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Vietnam to focus on 5 key scientific projects

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Deputy Prime Minister Vu Duc Dam yesterday had a meeting with more than 70 scientists who are taking part in the 5 major scientific projects in Vietnam.

Deputy Prime Minister Vu Duc Dam yesterday had a meeting with more than 70 scientists who are taking part in the 5 key scientific projects in Vietnam.

The first project is ‘Researching and Preparing the National History Book Collection’, including 25 volumes of the Vietnamese History, 5 volumes of the Vietnamese Chronicle, and the Database of the Vietnamese History.

The second one is ‘Preparing 37 Volumes of the Vietnamese Encyclopedia’, consisting of both the hard copy and online version.

The third is ‘the Regional Geography of Vietnam’ to describe all 63 provinces and cities in the nation, along with their specific aspects.

The fourth project is ‘Digitizing the Vietnamese Knowledge’ to connect various research results in order to improve research performance and provide necessary tools for other scientific projects while popularizing foundation knowledge to the general public.

The last one is ‘Translating and Promoting Precious Eastern Values via Classical Literature Works’, chaired by the Vietnam National University – Hanoi, to translate and explain in detail classical pieces on religion, philosophy, and politics.

According to the Deputy Prime Minister, the 5 projects are truly meaningful to the current and future Vietnamese generations. They totally support the governmental policies on developing science and education, culture and economics.

The projects have been carried out thanks to our rich historical heritage, our achievements of the 30-year renovation process, and our science-technology potential is gradually growing, the Deputy PM said

These projects have been attracting the concern and participation of many scientists in various fields, he added.

According to a report on SGGP

e-Payments in Vietnam are slowly taking off

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2018 proved to be a fantastic year for the Vietnamese economy. Figures from the government showed that the socialist state’s gross domestic product (GDP) grew by 7.1 percent year on year in the first six months of 2018 – the fastest growth recorded since 2011. Vietnam’s impressive growth rate is expected to continue this year.

As the Vietnamese economy continues to grow, consumption choices in the country have begun to change. A growing middle class and increased access to the internet has led to a flourishing digital economy. 54 percent of Vietnam’s population is on the internet and this number is expected to grow in the coming years.

Among the major aspects of a digital economy is cashless online transactions or better known as e-payments. In societies that have a high internet penetration and a growing digital economy, the reliance on cash as a mode of payment is less. Instead, e-payments are usually the preferred choice as they are faster and usually more convenient. Eijas Ariffin reported on theaseanpost.com

In Vietnam, e-payments are slowly taking off. According to Statista, in 2017, the number of e-payments in the country grew by 22 percent from the previous year and was valued at US$6.1 billion. This figure is forecasted to grow to US$12.3 billion by 2022.

Despite these impressive figures, the number of e-payments in Vietnam is miniscule compared to that of its neighbors. The World Bank revealed that Vietnam currently has the lowest number of non-cash transactions in the region at only 4.9 percent. The figure is much higher in Thailand at almost 60 percent, while in Malaysia it is close to 90 percent.

Currently, there are a few big players when it comes to e-payments in Vietnam. Aside from the obvious international ones such as GrabPay and AliPay, local fintech firms are giving them a run for their money.

One of the pioneering Vietnamese start-ups in the e-payment space is Momo. The company helps customers in Vietnam make nationwide cash transfers, pay more than 100 types of bills, recharge mobile phone accounts, settle personal loans, and many more. The company’s payment system is also in partnership with 24 domestic banks and foreign payment networks, including JCB, MasterCard, and Visa. Their rivals include ZaloPay, Vi Viet, and Bankplus and a host of others.

Noticing that Vietnam is lagging behind its neighbors in the e-payment sector and the importance of e-payments in strengthening the digital economy, the government there has taken some swift measures to fix this. Last month, it (the government) announced a resolution that would intensify support for the expansion of cashless transactions.

Local media reported that the resolution instructs the chairs of provincial and municipal People’s Committees to direct all schools, hospitals and suppliers of electricity, water, sanitation, telecommunications and postal companies in urban areas to coordinate with banks and intermediary payment service providers to collect fees and payments for their services using cashless transactions by December 2019.

