2 million) to clear its canals off water hyacinth, other weeds and waste.
The municipal department of transport will start implementing the clean-up project this year on Nhieu Loc – Thi Nghe, Doi – Te, Tau Hu and Ben Nghe canals.

The total length of all canals is nearly 25 kilometers and the total water surface area is more than 400,000 square meters.

With one clean-up operation every two days, sanitation workers will pick up 35 tons of waste and water hyacinth per day, on average.

According to the department of natural resources and environment, 70 percent of the waste in canals is domestic waste, including foam, nylon, discarded furniture and animal carcasses. The remaining 30 percent comprise grass and water hyacinth.

The collected garbage will be taken to the Da Phuoc Landfill in Binh Chanh District.

Ho Chi Minh City currently has about 170 canals nearly 700 kilometers long that are covered with water hyacinth, which prevents water flow, increases pollution in the inner city and as well as the risk of disease outbreaks.

According to the municipal finance department, each year, the city allocates about VND1.1 trillion ($47.4 million) for maintaining its drainage system and VND2.8 trillion (about $120 million) and collecting garbage.

Source: Vnexpress

Vietnamese tourist denied entry into Taiwan over undeclared pork snack

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A Vietnamese woman fined $6,500 fine for not declaring a pork snack returned from Taiwan Wednesday without entering the territory.
The 56-year-old passenger, whose name has not been revealed, was intercepted at the Taichung Airport in central Taiwan Wednesday after custom officers discovered her carrying two sticky rice dumplings filled with nuggets of pork as gifts for her relatives, Taiwan News reported.

A fine of NT$200,000 ($6,488) was levied for undeclared pork imports, but she said she could not pay such a fine and left Taiwan the same day.

The woman is the first Vietnamese citizen to be denied entry since Taiwanese authorities announced a NT$200,000 fine on travelers from Vietnam if they brought pork products into Taiwan and a NT$ 1 million ($32,400) fine for repeat offenders, beginning February 20.

Following China and Mongolia, Vietnam has become the third Asian country hit by the incurable African swine fever, which has been detected in five provinces and cities across the country: Thai Binh, Hung Yen, Thanh Hoa, Ha Nam and Hai Phong.

The flu is a viral disease that infects all pig species through bodily fluids such as blood and mucus. It causes hemorrhagic fever with a 100 percent mortality rate. There is currently no cure for it.

However, humans are not affected by the disease.

Since the first confirmed case of African swine fever was reported in China’s Liaoning Province last August, Taiwan has been on high alert, worried that the spread of the virus could wipe out the territory’s pig farming industry.

The Bureau of Animal and Plant Health Inspection and Quarantine (BAPHIQ) revealed that 127 violations of illegal port imports have been reported in Taiwan so far, of which 126 came on flights from China and one from Vietnam.

Source: Vnexpress

Why Idiots Think They’re Awesome

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The Dunning-Kruger effect is a type of cognitive bias in which people believe that they are smarter and more capable than they really are.

Essentially, low ability people do not possess the skills needed to recognize their own incompetence. The combination of poor self-awareness and low cognitive ability leads them to overestimate their own capabilities.

The term lends a scientific name and explanation to a problem that many people immediately recognize—that fools are blind to their own foolishness. As Charles Darwin wrote in his book The Descent of Man, “Ignorance more frequently begets confidence than does knowledge.”

An Overview of the Dunning-Kruger Effect

This phenomenon is something you have likely experienced in real life, perhaps around the dinner table at a holiday family gathering. Throughout the course of the meal, a member of your extended family begins spouting off on a topic at length, boldly proclaiming that he is correct and that everyone else’s opinion is stupid, uninformed, and just plain wrong. It may be plainly evident to everyone in the room that this person has no idea what he is talking about, yet he prattles on, blithely oblivious to his own ignorance.

The effect is named after researchers David Dunning and Justin Kruger, the two social psychologists who first described it. In their original study on this psychological phenomenon, they performed a series of four investigations and found that people who scored in the lowest percentiles on tests of grammar, humor, and logic also tended to dramatically overestimate how well they had performed. Their actual test scores placed them in the 12th percentile, yet they estimated that their performance placed them in the 62nd percentile.

In one experiment, for example, Dunning and Kruger asked their 65 participants to rate how funny different jokes were. Some of the participants were exceptionally poor at determining what other people would find funny—yet these same subjects described themselves as excellent judges of humor.

