Vietnam reaps sixth straight record year in foreign investment

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Trade war drives 9% gain in 2018, pulling garment production from China

Foreign direct investment in Vietnam climbed 9.1% in 2018 to reach $19.1 billion, the government reports, marking a sixth straight annual record as capital keeps flowing into one of Southeast Asia’s fastest-growing economies.

Industries such as apparel have been moving production out of China and into Vietnam looking to escape the higher U.S. tariffs. A prolonged trade war is expected to accelerate this shift.

Vietnam is Asia’s biggest beneficiary of the Sino-U.S. trade war, according to Mizuho Research Institute, which estimates the effect will be a 0.5 percentage point boost to its real gross domestic product.

Though investment approvals fell 1.2% in 2018 to $35.4 billion for the first decrease in four years, the dip may be due to the figure not including the large fossil-fuel power plant projects in central and southern Vietnam that received green lights in 2017.

Japan led all nations in 2018 with FDI approvals for Vietnam totaling $8.5 billion. South Korea ranked second at $7.2 billion, followed by Singapore, Hong Kong and mainland China.

Approvals last year included the Hanoi “smart city” project, in which Japanese trading house Sumitomo Corp. takes part, as well as liquid crystal display and camera facility investment by South Korea’s LG group in the northeastern city of Haiphong.

Vietnamese real GDP growth is estimated at 7.08%, according to government data. But heavy economic reliance on foreign companies represents a concern. South Korea’s Samsung Electronics accounts for roughly 25% of Vietnam’s overall exports by value.

“For sustainable growth, Vietnam needs to ease its dependence on foreign capital,” said Hiromasa Matsuura, an economist at Mizuho Research Institute.

Vietnam, with a population of nearly 100 million, ranks third among the 10 members of the Association of Southeast Asian Nations, trailing just Indonesia and the Philippines. The country’s middle-income population is expanding in large cities, including the capital and the southern commercial center, Ho Chi Minh City.

According to a report on Nikkei

Trading accounts in VN reach 2.2 million in 2018

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The number of trading accounts rose by 260,000 to reach nearly 2.2 million as of the end of 2018, according to the Vietnam Securities Depository (VSD).

Of the total, 2.14 million accounts or 98.2 per cent were individual Vietnamese investors.

The number was only 2.2 per cent of the country’s total population (nearly 97 million), which was modest, according to VSD.

The number of foreign investor accounts at the end of 2018 was nearly 28,300 – up 5,733 from the previous year.

According to VSD, the rapid increase in the number of securities trading accounts was due to the strong growth of the Vietnamese stock market.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange touched its record high of 1,204.33 points on April 9, 2018 – gaining 130 per cent from January 22, 2016.

The number of trading accounts in the Vietnamese market increased from 1.58 million in 2015 to nearly 2.2 million in 2018.

Source: VNS

Fetus-like tissue removed from Vietnamese boy

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Doctors in Ho Chi Minh City said Tuesday they had excised a group fetus-like tissues that caused a young child’s abdomen to grow unusually in size.

After a medical scan, the four-year-old boy named T.T.P. was found to have a mass of tissue, a spine, skull and ribs develop inside him.

The mass, around 12 centimeters in diameter and 1.5 kilograms in weight, occupied more than half of the right part of his abdomen, according to Nguyen Tran Viet Tanh, a doctor at the Pediatrics Hospital 2, where the child was operated.

It was linked to his kidneys and an aterty in the pelvis while impeding the flow of urine in a tube from the urine to bladder, Tanh said.

The boy suffered from a very rare congenital anomaly known as fetus in fetu, said Vu Truong Nhan – deputy head of a department at the infirmary.

Fetus in fetu is a less-known phenomenon that has had around 200 cased reported so far worldwide and admitted two explanatory theories.

One says the mass is a normal fetus that forms inside its twin while the other supposes it is a highly develooped type of tumor, having the tissue of bone, muscle and hair.

Nhan advises women three months into pregnancy to avoid exposure to dangerous chemicals and radioactive substances and only use medince prescribed by doctors even when it is a herbal remedy.

Source: Tuoitrenews

Chinese aluminum a big threat to Vietnam’s manufacturing

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Vietnamese aluminum manufacturers and high-end product importers are worried about cheap Chinese products flooding the domestic market.

Pointing to the idle plot of land next to a factory in Tu Liem IZ in Hanoi, Nguyen Hong Linh, the owner of an aluminum enterprise, complained that his production expansion plan had to be postponed.