The State Bank of Vietnam has also been tasked to come up with solutions and methods to encourage the use of e-wallets.

Aside from that, Vietnam has also long offered institutional support for fintech start-ups in the country. In 2016, the government established the National Agency for Technology, Entrepreneurship and Commercialisation Development (NATEC). NATEC is a platform under the Ministry of Science and Technology which aims to provide training, mentorship, business incubation and acceleration and financial aid to new start-ups.

However, focusing on start-ups and urban centres may not be sufficient. The government should also focus on improving access to e-wallets and other fintech services for people living in the more rural parts of Vietnam.

60 percent of the rural population in Vietnam is unbanked and face difficulties in accessing financial services. Giving the rural population access to mobile financial services will not only increase cashless transactions but allow them to gain access to micro-financing and loans as tools to empower them.

A move towards a cashless society should not be seen just as a convenience for consumers. It also represents a step towards becoming a more efficient and empowered society.

Samsung will bundle the Galaxy Buds with Galaxy S10 pre-orders in Vietnam

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Samsung Vietnam confirms free Galaxy Buds with Galaxy S10 pre-order. Actually, it’s a rich bundle that also includes a JBL Charge 3 (worth $150) and a Clear View Case for the phone, that’s a total of VND 7,000,000 ($300) worth of goodies.

Interestingly, the local Samsung Experience Store offers this promotion from February 11 to February 26 – it’s already ongoing! Samsung is already running a pre-order promo in the Philippines too, though the gift package is a “mystery box”, which may or may not contain a pair of Buds. We do know that Samsung Russia will be bundling the Buds with pre-ordered S10 phones, gsmarena.com reports.

Pre-ordering a Galaxy S10 in Vietnam nets you Galaxy Buds, a JBL Charge 3 and a Clear View case @Local media

The Vietnamese promo is worth $300, which sounds like a lot, but the Philippines one is $590. The US promo seems tame by comparison. If you reserve a Galaxy S10 today – which you can do here – you get $50 credit for accessories and a delivery on March 8 (while supplies last). You can save up to $550, but that requires a trade-in.

Details on the Galaxy Buds surfaced yesterday, which showed more internal storage (8GB), Bluetooth 5.0 and smaller batteries than the Gear IconX (2018) (in both the buds themselves and their case). The Buds will be unveiled and will go on sale at the same time as the Galaxy S10, their standalone price is still unknown.

Things you need to know about Nominee Shareholder services in Vietnam

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Also referred to as nominee stockholder or ostensible stock holder, they are a Registered stock holder of a company’s shares on behalf of the legitimate owner under a custodial agreement.

The Law on Enterprises of Vietnam requires all companies to have at least one shareholder who is either an individual or a corporation. It is not necessary for the shareholder to be a Vietnam resident as 100% foreign shareholding of a company is allowed in the republic.

When incorporating your company or acquiring another company in Vietnam, you can become the shareholder of the company. Alternatively, GBS, a business and legal services company in Vietnam can provide you with a Nominee Shareholder which in turn, will help you secure your corporate privacy.

Why take up a Nominee Shareholder Service?

It is not uncommon for clients to engage the Nominee Shareholder Service for the purpose of confidentiality. GBS’s service entails the Nominee Shareholders holding the shares on trust for the beneficial owners. Only the Nominee Shareholder’s name will be identified on the Register of Shareholders.

3 things you need to know about the Nominee Shareholder Agreement

The Nominee Shareholder Service provides each client with a signed declaration of trust in which the appointed Nominee Shareholder holds shares on behalf of the beneficial owner.
The Nominee Shareholder is not the legal owner of the shares and the shares shall be returned to the beneficial owner when the service is terminated or transferred to another party as per beneficial owner’s request.
All income and capital gains on the shares held belong to the beneficial owner.

The Nominee Shareholder Service guarantees complete confidentiality. Your identity as Beneficial Owner is only known to the services provider and not placed on public record at the Company’s Registry.