Incompetent people, the researchers found, are not only poor performers, they are also unable to accurately assess and recognize the quality of their own work. These low performers were also unable to recognize the skill and competence levels of other people, which is part of the reason why they consistently view themselves as better, more capable, and more knowledgeable than others.

This is the reason why students who earn failing scores on exams sometimes feel that they deserved a much higher score. They overestimate their own knowledge and ability and are incapable of seeing the poorness of their performance.

“In many cases, incompetence does not leave people disoriented, perplexed, or cautious,” wrote David Dunning in an article for Pacific Standard. “Instead, the incompetent are often blessed with an inappropriate confidence, buoyed by something that feels to them like knowledge.”

This effect can have a profound impact on what people believe, the decisions they make, and the actions they take. In one study, Dunning and Ehrlinger found that women performed equally to men on a science quiz, and yet women underestimated their performance because they believed they had less scientific reasoning ability than men. The researchers also found that as a result of this belief, these women were more likely to refuse to enter a science competition.

Dunning and his colleagues have also performed experiments in which they ask respondents if they are familiar with a variety of terms related to subjects including politics, biology, physics, and geography. Along with genuine subject-relevant concepts, they interjected completely made up terms.

In one such study, approximately 90 percent of respondents claimed that they had at least some knowledge of the made up terms. Consistent with other findings related to the Dunning-Kruger effect, the more familiar participants claimed that they were with a topic, the more likely they were to also claim they were familiar with the meaningless terms. As Dunning has suggested, the very trouble with ignorance is that it can feel just like expertise.

Causes of the Dunning-Kruger Effect

So what explains this psychological effect? Are some people simply too dense, to be blunt, to know how dim-witted they are? Dunning and Kruger suggest that this phenomenon stems from what they refer to as a “dual burden.” People are not only incompetent; their incompetence robs them of the mental ability to realize just how inept they are.

Incompetent people tend to:

Overestimate their own skill levels

Fail to recognize the genuine skill and expertise of other people

Fail to recognize their own mistakes and lack of skill

Dunning has pointed out that the very knowledge and skills necessary to be good at a task are the exact same qualities that a person needs to recognize that they are not good at that task. So if a person lacks those abilities, they remain not only bad at that task, but ignorant to their own inability.

An Inability to Recognize Lack of Skill and Mistakes

Dunning suggests that deficits in skill and expertise create a two-pronged problem. First, these deficits cause people to perform poorly in the domain in which they are incompetent. Secondly, their erroneous and deficient knowledge makes them unable to recognize their mistakes.

A Lack of Metacognition

The Dunning-Kruger effect is also related to difficulties with metacognition, or the ability to step back and look at one’s own behavior and abilities from outside of oneself. People are often only able to evaluate themselves from their own limited and highly subjective point of view. From this limited perspective they seem highly skilled, knowledgeable, and superior to others. Because of this, people sometimes struggle to have a more realistic view of their own abilities.

A Little Knowledge Can Lead to Overconfidence

Another contributing factor is that sometimes a tiny bit of knowledge on a subject can lead people to mistakenly believe that they know all there is to know about it. As the old saying goes, a little bit of knowledge can be a dangerous thing. A person might have the slimmest bit of awareness about a subject, yet thanks to the Dunning-Kruger effect, believe that he or she is an expert.

Other factors that can contribute to the effect include our use of heuristics, or mental shortcuts that allow us to make decisions quickly, and our tendency to seek out patterns even where none exist. Our minds are primed to try to make sense of the disparate array of information we deal with on a daily basis. As we try to cut through the confusion and interpret our own abilities and performance within our individual worlds, it is perhaps not surprising that we sometimes fail so completely to accurately judge how well we do.

Who Is Affected by the Dunning-Kruger Effect?

So who is affected by the Dunning-Kruger effect? Unfortunately, we all are. This is because no matter how informed or experienced we are, everyone has areas in which they are uninformed and incompetent. You might be smart and skilled in many areas, but no one is an expert at everything.

One important point to make is that the Dunning-Kruger effect is not synonymous with low IQ. As awareness of the term has increased over the past few years, misapplication of the term as a synonym for stupid has also grown. It is, after all, easy to judge others and believe that such things simply do not apply to you.

The reality is that everyone is susceptible to this phenomenon, and in fact, most of us probably experience it with surprising regularity. People who are genuine experts in one area may mistakenly believe that their intelligence and knowledge carry over into other areas in which they are less familiar. A brilliant scientist, for example, might be a very poor writer. In order for the scientist to recognize their own lack of skill, they needs to possess a good working knowledge of things such as grammar and composition.