The gloomy market and the flood of cheap Chinese products have made it impossible to implement the plan, though he has arranged enough capital.

“My factory has had to cut output since the beginning of the year,” he said.

Many other aluminum manufacturers have also reduced output. Some enterprises reportedly are running at 30-40 percent of designed capacity.

Vu Van Phu, chair of Vietnam-France Aluminum, said that while domestically made products have to undergo inspection about origin, quality and production processes, Chinese imports do not have to bear any examination.

The higher VAT input tax refund for Chinese exports is also creating competition. Under the new policy, which took effect in September, the tax refund rate was lifted from 9 percent to 13 percent. As a result, domestic manufacturers cannot sell their products at prices high enough to cover production costs.

Experts said there is a wave of low-cost Chinese imports to Vietnam. Not only steel, but other industrial products such as coal and aluminum, have flooded Vietnam. The oversupply has prompted China to boost exports to neighboring markets, including Vietnam.

The World Aluminum Association estimates that China is supplying more than half of the total aluminum supply all over the globe.

In related news, in early December 2018, the US International Trade Commission (ITC) decided to impose anti-dumping duties of 96.3-176.2 percent on aluminum imports from China for five years.

IDC’s decision was made after an investigation that was initiated after the US Department of Commerce charged that the US manufacturers are suffering from Chinese products being dumped in the US market.

US aluminum imports increased by 750 percent over the last decade, and more than 90 percent in 2014-2017.

This is not the first time the US has applied safeguard measures against Chinese imports. In early 2018, the US raised the import tariff on Chinese products to 10 percent to prevent cheap imports and unhealthy competition.

However, the US anti-dumping duty has raised worries among Vietnamese enterprises.

They have been warned that Chinese products will go through Vietnam before heading for the US in order to have ‘Vietnamese origin’, which would allow Chinese firms to avoid high taxes.

Source: VNN

Gold anticipated to keep climbing in 2019

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Global economic uncertainties, the weakening US dollar, and the growing trade tension between the US and China are anticipated to drive the gold forward in 2019.

The gold hit $1,297.1 per ounce in Asia on the January 4 trading session right after the New Year holiday, jumping more than $10 per ounce (0.7 per cent) compared to the previous day.

This was the largest growth in the past six months, driving the gold price near the $1,300 benchmark.

Local gold experts claim gold has been on an upward trend for nearly two months and it has picked up nearly $100 per ounce since mid-November last year.

Analysts at major local jewel company Phu Nhuan Jewelry JSC have attributed the soaring gold to the weakening USD in the global market, which lost 0.6 percentage points to 96.02 points, and the sharply declining US stock market in recent trading sessions.

Tran Thanh Hai, chairman of the Vietnam Gold Business Corporation (VGB) commented that the appreciating USD in the past year (driven by the US Federal Reserve’s repeated hikes) was one of the major factors holding back the surge in gold price in 2018, and the currency’s weakening would reverse this trend, putting wind in the sails of gold.

Analysts at major local commercial lender Eximbank were also of the opinion that the weakening greenback and the continuing US-China tension, as well as economic vulnerabilities underpin the price of gold this year.

Experts even forecast that the rising gold could be the leading trend throughout the year.

According to the World Gold Council (WGC), there is a high likelihood for an upsurge in gold prices this year as international investors have few risk hedge assets in the current context of increasing economic and geopolitical uncertainties.

Global investors have increased buying greenbacks as a means to mitigate risks amid the intensifying US-China trade spat, but the situation this year might be different as gold is forecast to be a safe asset for risk mitigation, while the USD will lose its shine.

US Citi Bank unveiled that they would start buying the precious metal when it fell to a more attractive level.

The bank analysts predicted that as the global stock market has been on a continuous fall, some major economies have been coming out with stimulus programmes, and amid rising geo-political risks, gold could beat the $1,300 per ounce benchmark this year and might even reach $1,400 per ounce by the end of the third quarter, averaging $1,365 per ounce in the whole year.

Many local financial experts agreed that the gold’s upward trend could maintain well into this year by virtue of strong supportive factors.

Simultaneously, regardless of market movements, the price of gold is always higher in the domestic market, and the price gap is forecast to average VND4 million ($175) per tael, according to Hai from VGB.