Any support you may need, contact GBS:

Email: info@gbs.com.vn (Ms. Sophie)
iMessage | SMS | Whatsapp | Viber | Call: +84903189033
Website: https://gbs.com.vn

Grab-Uber deal to be probed again

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Việt Nam’s authorities plan to conduct further investigations into the merger of Grab and Uber last year over possible antitrust regulations violations, said the Ministry of Industry and Trade on Wednesday.

The Competition Council announced that after examining documents and working sessions with relevant parties, it had discovered a number of new details related to possible violations of competition law in Grab’s acquisition of fellow ride-hailing platform Uber last March.

These discoveries prompted the council to return the case dossiers to the Ministry’s Competition and Consumer Protection Department for further investigation. The investigation is expected to run until April this year.

Last year, Grab announced its acquisition of Uber’s operations in Southeast Asia, including Việt Nam.

In Việt Nam, the investigation into Grab and Uber’s merger was initiated in May 2018.

The Competition Council in December 2018 announced Grab’s acquisition of Uber had signs of violations in terms of failure to notify market regulators of its purchase of Uber. The deal was also thought to have threatened Vietnamese taxi companies by cutting their market shares and changing customer habits.

Notably, competition authorities have said the combined market share between Grab and Uber in Việt Nam exceeded 50 per cent, which breaches regulations under the country’s Law on Competition 2004.

According to the ministry, if the concentrated market share of parties accounts for 30 to 50 per cent in the market without announcement before their acquisition, the firms will be fined 10 per cent of their total revenue in the previous financial year. If the figure exceeds 50 per cent, the transaction will be prohibited from being completed.

However, Grab claimed that it had acted legally and that the competition authorities have misinterpreted the scope of relevant markets when calculating the market share.

Việt Nam is not the only country where Grab has come under fire in Southeast Asia. Singapore in September last year announced a fine of US$9.5 million on Grab and Uber for eroding competition.

Source: VNN

In Vietnam, guards drag woman out of railway seconds before train comes

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An elderly woman was narrowly saved from being run over by a train after she tried to run across a level crossing only to trip right on the railway in southern Vietnam on Tuesday.

The incident occurred at a railway intersection in Bien Hoa, the capital of Dong Nai Province, at around 8:15 am.

CCTV footage acquired by Tuoi Tre (Youth) newspaper shows barriers had been lowered to prevent traffic from crossing the track minutes before the speeding train, on its way from Ho Chi Minh City to Hanoi, arrived.

Two female railway guards, Do Thi Lan and Nguyen Thi Minh, were stationed at the level crossing to operate the barriers and make sure the track was safe for trains to cross.

An elderly woman could be seen sneaking past one of the barriers and suddenly ran across the track when the train was only 30-40 meters away from the intersection.

“When she was in the middle of the intersection, she panicked seeing how close the train was and tripped, falling onto the track,” Lan said.

Both guards jumped to her rescue, dragging the woman away from danger just seconds before the train crossed the intersection at high speed.

“I wasn’t thinking much about what I did, it was just my instinct kicking in,” Lan told Tuoi Tre later the same day, after news of the miraculous save broke in local media.

As the spine-chilling video went viral online, some viewers criticized the two female guards for not preventing the woman from trespassing on the railway in the first place.

“You’ve got to walk in our shoes to understand that not everyone listens to guards’ orders,” Lan said.

Trespassers are what railway guards like Lan and Minh have to deal with on a daily basis.”

The elderly woman involved in the incident has been identified as Phan Thi Cam, 77, a resident living near the rail track.

She suffered from minor head injuries from the fall, but has recovered as of Wednesday.

“Cam said she did not hear our warnings due to her old age, so she just crossed the track as usual,” Minh said.

“She said her actual age is over 80, despite what’s written on the dotted line.”

Cam has expressed her gratitude to the two courageous guards for risking their lives to save hers.

Doan Duy Hoach, deputy general director of Vietnam Railways Corporation (VRC), said the corporation would formally commend the guards for their heroic jump to action, but said it could have ended badly if not well-calculated.

There are more than 1,500 railway level crossings in Vietnam, among which around 600 are manned, according to VRC.