Because those are lacking, the scientist in this example also lacks the ability to recognize their own poor performance.

So if the incompetent tend to think they are experts, what to genuine experts think of their own abilities? Dunning and Kruger found that those at the high end of the competence spectrum did hold more realistic views of their own knowledge and capabilities. However, these experts actually tended to underestimate their own abilities relative to how others did.

Essentially, these top scoring individuals know that they are better than the average, but they are not convinced of just how superior their performance is compared to others. The problem in this case is not that experts don’t know how well-informed they are; it’s that they tend to believe that everyone else is knowledgeable as well.

Is There Any Way to Overcome the Dunning-Kruger Effect?

So is there anything that can minimize this phenomenon? Is there a point at which the incompetent actually recognize their own ineptitude? “We are all engines of misbelief,” Dunning has suggested. While we are all prone to experiencing the Dunning-Kruger effect, learning more about how the mind works and the mistakes we are all susceptible to might be one step toward correcting such patterns.

Dunning and Kruger suggest that as experience with a subject increases, confidence typically declines to more realistic levels. As people learn more about the topic of interest, they begin to recognize their own lack of knowledge and ability. Then as people gain more information and actually become experts on a topic, their confidence levels begin to improve once again.

So what can you do to gain a more realistic assessment of your own abilities in a particular area if you are not sure you can trust your own self-assessments?

Keep learning and practicing. Instead of assuming you know all there is to know about a subject, keep digging deeper. Once you gain greater knowledge of a topic, the more likely you are to recognize how much there is still to learn. This can combat the tendency to assume you’re an expert, even if you’re not.
Ask other people how you’re doing. Another effective strategy involves asking others for constructive criticism. While it can sometimes be difficult to hear, such feedback can provide valuable insights into how others perceive your abilities.
Question what you know. Even as you learn more and get feedback, it can be easy to only pay attention to things that confirm what you think you already know. This is an example of another type of psychological bias known as the confirmation bias. In order to minimize this tendency, keep challenging your beliefs and expectations. Seek out information that challenges your ideas.

A Word From Verywell

The Dunning-Kruger effect is one of many cognitive biases that can affect your behaviors and decisions, from the mundane to the life-changing. While it may be easier to recognize the phenomenon in others, it is important to remember that it is something that impacts everyone. By understanding the underlying causes that contribute to this psychological bias, you might be better able to spot these tendencies in yourself and find ways to overcome them.

By Kendra Cherry

Transport ministry claims 60% of HCM City residents support motorbike ban

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A Ministry of Transport survey claims that more than 60% of residents in HCM City support the plan to restrict cars and motorbikes in the city centre.

The figures were announced at a review meeting on improving public transportation and limiting personal vehicles project in HCM City held on March 1 by the city’s Vietnam Fatherland Front. The survey was conducted with 30,000 people in 24 districts by the Department of Transport and the Transport Development and Strategy Institute under the Ministry of Transport.

The result shows that 62.56% of the residents approved of the project. However, they also asked the authorities to quickly improve the public transport system.

Over 80% supported the idea to adjust school and office hours to avoid congestion. Nearly 70% supported the idea of a congestion charge for car drivers in the city centre and 85.5% wanted the authorities to apply an automated system to issue penalty notices and fines.

The Department of Transport in HCM City has proposed to ban motorbikes completely in the inner district during 2025-2030 period and faced with opposition from many experts.

At the meeting, Nguyen Van Hau, vice chairman of HCM City Lawyers Association, said that if the authorities wanted to ban motorbikes in just six more years, they would not have enough time to deal with many problems with the city’s infrastructure and public transport system.

“Will the public transport system can replace personal vehicles by then?” he said.

He went on to say that public bus service quality left a lot to be desired and citizens still didn’t have the habit of using public transport so it would be impossible to have 15-20% of the citizens use public transport by 2020, 20.5-26.6% in 2025 and up to 36.8% in 2030.

The metro line project is behind schedule and lacks funding while the city’s waterways are being developed unprofessionally. Moreover, the city can’t manage all the outdated vehicles used by co-operatives that exist in a large number in Vietnam.

Pham Xuan Mai from HCM City University of Science and Technology suggested merging the co-operatives. Instead of giving VND1trn in subsidy each year to keep bus fares low, the local authorities should use the money to buy new electric buses, he said.

“Better buses will attract more passengers. Electric buses are also less costly,” Mai said.