Source: VIR

Vietnamese minister says sorry for abusing official privilege

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Vietnam’s Industry and Trade Minister Tran Tuan Anh issued a public apology Tuesday for inappropriate use of his official car.
The apology came after the story of a car with blue license plates driving into the restricted aircraft parking area at the Noi Bai International Airport in Hanoi to pick up the minister’s wife last Friday triggered a public backlash.

Many passengers on the Vietnam Airlines flight complained that they had to make way for the minister’s wife to get off the plane, while the car belonging to the ministry picked her up right on the tarmac.

In Vietnam, blue plates are only granted to cars used by government officials, and public vehicles are to be used only for government business. Under current regulations, ministers can be picked up right in the aircraft parking area, but their relatives are not entitled to this privilege.

Following local media reports and harsh reactions on social media, Anh admitted his mistakes and extended an apology to the people.

He asked for public sympathy, explaining that he was indisposed and hospitalized when the incident took place, hence his delayed response.

The incident was a “profound lesson” for himself, his family and the ministry as a whole, the minister wrote in a letter published by major media outlets. He pledged to take steps to ensure that no similar breaches happen in the future.

This is not the first time a Vietnamese government official has drawn attention and attracted public criticism for misuse of official cars for personal purposes, but it is uncommon that senior officials apologize to the public.

In 2016, Prime Minister Nguyen Xuan Phuc issued a public apology after his motorcade drove down a pedestrian-only street in the well-preserved ancient town of Hoi An.

The social media is playing an increasingly prominent role in scrutinizing the behavior of public servants, with netizens quick to express their opinions, including their grievances.

More than half of people in the 95-million strong Vietnam are online and most of them are on Facebook.

Source: Vnexpress

Ho Chi Minh City retail sector ready for Tet holiday

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As the Lunar New Year holiday is approaching soon, Ho Chi Minh City authorities are working with relevant stakeholders to ensure retail operation and entertainment activities go on smoothly.

The national holiday, known as Tet in Vietnamese, falls on February 5 but preparation activities usually begin weeks in advance.

Retailers extend open time

The Ho Chi Minh City Department of Industry and Trade has allowed local retailers, including supermarket and convenience store chains, to extend operation time during the Tet holiday.

During the period between the 20th and 26th day of the last month of the lunar year, or January 25 to January 31 in the Gregorian calendar, retail outlets in the southern metropolis will open from 8:00 am to 10:00 pm.

On February 1, 2 and 3, these locations will open from 7 in the morning until midnight.

Particularly, on the last day of the lunar year, or February 4, retail outlets will operate half a day, from 7:00 am to 12:00 pm.

Supermarkets will re-open for half a day on the second day of lunar new year (February 6). From the 6th day of the lunar new year (February 10) onwards, their operations will return to normal.

This year, Co-op Mart organizes home delivery service for customers within two to five hours after purchase. The leader retailer’s delivery unit is fully-equipped to keep merchandise in the best conditions.

Businesses in Ho Chi Minh City have stockpiled some VND18.4 trillion (US$427.22 million) worth of goods needed for Tet, with the entire supply chain required to pay special attention to product quality and food safety, according to deputy chairman of the municipal administration Tran Vinh Tuyen.

Early purchasing flower

Some 150 million cut flowers and more than 800,000 flower pots are expected to be consumed during Tet, as locals decorate their houses to observe the holiday, according to Nguyen Huynh Trang, deputy director of the municipal Department of Industry and Trade.

Trang said the sales volume is similar to that of the 2018 Tet.

“We hope that Ho Chi Minh city citizen afford to buy flowers sooner, so flower growers can come home before midnight to celebrate their own Tet,” Trang said.

“This also helps make clean-up work more convenient for sanitary workers.”

In previous years, the sanitary workers had to work hard to clean the streets to be able to return home on time due to the massive amount of waste left by flower markets.

Source: Tuoitrenews

V-Rock 2019 to hit Hanoi on January 12

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Music fans in Hanoi will be enthralled by some amazing performances by Vietnam’s leading rock bands at V-Rock 2019, which will take place at the Bach Khoa stadium in Hanoi on January 12.

The event, organised by VTC Digital Television under the Voice of Vietnam (VOV), aims to create a forum for professional rock music and the wider genre, as well as promoting the development of Vietnamese rock.

This year, V-Rock 2019 will feature six bands including Ngu Cung, Empty Spaces, WindRunner, Ca Hoi Hoang, and Buc Tuong, guitarist Tran Thanh Phuong, and former member of Black Infinity – drummer Cuong Nhoc.