Source: Tuoitrenews

Vietjet Air plane faces tyre puncture after landing in HCM City

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A Vietjet Air plane tyre suddenly blew out after it had been landed at Tan Son Nhat International Airport in HCM City.
According to the Civil Aviation Administration of Vietnam (CAAV), the incident occurred on Tuesday on the flight which travelled form Phu Quoc to HCM City.

The rear tyre which was punctured has been found to be severely worn due to being strongly impacted by force.

Head of CAAV Dinh Viet Thang said that the accident happened after the flight landed, so all passengers were safe.

The tyre problem was detected following a technical check at Tan Son Nhat International Airport.

According to a VietJet representative, the new tyre was quickly replaced to ensure the next flight schedule.

Source: Dtinews

Edible bouquets widely on sale for Valentine’s Day in Ho Chi Minh City

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Gone are the days when Valentine’s flowers were just to be admired. Florists and gift shops in Ho Chi Minh City are offering consumers more choices of unique gifts for their beloved ones, including bouquets of ‘edible flowers.’

As Valentine’s Day is only one day away, demand for presents has never been higher.

Created specifically for Valentine’s Day, the edible bouquets can be made of strawberries, cherries, chocolate flowers, or chocolate-covered wafer bar confections, and are priced from VND299,000 (US$13) to VND2.5 million ($108).

“Customers constantly place orders during these days of high demand,” said Kim Dung, manager of a flower shop in District 7, Ho Chi Minh City.

According to Dung, more men have visited flower shops than women these days.

Imported roses with large blooms are among the best-sellers at flower shops, despite their hefty price tags of between VND120,000 ($5) and VND180,000 ($8) per flower.

Fresh flowers placed in transparent boxes and eternal flowers are also favored by customers.

There are other interesting gifts such as teddy bears made of roses, roses made of gold, gilded statues of a pair of cranes, and gilded brooches.

“Customers buying gifts on Valentine’s Day have increased by 300 percent [against normal days],” said Phan An, manager at a shop selling gold-plated souvenirs.

Source: Tuoitrenews

North Korea may choose to follow Vietnam’s economic model

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As Hanoi prepares to host the second U.S.-North Korea summit later this month, experts say North Korea may be gearing up to study Vietnam’s model of economic development.
Vietnam’s Foreign Minister Pham Binh Minh went to Pyongyang on Tuesday following North Korean Foreign Minister Ri Yong Ho’s visit to Hanoi last year.
Vietnam’s ability to retain one-party rule, strict censorship, minimal dissent and a top-down system of control after integrating into the global economy is seen as an attractive prospect for the North.

According to a report by Nyshka Chandran on CNBC, as North Korea signals a willingness to open up its highly centralized, socialist economy, Vietnam’s model of development is being widely suggested as a blueprint for Pyongyang to emulate.

Hanoi’s ability to retain one-party rule, strict censorship, minimal dissent and a top-down system of control after integrating into the global economy is an attractive prospect for North Korea, according to analysts. If Pyongyang were to ever transition into a market economy, it will likely continue to prioritize regime stability — loosening restrictions on areas such as currency and migration could be politically destabilizing for Kim Jong Un’s rule.

To gauge lessons for its own future, North Korea has long studied communist governments such as China and Vietnam, countries with state-managed growth that have integrated into the world economy. As Hanoi prepares to host the second U.S.-North Korea summit in late February, experts believe Kim may be more inclined toward Vietnamese-style liberalization.

Vietnam’s Foreign Minister Pham Binh Minh traveled to Pyongyang on Tuesday following North Korean Foreign Minister Ri Yong Ho’s visit to Hanoi last year. That trip was reportedly aimed at studying Vietnam’s reforms, according to Yonhap News Agency. Such visits hark back to earlier years such as 2012, when a North Korean delegation visited the Vietnamese province of Thai Binh to examine rural development.

Just last month, Vietnam’s parliamentary chairwoman Nguyen Thi Kim Ngan said her country was “willing to share an economic solution and know-how with North Korea,” reported South Korean newspaper Maeil Business at the time. Washington is in favor of the idea — U.S. Secretary of State Mike Pompeo said last July that Kim could enjoy an economic miracle akin to Vietnam’s if he wished.