Source: Dtinews

DPRK Chairman Kim Jong-un leaves Hà Nội

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Chairman of the Workers’ Party and the State Affairs Commission of the Democratic People’s Republic of Korea (DPRK) Kim Jong Un left Hà Nội on March 2 morning, concluding his official friendship visit to Việt Nam and his stay to attend the DPRK-USA Hanoi Summit Việt Nam.

Earlier on the same day, Chairman Kim paid tribute to late Vietnamese President Hồ Chí Minh at his mausoleum and laid a wreath at the Monument to Heroic Martyrs.

He is scheduled to leave Việt Nam on train at Đồng Đăng station in the northern mountainous province of Lạng Sơn to return home.

Kim held the second summit with US President Donald Trump on February 27-28, during which a number of issues were discussed, but no deal was reached.

Tthe Korean Central News Agency (KCNA) reported on March 2 that Chairman of the Workers’ Party and the State Affairs Commission of the Democratic People’s Republic of Korea (DPRK) Kim Jong Un voiced his hope to intensify cooperation with Việt Nam in all fields and lift bilateral relations to a new height.

KCNA run an article about Kim’s official visit to Việt Namfrom March 1-2 right after his second summit with US President Donald Trump in Hà Nội.

The agency cited Kim as saying that through productive meetings between the two Parties and States, the DPRK and Việt Nam should normalise bilateral collaboration and exchanges in all aspects, from economy, science and technology, defence, sports, culture and arts, to advertisement and communications, and at the same time upgrade the relationship to a new height.

On March 1, the DPRK leader held talks with General Secretary of the Communist Party of Việt Nam Central Committee and President Nguyễn Phú Trọng at the Presidential Palace in the Vietnamese capital city. He also had meetings with Prime Minister Nguyễn Xuân Phúc and National Assembly Chairwoman Nguyễn Thị Kim Ngân.

Kim is the first DPRK leader who has paid an official visit to Việt Nam after 55 years. Earlier, the founder of the DPRK Kim Il Sung visited Việt Nam in 1958 and 1964.

Source: VNS

Foreign property buyers flock to high-end market

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Attractive profits are finally bringing overseas buyers and investors back to the luxury apartment ­segment after a period of ­relative inactivity.

As the upper class continues to grow and consolidate demand for high-end and luxury housing products, the market still has room for growth. The number of the so-called super-rich in Vietnam, and their general rise across Asia, has continued to grow over the past five years and shows no signs of slowing down.

A relevant factor in this is the revised Law on Housing issued in 2014 allowing foreigners to own houses in Vietnam, which has created a demand for high-end real estate from neighbouring countries.

When the policy came into effect in 2015, the percentage of foreign owners in many high-end projects reached its highest limit, featuring mainly buyers from Taiwan, Hong Kong, and South Korea.

In the past few years, the luxury housing segment in Vietnam has attracted more and more foreign investors because of attractive profit margins. In the context that profits continue to rise with high price hikes and positive rental rates, the number of international investors and operators entering the luxury market will climb in both Hanoi and Ho Chi Minh City.

These funders carry large investment flows and introduce more new high-end real estate models to the Vietnamese housing market. For example, for the first time, the branded residential area was introduced into the country. This relaxing real estate model, showcasing a new lifestyle classified as high-class, was recently brought to Vietnam by international hotel groups.

More buyer involvement

The combination of famous hotel brands and top design standards helps the quality of real estate products get recognised at a high level equivalent to the brand, providing a competitive advantage compared to non-branded high-end housing projects.

Richard Leech, senior general manager of Commercial, Asset, and Property Service Management at Alpha King Real Estate Development JSC, said that central business districts (CBD) in Ho Chi Minh City are most attracted by wealthy and foreign buyers. “That is why Alpha King is focusing business on high-end luxury accommodation with artworks, amenities, a prime location, and value-added services. We want to offer something extra special, something that is very different to others,” Leech said.

According to Neil MacGregor, managing director of Savills Vietnam, purchases by non-Vietnamese in 2018 reached unprecedented levels, with the vast majority of high-end projects hitting their 30 per cent foreign quota at launch.

Ho Chi Minh City saw some prime District 1 projects launched for the first time, with talk of restrictions on any further residential projects in the city centre going forward.

“The much-touted oversupply that had been foreseen by many in 2017 failed to materialise as many projects were delayed, leading to feverish sales activity at the launch of those developments that did make it to market,” MacGregor said.