The show has also drawn in the participation of well-known Japanese sound engineer Azuma Masaaki.

Previously, the Rockstorm concert left a deep impression on local rock enthusiasts with a number of amazing performances by well-known local and foreign bands including Buc Tuong (The Wall), Morning Waits (from Hanoi), PAK Band (from Ho Chi Minh City), Ban Nguyen (from Hanoi), Microwave, and Stevans from Switzerland.

RockStorm has presented live shows in Hanoi, Haiphong, Hue, Danang, Bien Hoa, Ho Chi Minh City, and Can Tho.

According to a report on Vietnamnet

Coach Park praises players, concedes mistakes after Iraq defeat

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Vietnam’s coach Park Hang-seo was disappointed with 2-3 loss against Iraq, but praised a “great job” by his players.


 “Although we lost the match, I think the players did a great job and showed their best. The players of Iraq have better skill and stamina, but Vietnam played well,” Park said in post-match interview.

Vietnam put on an impressive footballing display against a formidable opponent, taking the lead twice. But Iraq used their advantages of speed, physical strength and skills to equalize; and claimed victory from a free kick, with just three minutes left.

“It’s unfortunate that we let them score at such a sensitive time like that. A few players lost their concentration and led to that free kick. Our goalkeeper seemed to be standing in the wrong position. We need more practice for this kind of situation,” Park said.

Park’s hopes for four points in the group stage from Iraq and Yemen have been belied by this defeat and forced him to change his calculation.

“We need to get one point from Iran in the upcoming game. It’s clearly true that they are on another level, but we will study them carefully and let’s see what happens next,” he said.

Striker Nguyen Cong Phuong, who helped earn Vietnam’s an own goal and scored another, motivated his teammates after the game.

“It’s ok to lose the first game, because we still have two more ahead. The team will try their best,” Phuong said.

On the other side, Iraq head coach Srecko Katanec showed his respect for Vietnam after the game.

“Iraq respects Vietnam because they possess many skilled players and great fighting spirit. In Iraq, people think that Vietnam is an easy opponent and expect a 4 to 5-0 win. But I never think like them.

“After this game, I have even more respect for Vietnam. They have run and attacked tirelessly in the whole match,” Katanec said.

Vietnam will face the strongest team of group D, Iran, on January 12 in Al Nahyan Stadium, Abu Dhabi at 6 p.m. (Hanoi time).

According to a report on VnExpress

One dead, two missing as Vietnamese oil tanker catches fire off Hong Kong

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A Vietnamese oil tanker caught fire off the coast of Hong Kong on Tuesday morning, killing one crew member and leaving two others unaccounted for, Vietnam’s Ministry of Foreign Affairs reported.

The Aulac Fortune vessel was carrying 25 Vietnamese crew members prior to the incident, the Vietnam News Agency said, citing the foreign ministry.

The fire broke out when the 17,500 metric ton tanker was being refueled by an oil barge about one nautical mile south of Lamma Island off southern Hong Kong at around 11:30 am.

One sailor died and two remained nowhere to be found, while three others were injured.

Hong Kong authorities deployed three rescue vessels and three high-speed canoes to the scene to put out the flame.

The Vietnamese Consulate General in Hong Kong and Macao has asked Hong Kong authorities to conduct urgent search for the missing crewmen and offer medical treatment to the injured.

The foreign ministry assigned the consulate general to maintain close contact with local authorities to update information and take necessary measures to protect the legitimate rights and interests of crew members.

A representative of Ho Chi Minh City-based Au Lac JSC, which specializes in maritime transport, confirmed to Tuoi Tre (Youth) newspaper on the afternoon of the same day that the tanker belongs to the firm.

The company is working closely with Hong Kong authorities to determine the cause of the incident.

The ship was built in South Korea in 2010, measuring more than 144 meters long and 22.6 meters wide.

Prior to the accident, the Aulac Fortune docked in Dongguan port in Guangdong, China before leaving at 6:00 pm on Monday.

According to a report on Tuoi Tre

Incurring big losses in 2018, investors became disillusioned with cryptocurrency

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2018 was described as a fearful year for cryptocurrency investors.

After booming in price in 2017, bitcoin (BTC) and other cryptocurrencies all tumbled in 2018. By January 1, 2019, the price of one bitcoin had dropped to $3,700, a dramatic fall from the peak of $19,665 per bitcoin seen on December 16, 2018.