Comparing similarities

In many ways, modern North Korea is equivalent to Vietnam in the 1980s, experts say. For one, the Communist Party of Vietnam has ruled the state ever since its independence in 1945 just as the Workers’ Party of Korea has always governed North Korea.

The two countries “were both under United Nations sanctions, in the case of North Korea, for developing nuclear weapons, and in the case of Vietnam, for occupying a foreign country,” the Lowy Institute, an Australian think tank, said in a recent note.

Vietnam’s invasion of Cambodia in 1978 effectively isolated it from the world, resulting in Hanoi being denied access to international financial support for nearly a decade. Similarly, Pyongyang has long been deemed a pariah state due to its clandestine weapons program.

Read full report on CNBC here.

Ha Noi FC beat Bangkok United 1-0 in AFC Champions League

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Captain Nguyen Van Quyet converted a penalty into a goal to help Ha Noi FC beat hosts Bangkok United 1-0 in the Preliminary Stage 2 tie of the AFC Champions League yesterday in Bangkok.

Striker Ganiyu Bolayi Oseni was fouled in the box in the 87th minute of the match at the Thammasat Stadium.

The visiting side was awarded a penalty and Quyet scored with a straight shot to the left corner of goalkeeper Michael Falkesgaard.

Earlier, Oseni, Do Duy Manh and Papa Omar Faye also tested Falkesgaard but the Danish-Filipino goalie saved their shots with ease.

Bangkok United dominated the second half but could not capitalise on their chances with Tristan Do and Nelson Bonilla both failing to find the target.

Ha Noi FC are through to the playoffs and will face Chinese Super League club Shandong Luneng on February 19.

According to a report on VNS

HCM City flood-prevention project to resume after Tet holiday

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The planned multi-trillion dong flood-prevention project in HCM City is expected to resume soon after being delayed since late April last year, said the investor.

Nguyen Tam Tien, CEO of city-based Trung Nam Group, said if the HCM City People’s Committee handed over the land early, the project would be completed this year.

“I am trying to complete necessary preparation for the project to restart immediately after the Lunar New Year holiday,” he said.

The land plots in districts 7, 8, Binh Chanh and Nha Be have not been handed over, delaying the project.

While waiting to hand over the land, the investor has had to rent land from residents to ensure construction progress.

At the end of last year, Tran Vinh Tuyen, vice chairman of HCM City People’s Committee, directed agencies to ensure the progress and quality of the project.

In particular, the Steering Centre of the Urban Flood Control Programme was asked to speed up the disbursement of loans for the project.

The first phase of the flood prevention project worth nearly VND10 trillion (US$430.5 million) was suspended in April last year.

The project is expected to handle tide-related floods and lessen climate change consequences in a vulnerable 570-square-kilometre urban section inhabited by around 6.5 million people, nearly half of the city’s population.

The HCM City People’s Committee is responsible for the project’s investment and efficiency, implementation and problem-solving.

This is the largest and most expensive flood prevention construction project ever planned for HCM City. It started in June 2016 and is expected to be built over the next three years.

The project is intended to solve tidal and urban flooding.

Under the project, six tide-control gates will be built in Ben Nghe, Tan Thuan, Phu Xuan, Muong Chuoi, Cay Kho and Phu Dinh.

In addition, three pumping stations will also be built in Ben Nghe, Tan Thuan and Phu Dinh. Around 7.8 km of the dyke has been built along the Sai Gon River.

More than 300 households with 1,500 people have been removed to make way for the construction.

Delayed project

The project was suspended in late April after a supervisory consultant found that the investor had used Chinese steel for part of the project instead of steel from G7 countries, which was required in the contract signed between the city and the private investor from Vietnam.

The project’s supervisor discovered that the investor had mostly used less expensive steel that was made in China, instead of steel meeting Japanese standards or manufactured in G7 countries.

However, Tien, CEO of Trung Nam Group, said the replacement was authorised, while the city’s Department of Agriculture and Rural Development, which has the right to assess the plan, said the change was to ensure that flood-prevention structures meet construction standards.