He added that the momentum of Vietnam’s residential market continued to be driven by golden demographics, the positive economic outlook, and the completion of new infrastructure projects.

Ho Chi Minh City and Hanoi are undergoing rapid transformation, continuing to catch up to regional peers. Meanwhile, Ho Chi Minh City’s apartment market is underwritten by strong occupier demand, whilst the high-end segment in both cities is appealing to both local high-net-worth individuals and international purchasers.

“High levels of capital inflows, increasing numbers of foreign developers, and suitable policies will continue this pattern of growth. The fundamentals have supported strong price increases over much of the last decade, despite a slow period from 2010 to 2014,” said MacGregor. “With a steady increase in average incomes and good financing packages available to domestic buyers, the market has witnessed much positive change. Moreover, high urbanisation rates and infrastructure development have provided depth to the market and opened up new areas of the key cities for higher-end development.”

Hikes still lower than rivals

According to Savills ­Vietnam, apartment prices in Ho Chi Minh City and Hanoi are generally still lower than ­regional peers such as Kuala Lumpur and Bangkok, despite much stronger growth rates in Ho Chi Minh City ­compared with these markets.

“The average price across the broader market is expected to continue to increase, albeit at a somewhat slower pace, with price increases linked to higher development standards and continued strong residential ­demand driven by urbanisation, the rapid growth of the middle class, as well as new ­infrastructure,” MacGregor added.

New house prices in Ho Chi Minh City’s CBD now average around $5,500-6,500 per square metre, a fraction of the eye-watering levels seen in Hong Kong where prices are at an all-time high.

With many countries also introducing cooling measures, resulting in higher taxation, the relatively low taxation in Vietnam appears increasingly attractive to buyers both at home and abroad.

MacGregor said, “It is not surprising that demand for ­investment properties in ­Vietnam has increased significantly since 2015, when the new housing law opened the market to international investors. With the distinct shortage of prime property in Vietnam’s key cities, many buyers can see the potential for significant capital gains over the longer term. In the meantime, rental yields in excess of 5 per cent represent an attractive investment versus falling returns elsewhere in the region.”

“Although there is still a long way to go for the Vietnamese property market to reach the dizzying heights of Hong Kong and Singapore, Vietnam is well on its way to becoming Asia’s next tiger, with strong economic growth, a rapidly growing middle class, and, for the time being at least, relatively affordable pricing,” he added.

Meanwhile, figures from CBRE Vietnam also revealed 2018 to be somewhat of a comeback for the luxury apartment segment, with a range of projects coming to fruition such as Cove Residences, The Vertex Private Residences, Alpha Hill, Grand Manhattan, and Metropole Thu Thiem.

High absorption of 90 to 100 per cent has been reported in projects which are located in strong locations, such as the Empire City, Midtown, and Metropole in Ho Chi Minh City. Luxury projects are now offered at $8,000 per sq.m or more, with prices expected to increase an additional 5 per cent this year.

Technology outbreaks

The Fourth Industrial Revolution is set to bring new technologies and impact people’s working, shopping, and socialising habits. For high-end properties, high prices and more advanced technologies have been integrated into housing products, from design to promotion to operation and management.

According to Olivier Do Ngoc, CEO of EZLand Vietnam Development JSC, Industry 4.0 is an inevitable trend that will affect the Vietnamese real estate industry both directly and indirectly.

“A number of developers have already started installing smartphone applications for their office buildings or residential projects to improve the customer experience or to facilitate information sharing,” Ngoc told VIR.

Vietnam has been very active in approaching Industry 4.0 by planning to build green smart cities that will impact the way people live, work, and consume in the future, and that may have a fundamental impact on various aspects of the real estate market.

“At the corporate level, technology will become an even more quintessential part of an organisation, and companies will have to be rebuilt based on leveraging Big Data and other key knowledge gained from the development of Artificial Intelligence, information networks, and customer services,” Ngoc said.

Today, the real estate market in Vietnam is still limited in the amount of consolidated data available online, but there is an emerging trend of databases listing market data including new projects, units for sale and rent, actual transaction prices, and other information helping to create transparency and also assisting both customers and developers in making informed real estate decisions.

Sourcce: VIR

FLC Group proposes Tan Son Nhat Airport terminal investment

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FLC Group, the investor in newly-operated Bamboo Airways, has proposed investing in Terminal 3 at Tan Son Nhat International Airport.

The information was given by Deputy Minister of Transport Nguyen Ngoc Dong at the cabinet meeting on Friday.