With the decrease, investors incurred big losses and sold cryptocurrency mining machines.

T.H.L, an amateur investor in HCMC, told reporters that he bought 1 BTC in 2018 for $14,000. The BTC price began plummeting and he had to sell bitcoin in October at a loss of $7,000.

Minh, an officer of a BTC trading floor, said in late 2017, when BTC was priced at $20,000, the trading floor was always full of investors and transactions took a long time.

Meanwhile, it takes investors two seconds to complete a transaction. As the BTC price has dropped dramatically, most investors have left trading floors.

Nguyen, an investor on remitano.com, also said there are few investors these days as many investors have lost all of their money. As there is no sign of BTC price recovery, BTC holders have to sell BTC to stop losses.

Not only BTC investors but cryptocurrency mining machine holders said their machines remain unsold.

“With the current BTC price, the profit investors expect from bitcoin mining will not be high enough to cover electricity bills,” said N.X. Hieu, a BTC miner in HCMC.

In such a chaotic cryptocurrency market, the biggest sufferers are investors who poured real money into ICOs (initial coin offering) organized by ‘bogus’ companies.

A member of a group of 40 investors who invested in BNC and BEC issued by BNI Group admitted that he has lost 2 billion in these two cryptocurrencies because there has been no transaction in the last six months.

Similarly, iLuck, another group of 400 investors, specializing in investing in cryptocurrencies issued by foreign firms, have lost their money.

In April 2018, thousands of people denounced Modern Tech for swindling investors to appropriate VND15 trillion. At that moment, iFan and Pincoin attracted thousands of investors because of the sky-high promised interest rate of up to 576 percent.

The State Bank of Vietnam has many times affirmed that cryptocurrencies are not legal currencies which are legally accepted in payment, and that the issuance, distribution and use of BTC and similar cryptocurrencies as means of payment are prohibited in Vietnam.

According to a report on Vietnamnet

Car manufacturers reduce production, increase imports

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Though continuing investment in their production bases, foreign-invested automobile manufacturers in Vietnam are placing high expectations on car imports.

Ford Vietnam, for example, stopped assembling Fiesta cars after eight years in Vietnam. Fiesta, together with EcoSport and Focus, is a well-invested small model. Hitting the market in mid-2011 with a sedan and hatchback, the B-class model is equipped with many new technologies.

Over 1,800 products were sold within six months, amounting to 18 percent of the sales of small automobiles.

However, the sales of Fiesta saw a dramatic decline in 2012 in the context of the gloomy market with only 900 cars sold. In the following years, the sales continued falling with 847 cars sold in 2013, 829 in 2015 and 949 in 2016. Less than 400 products were sold in 2018.

After 20 years of development in Vietnam, most automobile joint ventures are not focusing on car assembling, but they are importing cars for domestic sale.

In 2017, Toyota stopped assembling Fortuner, a favorite model in Vietnam, shifting to importing Fortuner from Indonesia for domestic sales.

In early 2018, Toyota continued importing three new models – Wigo, Rush and Avanza. Of its 10 car models available in Vietnam, six are imports.

Similarly, among Honda’s seven car models available in Vietnam, six are imported from Thailand. Toshio Kuwahara, CEO of Honda Vietnam, explained that it is impossible to assemble all car models in Vietnam because the domestic market remains small.

Foreign invested enterprises are still pouring more money into their facilities here even though they have scaled back production .

Ford Vietnam’s CEO Pham Van Dung confirmed that despite the big changes in business strategies, Ford has invested millions of dollars more in the production line in Hai Duong province.

The company has equipped its bodywork division with robots to improve the stability and aesthetics of bodywork. It has also spent money on 20 welding machines using high technology to improve the welding point quality.

One reason cited by automobile manufacturers to explain their decision to strengthen imports is the weak supporting industries in Vietnam. As they have to import the majority of car parts needed for domestic assembling, the production cost is high and competitiveness weak.

There are 300 enterprises in the automobile supporting industries in Vietnam. Of these, only 84 enterprises are first-class vendors, and 145 are second- and third-class vendors.

The number of enterprises is not enough to provide car parts to 20 automobile manufacturers.

An automobile is assembled from 30,000-40,000 car parts. About 90 percent of car parts in the country are imports.

According to a report on Vietnamnet


Vietnam’s Bamboo Airways Secures License

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Vietnam’s start-up Bamboo Airways has secured a license from the local authorities, opening the way for its maiden flight in January after a string of delays, said the company in a statement.