The project is 72 per cent complete, but the stoppage led to losses of more than VND200 billion ($8.57 million) to the firm, he said.

This was not the first time the project had been temporarily halted.

In late February last year, the project was delayed because residents in the area had to be relocated.

Last August, HCM City asked for guidance from the central government on how to move on with the project, and the government said it was for the city to decide.

Sixty per cent of HCM City floods at high tide and 70 per cent of HCM City land is sinking. Climate change, urbanisation and higher tides on lower lands all make flooding a major challenge for the city.

HCM City will need up to VND97.3 trillion ($4.38 billion) for flood prevention projects by 2020, city officials have said.

According to a report on VNS

Vietnamese students win gold medals at int’l mathematics contest

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Vietnamese students won two gold medals at the International Talent Mathematics Contest (ITMC), which took place in Thailand from February 7 to 11.

Vietnam’s team comprised of 60 elementary, secondary and high school students from Hanoi. The students brought home a total 40 medals at the competition, including 15 silver and 23 bronze medals.

The gold medallists were Nguyen Duy Khoi of Trung Vuong junior high school and Tran Minh Duc of Hanoi Amsterdam junior high school.

The 2019 ITMC drew nearly 500 students from seven countries and territories of Bangladesh, Cambodia, Taiwan, Indonesia, the Philippines, Thailand and Vietnam.

The contest allows students from each country to evaluate their potential for self- development. They are also given the opportunity to exchange experience and knowledge with each other.

According to a report on VNA

How will Bamboo Airways affect the aviation market?

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The national flag air carrier Vietnam Airlines and the private Vietjet Air continue to dominate the domestic aviation market, but newcomers may begin to take away some market share.

VIRAC, a market analysis firm, said the Vietnamese air transport market includes 63 foreign airlines from 25 countries and territories which provide routine flights to and from Vietnam.

The airlines, plus three Vietnamese carriers, Vietnam Airlines, Vietjet Air and Jetstar Pacific Airlines, provide flights on 105 international air routes.

According to VIRAC, Vietjet, with 43 percent of market share, and Vietnam Airlines, with 42 percent in 2017, are the biggest market share holders and most profitable.

Vietjet, a low cost carrier, has had steady 2-digit growth rates for many years – VND27.5 trillion in 2016 and VND42.3 trillion in 2017, which demonstrated sharp growth rates of 40 percent and 54 percent, respectively, compared with previous years.

In 2018, it reported revenue of VND52.4 trillion, an increase of 24 percent over the year before, and pre-tax profit of VND5.83 trillion.

As for Vietnam Airlines, revenue of VND73 trillion was reported for the first three quarters of 2018, up by 18 percent compared with the same period in 2017.

Jetstar Pacific has also been doing well in the last two years with revenue in the first seven months of 2018 increasing by VND523 billion compared with the same period in 2017.

More foreign carriers, encouraged by the prosperity of Vietnamese airlines, are attempting to join Vietnam’s market.

Air Asia and Lion, the leading air carriers in Southeast Asia, are considering setting up joint ventures with Vietnamese partners.

Vietstar, another Vietnamese airline, received a license recently and announced it will begin providing services this year end or early next year.

Analysts said if the Vietnam AirAsia joint venture of AirAsia and Batik Vietnam of Lion Group becomes operational, the market will become more cutthroat.

Most recently, Vietravel, one of the biggest travel firms in Vietnam, has plans to establish an airline.

Bamboo Airways, the newcomer, has announced that it will focus on direct flights from overseas to tourist sites in Vietnam, including areas where FLC, the holding company of Bamboo Airways, is developing real estate projects.

The areas include Quy Nhon, Nha Trang and Thanh Hoa in the central region, Quang Ninh and Hai Phong in the north and Phu Quoc Island in the south.

An analyst said that Bamboo Airways is following a wise strategy as it doesn’t intend to gather strength on the key backbone air routes, which have been developed by Vietnam Airlines for many years.

According to a report on Vietnamnet

GBS to support BlueStar AMG extending its business in Vietnam

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BLUESTAR AMG company said on Thursday that, with the support of GBS — a business and legal services firm in Vietnam, it has received an in-principle foreign-owned enterprise (FOE) license from the Vietnam’s Ministry of Planning and Investment.