The recommendation was sent to the Ministry of Transport, but more details have not yet been specified by the group, Dong added.

The Airports Corporation of Vietnam (ACV) previously sent the same proposal to the ministry. The new terminal would cost more than VND11.43 trillion (USD488 million) and ACV proposed to entirely cover the investment.

ACV has also mentioned details of the project. The firm plans to kick off the project in the third quarter of 2020 and complete it in the second quarter of 2022.

ACV said that once operational, the terminal can serve 20 million passengers annually.

According to Dong, in cases where more than one investor was interested, the ministry would hold a tendering process.

According to a report on NLD

Hong Kong tops foreign investors in Vietnam

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Hong Kong (China) topped the list of 66 countries and territories investing in Vietnam in January-February with a total investment of 4.3 billion USD, making up 51 percent of the new FDI inflow into the country.

It was followed by Singapore with 979 million USD and the Republic of Korea with 873 million USD. VNA reports.

Hong Kong secured the position after many years thanks to a 3.85 billion USD beer production project in Hanoi and another project worth 260 million USD producing electronic and internet equipment and multimedia audio products.

According to VNA, as of February 20, foreign investors have poured 8.47 billion USD into Vietnam, 2.5 times higher than the same period last year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.

This number included newly registered capital, capital contributed and shares purchased by foreign investors.

The country granted 514 new investment licences to projects with a total registered capital of 2.44 billion USD, up 75.7 percent over the same period of 2018.

As many as 176 projects registered to adjust their capital with a combined additional capital of 854.8 million USD, up 22.1 percent year on year.

Meanwhile, the value of capital contribution and share purchases by foreign investors reached 5.17 billion USD, four times higher than the same period in 2018 and accounting for 61 percent of total registered capital.

Foreign direct investment (FDI) projects were estimated to have disbursed 2.58 billion USD in the first two months of this year, up 9.8 percent. This is the highest level of two-month growth in the last three years.

Foreign investors pumped their money into 18 sectors, of which the manufacturing and processing industry remained the hottest with a total pledged capital reaching 6.93 billion USD, equivalent to 81.8 percent of the total registered value.

The real estate and science and technology sectors were ranked second and third with respective values of 478 million USD and 306.7 million USD.

Hanoi was the most attractive among 44 provinces and cities receiving FDI with 4 billion USD, or 47.3 percent of the total. Ho Chi Minh City came second with more than 1 billion USD, followed by Bac Ninh province with 541.7 million USD.

The foreign investment sector remained the major exporter with a total export value of all goods (including crude oil) reaching 25.95 billion USD, up 3.7 percent year on year and making up 70.7 percent of Vietnam’s total export turnover.

Its import value also increased 5.1 percent during the reviewed period to 21.47 billion USD.

To sum up, the FDI sector recorded a trade surplus of 4.48 billion USD.

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Will Vietnam develop 5G with Huawei’s equipment?

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Analysts say that Huawei’s equipment will be the least expensive, but believe that in the long term Vietnam needs to produce its own equipment.

While the world is looking at Huawei skeptically, the Chinese technology group is still confident that it will be able to expand in Vietnam and win the bid to provide 5G equipment to the country.

Fine Fan, CEO of Huawei Technologies Vietnam, said in Nikkei Asian Review that the group is confident of expanding in Vietnam.

He also said that Huawei is ready to conduct negotiations with potential partners in Vietnam about the trial use of 5G in Vietnam this year.

Huawei has been facing obstacles implementing its expansion plan as western countries have prohibited or reconsidered the possibility of allowing Huawei to provide equipment to 5G projects in their countries.

The Los Angeles Times on February 13 reported that the White House is drafting a decree on prohibiting Chinese firms from selling equipment to US telecom networks for fear of spy and cyberattack risks.

It did not specify the names of Chinese companies, but Huawei was assumed to be the company that the decree is targeting.

However, Huawei is still earning big money in Southeast Asia. Foreign media reported that leading Filipino telco Globe Telecom has chosen Huawei as the major equipment supplier for its 5G project.

Vietnam’s mobile network operators plan to officially launch 5G services by 2021. This is the right time for telecom equipment manufacturers, including Huawei, to approach telcos and conduct negotiations.

Many experts have protested against the use of Chinese equipment, saying that the equipment is a big threat to Vietnam’s security.

On technology forums, members have called on to ‘boycott’ Chinese products. The 40th anniversary of the Vietnam-China 1979 border war, a political event, stands as a highlight on technology forums.