According to a report on Reuter, Bamboo, owned by hotel and leisure firm FLC Group will operate 37 routes connecting major cities and tourist destinations in Vietnam to “reduce pressure on aviation infrastructure,” the airline said in a statement.

“In 2019, Bamboo Airways will also launch international air flights to Asian countries, starting with Japan, Korea and Singapore,” it said, adding that it also intended to operate flights to Europe, without elaborating.

Vietnam’s fifth airline signed a provisional deal in July to buy 20 Boeing 787-9 wide-body jets worth $5.6 billion at list prices, and a memorandum of understanding in March with Airbus for up to 24 A320neo narrow-bodied aircraft.

Vietnam, one of Asia’s fastest growing economies, has recorded double-digit expansion in domestic and inbound passenger numbers. The government aims to spur on tourism with visa exemptions and by promoting investment in the industry.

The granting of an Air Operator Certificate (AOC) from the Civil Aviation Administration of Vietnam marks the end of a series of stalled launches for Bamboo.

Bamboo Chairman Trinh Van Quyet, also head of FLC, told Reuters in November he aimed to launch the first domestic flight in December after a delay from October. But that date was pushed back due a further delay in the issuing an AOC. Reuter reports.

The airline said in December it planned its first flight in mid-January.

Tuesday’s statement did not mention a more specific date.

Asian Cup 2019: IRAQ 3 – 2 VIETNAM

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The Golden Dragons have been impressive – they lead at the first half.

Tuesday saw perhaps the most entertaining group stage match of UAE 2019 thus far. Iraq came from behind twice and ultimately grabbed all three points thanks to Adnan’s superb free-kick at the death.

Vietnam took the lead through an own goal by Ali Faez Atiyah in the 24th minute only for Mohanad Ali Kadhim to bring Iraq level just over ten minutes later. Nguyen Cong Phuong then put the AFF Championship winners back in front right before the break, showing his quick instincts to bundle home a rebound.

Humam Tareq Faraj brought Iraq level 15 minutes into the second half with a close-range deflected shot, setting the stage for Adnan to complete Lions of Mesopotamia’s impressive comeback in style with a well-placed, curling free-kick beyond the reach of keeper Dang Van Lam.

Iraq clinched a 2-0 win in the sides’ only previous Asian Cup encounter in 2007, the tournament they went on to lift the trophy.

The Vietnamese now face the uphill task of facing IR Iran on 11 January, while Iraq will play Yemen on the same day.

#AsianCup2019 #BringItAll #IRQvVIE

Donald Trump and Kim Jong Un could meet in Vietnam’s capital

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U.S.-North Korea summit likely in Vietnam

President Donald Trump and North Korean leader Kim Jong Un could meet in Vietnam’s capital for their second summit on Pyongyang’s nuclear ambitions.

South Korean newspaper Munhwa Ilbo said, denuclearization talks have sputtered since Trump and Kim held an unprecedented June meeting in Singapore, with Washington and Pyongyang each calling on the other to take action. A second summit could address concerns to global security after Kim piled pressure on Trump by threatening in his annual New Year’s address to take a “new path,” if the U.S. didn’t relax economic sanctions.

According to a report by Jihye Lee on Bloomberg, U.S. officials have met their North Korean counterparts in Hanoi for discussions to adjust scheduling for the talks, the newspaper said, citing high-level diplomatic sources in Seoul and Washington it did not identify. Government officials haven’t commented on the report.

Such a summit would be certain to grab global attention and help boost the profile of the host nation. But it also presents enormous security challenges for Trump, the leader of the world’s biggest economy, and Kim, head of arguably one of the world’s most paranoid states.

Vietnam is a long-standing ally of Pyongyang that has good relations with Washington. Speculation about the country’s prospects as a summit site grew following North Korean Foreign Minister Ri Yong Ho’s visit there from Nov. 29-Dec. 2.

The South Korean newspaper JoongAng Ilbo previously reported that Mark Lambert, a senior U.S. State Department official handling North Korea issues, visited Vietnam in December. It was unclear whether he was in Vietnam at the same time as North Korea’s foreign minister.

Vietnam’s capital, the Hanoi — about a four-hour flight from Pyongyang and in airspace over countries friendly to North Korea — boasts top-class hotels. Vietnam’s ruling Communist Party also has the security apparatus to squelch protests and keep curious onlookers far away from Trump and Kim.

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