The FOE license would enable the company to offer its products and services to businesses and consumers located in Ho Chi Minh City. The license also allows company to broaden and deepen its support for businesses and consumers in other cities of Vietnam.

“Vietnam is one of the fastest developing countries in Asia with huge potential, and a lot of projects have gotten underway.

With the in-principle FOE licence, which has been advised to apply by professional lawyer of GBS, we expect to contribute positively to the development of key business sectors in Vietnam by helping our clients realize the their potentials”. Said James Sutherland, the Representative of BLUESTAR AMG.

Recently, many foreign-owned enterprises from Europe, Asian regions and US highly evaluated Vietnam’s investment environment and incentives and announced plans to expand their business to Vietnam.

“Vietnam continues to be an attractive investment destination for many businesses. Foreign direct investment flows to Vietnam rose to a new record of US$37.6 billion in 2018, up 7 per cent from the previous year. We are happy to support many foreign-owned enterprises all over the world to identify business opportunities and to expand their business operation in the country” said Ms. Sophie Dao, Partner of GBS.

About GBS

GBS is one of the most innovative business law firms in Vietnam with a network across Asia and Europe, the company focuses on the core areas of commercial activity, inclusive of investment consulting, corporate and M&A, employment and dispute resolution. More information about GBS can be found at: https://gbs.com.vn

About BLUESTAR AMG

Found in 2009, BLUESTAR AMG is a British owned, Hong Kong registered group, with the bulk of the operations in Mainland China and with satellite offices across Asia. Its main focus is Financial Planning and Asset Management with additional capabilities in Investment Property and Domestic Insurance. More information about BLUESTAR AMG can be found at: https://bluestar-amg.com

Experts cautious about stock market predictions in 2019

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The stock index has become unpredictable as there are signs of weaker liquidity, while investors are becoming more cautious.

Though agreeing that the national economy will perform well this year, analysts think the stock index is not likely to increase sharply.

Nikkei Asia Review recently published an article with positive comments about Vietnam’s economy, citing the high GDP growth rate and benefits from the US-China trade war.

The article pointed out that Vietnam has avoided monetary shocks and become a safe shelter for enterprises. In 2018, Vietnam surpassed Singapore in IPO (initial public offering) value, collecting $2.6 billion from IPOs.

Nikkei also commented that Vietnam’s stocks are relatively cheap with the P/E having dropped from 20x in April 2018 to 14-15x, lower than 20x in the Philippines and 19x in Malaysia.

However, Nikkei said there are two risks which may crush optimism in the next 12 months. These include unpredictable events associated with the trade war and the government’s concentration on short-term goals, while the economic reshuffling is going more slowly than predicted.

Nikkei is skeptical about Vietnam’s stocks, though macroeconomic indicators are very good.

With the VN Index at 892 points at the beginning of 2019, experts believe the index will not exceed the threshold of 1,000 this year.

“We are outlining business plans based on the 1,000 point-VN Index scenario. This is what we have predicted,” said Nguyen Duy Hung, chair of the Saigon Securities Incorporated (SSI).

Optimistic experts give higher figures of 1,000-1,100 points.

Bloomberg, for example, has released results of research by nine investors with knowledge of Vietnam’s market, saying that the index will be 1,049 on average, or 18 percent higher than the beginning of the year.

However, Bao Viet Securities predicted that the stock market would close at 895-960 points at the year end, which means a slight increase of 8 percent.

Nguyen Nhat Cuong from VietinBank Securities thinks the VN Index may climb to 937 points. Meanwhile, Rong Viet Securities projected the 900-1,000 point range for VN Index, which means that the fluctuation will be slight compared with 2018.

BIDV Securities’ prediction includes a relatively wide range, from 800 to 1,265.6 points. Meanwhile, Vietcombank Securities predicted a range of 300-350 points.

BIDV Securities researchers believe that index growth will depend on new cash flow and the expectation of the market being upgraded to an emerging market.

According to a report on Vietnamnet