However, it is not easy to replace all Huawei’s equipment with Nokia’s, Ericsson’s or Samsung’s. And it is clear that Huawei is a potential candidate.

However, experts said that in the long term, Vietnam should not rely on import equipment, but produce its own equipment, for security reasons.

Hieu Minh, a technology expert, in an article on Thoi Bao Kinh Te Sai Gon, recalled an event that happened more than 40 years ago. At that moment, the Institute of Computational Science and Control cherished the dream of made-in-Vietnam personal computers.

However, the plan was canceled because of the view that it would be better and cheaper to import computers for domestic use. The problem, however, was not only economic efficiency and profits, but also national security.

According to a report on Vietnamnet

Vietnam ranked 16th among the leading trade partners of the US

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Two-way trade turnover between Vietnam and the US has increased nearly 120 times, reaching over 60 billion USD in 2018 from 450 million USD in 1994, since the normalisation of bilateral relations 25 years ago.

At present, Vietnam is ranked 16th among the leading trade partners of the US and the annual bilateral trade growth reaches 20 percent.

Statistics showed that Vietnam’s exports to the US in January 2019 were estimated at over 5.1 billion USD, up 42.1 percent compared the same period last year.

Garment-textile exports to the US increased 34.1 percent to hit over 1.59 billion USD. Other Vietnamese staples include footwear with the export turnover of 620 million USD, up by over 100 million USD; wood and timber products at 475 million USD, up by 156 million USD; and mobile phones at 473 million USD, up 259 million USD.

According to the department in charge of Asian and American markets under the Ministry of Industry and Trade, the US made up 23.3 percent of Vietnam’s total export turnover in January, maintaining its position as a key trade market.

Additionally, a range of Vietnamese goods have been growing in popularity in the US. Vietnam has been able to export mangoes to the US after a decade of negotiations and the completion of all procedures required by one of the most choosy markets in the world.

In January, the country imported over 1 billion USD worth of goods from the US, resulting in Vietnam’s trade surplus of over 4 billion USD to the market.

Minister Counsellor Bui Huy Son, head of the Vietnam Trade Office in the US, stated that his office recently worked with one of the biggest Asian food distribution chains in the US, the Rhee Brothers, to expand Vietnamese food distribution in the market.

Through traditional exchange channels and electronic trading tools, the office has connected the two countries’ businesses in numerous fields such as garment-textiles, seafood, rice, coconut products, timber products, mechanical goods, manufacturing, chemicals, cosmetics, electric cables, electronic equipment, and semiconductors.

With the largest total import value of over 2.4 trillion USD in 2018, the US will continue to be a key export market of Vietnam in the coming years, Son said, adding that this is also a fiercely competitive one.

According to experts, the trade relations between Vietnam and the US in 2019 will see important changes because the US looks likely to recognise the market economy of Vietnam after July 1, 2019. Therefore, the bilateral ties will be laid on the important legal foundation of international commitments.

To promote exports to the US, Son suggested that government agencies and the business community continue to create a favourable environment, while also improving goods quality, building brands, making good use of distribution systems, and effectively implementing trade promotion activities.

Minister of Industry and Trade Tran Tuan Anh said that besides programmes and orientations on increasing the support for building national competitiveness, the ministry will carry out big projects to increase the competitiveness of export products, especially of the industry and processing industry sectors.

Businesses themselves should proactively develop markets and increase domestic production capacity, as well as look to get deeper involved in the global supply chains.
They are recommended to build and implement effective business strategies to make inroads into the US, noted the minister.

- VNA

Amazon selects 100 Vietnamese firms to join its network

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Amazon Global Selling and The Vietnam Trade Promotion Agency (Vietrade) will select 100 Vietnamese businesses to sell their products on the retail giant’s online network.

Vietrade and Amazon experts will guide the firms how to complete export-import and customs procedures, build online shops on Amazon.com, study the US market and develop their products and brands.

The businesses will also receive training on e-commerce and selling skills on Amazon.

According to the General Statistics Office (GSO), 98.1 percent of Vietnam’s businesses are small and medium-sized enterprises (SMEs). Meanwhile, the World Bank reported that 60 percent of SMEs in 2018 could not access loans from official sources. They still cannot make appropriate investments to upgrade the quality of products for both domestic consumption and exports.

Before Amazon, Walmart carried out a campaign to seek Vietnamese suppliers. Vinamit’s fruit chips are available at Walmart China, while Trung Nguyen coffee is sold at Walmarts in Chile, Brazil, Mexico and China.

Vietnam’s e-commerce value climbed to about 4 billion USD in 2015 and hit 5.1 billion USD in 2016 and 6.2 billion USD in 2017, becoming one of the fastest-growing markets in the world.

Revenue from online retail in the country is forecast to hit 10 billion USD by 2020, accounting for 5 percent of the country’s retail market.

-VNA

Lotte Vietnam Finance to join Vietnam Banking Association

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Lotte Vietnam Finance Company Limited (Lotte Finance) has become the first Korean financial institution to become an official member of the Vietnam Banking Association (VBA).

The admittance, which comes just five months after it started operations in Vietnam, shows the Korean firm’s commitment to long-term development in Vietnam’s finance industry.

“Becoming a member of the VBA places the foundation for co-operative relations for mutual development between Lotte Finance and other financial companies, banks and businesses,” said Kim Jong Geuk, general director of Lotte Finance.

Lotte Finance’s general director Kim Jong Geuk (left) receives the decision of being admitted to the Vietnam Banking Association. — Photo courtesy of the company

Kim highly appreciated the VBA’s professional ethics and code of conduct and expressed support and willingness to comply with the code besides the company’s international code of conduct.

He said Lotte Finance would actively participate in VBA activities, share and exchange experiences and technical expertise among members, contributing to the development of the VBA.

VBA’s secretary general Nguyễn Toàn Thắng praised the growing economic co-operation between Vietnam and Korea, particularly in the finance industry. He said by being a member of the VBA, Lotte Finance would be protected by the association’s legitimate rights and interests in accordance with the law.

Lotte Finance entered Vietnam’s market in September 2018 with 100 per cent capital from Lotte Card – a credit company with the largest service network in the Republic of Korea and the first Korean credit card company licensed to operate in Vietnam.

It launched its first consumer loan service in December and plans to issue credit card products in the first quarter of this year.

— VNS

Big potential for Vietnam-US business cooperation

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On the sidelines of the DPRK-USA Hanoi Summit on Wednesday, three Vietnam airlines, Bamboo Airways and Vietjet Air signed deals with US firms worth more than US$21 billion, but will this spell the start of an increase of bilateral agreements between America and Vietnam.

What the investors think about the future of bilateral relations between Vietnam and the US?

Here is the answers from Adam Sitkoff, Managing Director of the American Chamber of Commerce (AmCham) in Hanoi, Vietnam.

This year, AmCham celebrates 25 years of working in partnership with our many friends in the Government to help improve business conditions that strengthen the private sector and promote economic and social development here. AmCham members have had a transformative role in the development of Vietnam. From managerial practices and technologies to service standards and business ethics, the US business community here has affected Vietnam in many positive ways. Today, the US and Vietnam are partners – something once thought unimaginable – and American companies and investors are now active in almost every sector of Vietnam’s economy, helping to integrate the country into the global supply chain, creating quality jobs and making the country more productive, safe and clean.

Earlier this week, President Trump and President Trọng witnessed the signing of commercial agreements worth over US$20 billion, with several of the airlines in Vietnam agreeing to buy Boeing jets and technology from the US. President Trump praised the Vietnamese for substantially reducing the trade deficit and complimented the country, tweeting: “Vietnam is thriving like few places on earth.” I believe these business deals reflect the growing economic ties and strengthening partnership between Vietnam and the US.

Today, I see tremendous opportunities in Vietnam – for both the domestic and foreign business sectors. Ongoing US-China trade tensions have highlighted the risk of concentrating production bases in a single country and are triggering supply chain re-organization. Companies are shifting some production out of China and Vietnam is gaining some of that business. The question is how Vietnam can fully capitalize on this opportunity in order to continue its rapid upward economic trajectory.

I believe that the business climate can best be helped by actions that increase productivity and reduce the costs and risks of doing business in Vietnam. Whether looking at financial services, healthcare, consumer goods, hospitality or other industries, it is critical that Vietnam maintains a conducive environment that allows competition between and among local and foreign players to promote innovation and more cost-effective solutions and products.

AmCham will continue to work on lowering barriers to trade to help the Vietnamese Government make it easier to do business and to create a high-standard, transparent and stable business environment here.

” To be advised about how to start your business in Vietnam as a foreign investor, you may contact GBS, a business & legal services firm in Vietnam at: info@gbs.com.vn or visit the website: https://gbs.com.vn

- VNS
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